Supplier Performance Scores

Your buyers may be having issues with your suppliers and you may not even know it.  How do you know that you are getting what is expected from your suppliers?  How do your suppliers know they are doing what is expected?  I know, there is that annual survey that my suppliers send out asking how they are doing...but I didn't have time to fill that out for the last 3 years in a row.  So I or they don't really know when things are going wrong or right.  One of the easiest things to do is to survey your buyers on each purchase order that they cut to the suppliers and then share that informaiton across the organization.  It can be quick and easy or complex however, the important piece is to get informaiton to both your suppliers and your buyers on how they are doing.  A simple approach is based on Quality, Service, and Price (QSP) or Quality, Service, and Delivery (QSD).  Each of these can be very straightforward and can be scored in a percentage environment.  The example I like to use is the QSD, Mine looks something like this;

Quality = 30% Overall

- Paper Damage (0 - 10) 33% of the category

- Ink Smear (0 - 10) 33% of the category

- Packaging (0 - 10) 33% of the category

Delivery = 50% Overall (Select One)

- Early 80%

- On-Time 100%

- Late 1 Day 80%

- Late 2 Days 60%

- Late 3 Days or More 30%

Service = 20% Overall

- Customer Service (0 - 10) 30% of the category

- Quote on Time (0 - 10) 50% of the category

- Sales Support (0 - 10) 20% of the category

Based on this type of scoring I can provide at least some basic feedback to my suppliers on a per purchase order basis and make the score cumulative so I can see overall how my suppliers are performing.  In addition, setting a base criteria fro performance with your suppliers can help them understand if they are meeting your buyers expectations.  Rating them based on current score (30 or 60 days) and also overall will help both you and them in making decisions about whether the supplier is the right choice to produce a job that is critical to your organization.