Wednesday, October 10, 2007
Supplier Scorecards
Often when there are several criteria for a supplier selection, purchasers often rely on supplier scorecards as a guideline. Supplier scorecards allow a maximum number of points per criterion. Suppliers’ scores for each criterion are based on predetermined point award schemes. For example, one criterion may be location with a maximum of 30 points. The evaluator may award 30 points if the supplier is located within 50 km of the purchaser’s plant, 20 points if the supplier is located between 75 to 100 km away, and 0 points if the supplier is located more than 200 km away. The Supplier scorecard is providing your company with an effective tool for supplier monitoring. To take this example further the supplier scorecard can run the whole gamut on supplier relationship management by including corrective actions, supplier corrective actions etc. A Supplier scorecard is a critical suppier management tool.
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