Supplier Scorecards and Measures

Today we are competing in a global economy. The days when we could focus on the domestic economy are gone. This is very evident when we realize that as a consumer today there are three things that are desired. They are world-class quality, fast delivery, and the best possible price. None of these desires holds aity indication about where it is made. As long as all three of these desires can be met, the consumer will be happy. 

The implications of the globalization of the supply chain require both customers and suppliers in many different businesses to rethink and change their processes of doing business. 

We will need to develop scorecards and measures for suppliers because the quality standards require it. For example, the standard ISO 9001 2000 states the following in Section 7.4.1, Purchasing Process  

The organization shall evaluate and select suppliers based on their ability to supply product in accordance with the organization s requirements. Criteria for selection, evaluation and re-evaluation shall be established. Records of the results of evaluations and aity necessary actions arising from the evaluation shall be maintained. 

Supplier Performance shall be monitored through the following indicators  

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