If a supplier disappears next week, do you have a Plan B ready? If the answer is anything other than a confident yes, you need a scorecard.
The four tiers
- On-time delivery % � did the goods arrive when promised?
- In-full delivery % � was the quantity correct?
- Defect rate � how often is something unusable?
- Response time � how fast does the supplier answer queries?
Routing POs by score
Your A-items belong with your A-suppliers. Use the scorecard to route automatically.
Quarterly reviews
Sit down with each top supplier every quarter. Share their scorecard. Most suppliers improve immediately when they discover they're being measured.