TPRM Proof of Value (PoV) Plan for Industrial Supply Chains

This pragmatic plan shows how industrial teams can validate Third‑Party Risk Management (TPRM) on Parakeet Risk in weeks—not months. It leverages the platform’s Supply Chain Resilience, Rosella AI Agent, and Spreadsheet Synergy to automate certification tracking, surface supplier risks, and quantify ROI with real‑time metrics. The outcome: a repeatable playbook your organization can scale after PoV.

Goals and KPIs (defined)

Focus the PoV on five operational metrics that connect directly to continuity and cost.

• Alert lead time: Average hours/days between Parakeet’s supplier risk/certification alert and issue effective date or SLA breach. Higher is better.

• False‑positive rate: Dismissed alerts ÷ total alerts during PoV. Lower is better.

• Supplier response rate: % of questionnaires or document requests completed within SLA. Higher is better.

• CAP closure days: Average business days to close corrective action plans from identification to verification. Lower is better.

• Onboarding cycle‑time: Calendar days from “request to onboard” to “ready to transact” for new suppliers/contractors. Lower is better.

Suggested targets (agree at kickoff based on baseline):

• Alert lead time: +20–40%

• False‑positive rate: −25–50%

• Supplier response rate: +15–30%

• CAP closure days: −20–40%

• Onboarding cycle‑time: −25–50% (use Trello integration where applicable)

Required data loads (minimum viable set)

Parakeet Risk preserves your existing Excel knowledge while adding automation and audit trails.

• Supplier inventory: IDs, names, categories, criticality tier, owning business unit.

• Sites and geographies: Site addresses, regions, associated suppliers, products/materials impacted.

• Certificates and attestations: Expiry dates (e.g., ISO 9001/14001), insurance, compliance statements; include notification contacts.

• Sample documents: Contracts/MSAs, SLAs, quality agreements for 10–20 representative suppliers.

• Questionnaires: Due diligence, ESG/EHS, data protection; include scoring rubrics and SLA.

• Events and incidents (optional): Past corrective actions, recalls, late deliveries to seed analytics.

• User/role map: Procurement, Compliance, Risk, Operations, IT/Security stakeholders for access and approvals.

Upload formats: native spreadsheets or CSVs, plus simple mappings to system fields via Spreadsheet Synergy. Use pre‑built connectors where available (e.g., Trello for onboarding workflows).

Success criteria

The PoV is successful when the team can demonstrate:

• All required data loads mapped and validated; critical suppliers (Tier 1) have complete profiles and certificate schedules.

• Real‑time alerts active for certificate expirations and missing documents; Rosella AI Agent generates draft risk assessments and summarizes supplier responses.

• KPI deltas vs. baseline meet or exceed agreed targets for at least two consecutive weeks.

• Audit‑ready evidence produced automatically (requests, responses, CAP timelines, approvals) with unified traceability.

• Stakeholders endorse a scale‑out plan and budget based on quantified ROI.

Week‑by‑week PoV plan (6 weeks)

• Week 0: Prep and baselining

• Confirm scope (business unit, category, 50–150 suppliers). Lock KPIs, SLA definitions, and data owners.

• Extract 8–12 weeks of historical data to establish baselines.

• Schedule cadence and decision gates.

• Week 1: Environment and data loads

• Provision roles, SSO, and workspaces. Load supplier inventory, sites, and certificates.

• Map fields from spreadsheets; validate 10% sample. Enable certificate‑expiry alert rules.

• Week 2: Workflows and questionnaires

• Configure due‑diligence and ESG/EHS questionnaires; define scoring and SLA.

• Connect onboarding workflow (e.g., Trello) for cycle‑time tracking.

• Pilot outbound requests to 15–25 suppliers.

• Week 3: Rosella and risk scoring

• Enable Rosella AI Agent for regulatory change capture relevant to suppliers and for response summarization.

• Turn on supplier risk signals (e.g., missing documents, approaching expiries) and triage playbooks.

• Decision Gate 1: Validate alert quality (target false‑positive rate trend down) and supplier response rate ≥ baseline.

• Week 4: CAP management and evidence

• Standardize CAP templates and due‑date rules; start measuring CAP closure days.

• Demonstrate automated audit trail: requests, responses, approvals, and time‑stamps.

• Week 5: Iterate and harden

• Tune alert thresholds and routing to reduce noise; refine questionnaires and scoring rubrics.

• Expand to next supplier tranche if capacity allows; coach business users.

• Week 6: Results, ROI, and scale plan

• Compare dashboards vs. baseline; calculate operational savings with Real‑Time ROI Metrics.

• Decision Gate 2: Executive review; agree scale‑out, integration priorities, and funding.

Meeting and decision cadence

• Daily (Weeks 1–5): 15‑minute stand‑up for blockers, data quality, and supplier outreach.

• Weekly (All weeks): 45‑minute working session to review KPIs, alert tuning, and CAP status.

• Biweekly executive steerco: 30 minutes at Weeks 3 and 6 for Decision Gates 1 and 2.

• As‑needed office hours for supplier enablement.

Stakeholder RACI

• Accountable: Executive Sponsor (e.g., VP Operations or CPO).

• Responsible: Procurement Lead (TPRM process), Compliance Officer (policy and evidence), Risk Manager (scoring and thresholds).

• Consulted: IT/Security (SSO, access control), Quality/QMS lead (certifications), Site Operations (site‑level impacts), Legal (contracts/MSAs).

• Informed: Finance, EHS Director, Category Managers.

Measuring baseline vs. post‑PoV in dashboards

1) Define windows

• Baseline: the 8–12 weeks prior to Week 1.

• Post‑PoV: Weeks 4–6 (use weekly medians to smooth ramp‑up).

2) Configure metrics

• Create KPI cards for the five core metrics with formulas and current SLA.

• Add supplier‑tier filter (Tier 1/Tier 2) and geography filter to isolate scope.

3) Compare and attribute

• Plot baseline vs. post‑PoV deltas; annotate changes tied to alert tuning or workflow updates.

• Use Real‑Time ROI Metrics to translate cycle‑time and CAP gains into cost avoidance and working‑capital impacts. See the ROI Methodology and the spreadsheet ROI Model.

4) Export and share

• Export dashboard views and evidence logs for the steerco package; follow the Export Guide.

TPRM PoV checklist (downloadable)

Use this checklist to track PoV readiness; export to PDF/CSV via the platform’s export function or your browser. For broader TPRM best practices, visit the TPRM Hub.

What happens after PoV

• Scale supplier coverage and add advanced signals (e.g., material traceability).

• Expand document automations for certifications and insurance renewals.

• Formalize quarterly business reviews using KPI dashboards and Real‑Time ROI Metrics.