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1. Supplier Qualification Management: A New Tool in the
Supplier Information and Performance Management Toolbox
Gretchen Gayowski, Assistant Vice President and Senior Vendor Risk Management, Hilltop Holdings, Inc.
April Miller, Senior Consultant, SAP Ariba Best Practice Center / March 15, 2016
Public

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Agenda
Welcome
Supplier Qualification Management (SQM) Overview
 Project Components
 Groups and Permissions
 Use Cases
Customer Story
 Hilltop Holdings Inc.
Best Practice Recommendations

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SQM overview
The process by which buyers validate suppliers for a particular job or activity
Additional qualification/approval process for social, environmental, or additional
business requirements
Continuous qualification life-cycle through recurring tasks and phases
Suppliers may need to be re-qualified every year

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SQM project components
Tasks (To Do, Review, Approval, Negotiation, Notification)
Project Teams for visibility and task assignment
Ability to conditionalize documents and tasks
Customized process flow

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SQM groups and permissions
Groups needed for users to manage and work with SQM projects:
SQM Agent: Members of this group can create Supplier Qualification Management projects. They
CANNOT change the Supplier Qualification Status or add/edit/delete suppliers
SQM Manager: Members of this group can create Supplier Qualification Management projects and
change the Supplier Qualification Status. They cannot add/edit/delete suppliers.

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Use cases
1. Providers of direct commodities need further screening regarding the quality of their
particular commodity.
2. Packaging providers must be certified by buyer organization because of
sensitive materials.
3. Professional Translation Services need to certify interpreters every three years.
4. Supplier Due Diligence Activity needs to be collected, reviewed, approved
and monitored.

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Welcome – Hilltop Holdings Inc.
Gretchen Gayowski is currently the Assistant Vice President and Senior Vendor Risk Management professional at Hilltop
Holdings Inc. focusing on Supplier Risk Management and the implementation and management of Ariba SQM, Sourcing, SIPM
and Contract Management Professional. Gretchen led the successful deployment of SIPM and Contract Management within a
subsidiary company and is now leading the expansion of the Ariba Upstream Solutions at the enterprise level while focusing
particularly on vendor risk management processes and how the Ariba solution can support the enterprise business
requirements. Gretchen brings over 17 years of experience in Vendor Management with the last 5 years specifically in the
Financial Services Industry.
Prior to joining Hilltop Holdings Inc, Gretchen held the position of Sr. Manager at MCI/Worldcom for 12 years with primary
focus on supplier and contract management from within the engineering organization and later within the Procurement
Operations organization. In addition, Gretchen supported Verizon as a Sr. Consultant for 2 years focusing on the integration of
enterprise-wide procurement groups, including supplier management, through the optimization of existing business processes.
Aligning businesses within ever changing regulatory environments are a proven area of excellence for Gretchen. Detailed
experience with spend analysis and the integration of this data into ongoing purchasing and sourcing decision making activity
have been key components to Gretchen driving successful business transformations within procurement organizations.
Additional supply management experience includes strategic sourcing, vendor solicitation, onboarding and management,
vendor risk analysis and on-going vendor performance management. Gretchen holds a BA from Hood College and MLA from
Southern Methodist University. Gretchen pursued a post graduate certificate in Dispute Resolution and Negotiation from
Southern Methodist University because she is a firm believer that through effective collaboration we can all achieve
great success.

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Supplier qualification management from vendor administration to
vendor management
Pre-planning for inclusion of SQM into the existing workflow began 2Q15
Business Requirement:
Account for and Manage Suppliers across the Entire Hilltop Holdings Inc. Business Enterprise
Organize and Align Multiple Subsidiaries Under One Vendor Management Policy

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Strategic business objective
Why do we need to do this? (I was happy with my file cabinet!)
Strategic Onboarding of Suppliers
Track Due Diligence Activities
Document Management
Vendor Engagement Management
Regulatory Requirements
Vendor Visibility across the Enterprise

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Integration with existing business process and SAP Ariba
upstream solutions
SourcingRequestSIMSupplierWorkspaceSQM
Start
End User
Submits
Requests
Vendor Manager
Receives Requests
Vendor Manager
sends invitation
for Vendor to
Register via
Message Board
in Sourcing
Request
Vendor Manager Reviews
Existing Registration Material
Business
Segment Vendor
Manager
Receives
Registration
Create SQM
Follow-On Project
Has Vendor Been
Previously Engaged?
Supplier provides
survey responses
& documents
Vendor Manager
Initiates Surveys and
gathers Supplier
Responses/
Documents for Due-
Diligence
Vendor Manager
Sends Surveys to
Supplier for
Data/Document
Gathering
Is Engagement
Approved?
End
Archive Supplier
documents and
manage within
respective
folders
Set up automated
document
renewal and
notification tasks
to Suppliers
Yes
Yes
No
No

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Connecting the “dots” – key benefits
Transition from SPQ Document Administration to SQM Document Management
Can now track and send customized expiration notices to vendors and stakeholders
Legacy Documentation is maintained in one place
SQM provides a survey function for scoring and grading vendor responses
Beyond SIPM - Connecting SQM to the Sourcing Request
Allows the requestor to monitor the status of their request directly while avoiding additional user
license requirements
Provides more complete qualification status opportunities
Can accurately track the vendor review period and notify all stakeholders of upcoming activity

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Best practices
Use surveys to collect information from internal or external users to further qualify a supplier
SAP Ariba Approved vs. Customer Approved
Add recurring onsite quality checks
Can be used for Risk Management

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