Supplier ratings tend to be the angst of most procurement and supplier quality organizations. Both groups want to establish an effective, consistent, and fair methodology to gauge the supplier’s performance over time. The difficulties experienced here usually revolve around the general approach for each organization.
Procurement groups look at suppliers and want to gauge them primarily on receipt activity. With this they want and need to know how well the supplier performed with regard to the desired delivery date. This can be satisfied by one of two methods; either through a simple window methodology or through a scaled window methodology. The definition of these window parameters is completely configurable by the administrator of the system.
Supplier quality groups not only want to evaluate the delivery performance but then also want to determine the general quality level of the product as it is received and used throughout the facility. Through multiple configuration options, an administrator can establish different rating requirements for the calculations.
Supplier Ratings Address the Following Challenges:
- Inadequate or Totally Lacking Supplier Rating System
- Adversarial Relationship with Suppliers
- Non-Objective Supplier Evaluation/Rating
- Paper Based Supplier Report Cards
- Inclusion of Supplier Caused Production Assembly Failures into Supplier’s Rating
Using supplier rating capabilities and leading-edge collaboration tools, supplier quality management is simpler and more effective, providing greater value than ever before. Understanding the real cost of supplier failures, including the costs associated with poor supplier quality, provides users with the data to make meaningful change and the required ROI to implement a robust supplier quality management solution.
Understanding the individual components, how they are calculated, and how they can potentially impact the blended ratings is critical to effective supplier quality management.
The following ratings can be considered and blended into a unified rating which can communicate the overall health of the supplier both internally and externally, as desired.
- Delivery Rating
- Receiving Inspection Quality Rating
- Nonconformance Rating
- Corrective Action Rating
TIP Supplier Quality Collaboration is a comprehensive solution that ensures ratings include all pertinent data and that supplier scores are available throughout your organization. Complete history of supplier performance with Quality and Overall ratings are available for current, 3 Month, 6 Month and 12 Month views. Contact us to request a copy of our Supplier Rating Calculation Methodology document that will help you to understand how each of these ratings are formulated.