How do you score (rate) your suppliers?

J

johnnyrako

I am trying to revise our method for scoring suppliers and was hoping that there is a "best practice" out there is SQ land which may help me.
Could you please share with me your methods for scoring/ranking your supplier network?

Thanks

JR
 
Re: How do you score your suppliers??

I create a score based on number of received defectives divided by number of years we have used the supplier. I compare this to the average to see where they stand related to other similar suppliers. This "score" is kept with the approved vendor list. Also factored in are on time delivery, full quantities, etc.
 
S

SteveK

Re: How do you score your suppliers?

Could you please share with me your methods for scoring/ranking your supplier network?

We use a simple grading system as per attachment, and our Purchaing Manager updates his database annually.:2cents:

Steve
 

Attachments

  • Supplier Scoring Card.pdf
    15.9 KB · Views: 978
J

johnnyrako

Re: How do you score your suppliers?

My plan was to do something like an RPN calculation so that it normalizes the data but I am not stuck on this process and I am open to other processes. If you would be willing to share the spreadsheet with me or the calculations, I would certainly appreciate it.
Thanks in advance!!
 

somashekar

Leader
Admin
Re: How do you score your suppliers?

My plan was to do something like an RPN calculation so that it normalizes the data but I am not stuck on this process and I am open to other processes. If you would be willing to share the spreadsheet with me or the calculations, I would certainly appreciate it.
Thanks in advance!!
The most widely used perhaps is the quality rating, delivery rating, price rating, with some assigned factors for each and calculate a vendor rating (supplier score) over a defined period.
I would not consider price into this, as this is something that both you and supplier decide and agree before supplies begin. That leaves only quality and delivery.
You can decide to have equal weightage for this two or factor it according to your logic.
Remember that quality score does not only come from parts inspection records, as many a times this can be a sample check. From your process performance, when good traceabilities and systems are established, you can get data about process scrap and maker's scrap. The maker's scrap can get onto the quality rating.
You get a fairly good and true picture of your supplier's score.
 
Re: How do you score your suppliers?

My plan was to do something like an RPN calculation so that it normalizes the data but I am not stuck on this process and I am open to other processes. If you would be willing to share the spreadsheet with me or the calculations, I would certainly appreciate it.
Thanks in advance!!
Ok, here is a quick and very dirty translation (from Swedish) from our Supplier Evaluation procedure:

"Data covering Delivery, Quantity, Quality, performance combined with cooperation, Prices, Rejects and complaints are periodically put together and analysed. Each mentioned aspect is graded on a scale ranging from 1 to 5, where 1 is poor and 5 is very good."

Any mean score lower than 2.0 leads to action requests, Action plans and so on...

/Claes
 

Bev D

Heretical Statistician
Leader
Super Moderator
Re: How do you score your suppliers?

hmmm. how about a completely different approach?

I eschew rating systems that try to create mathematical precision from what is really subjective ordinal data (suc as RPNs). What does all that work really do for you? is there a real difference between a supplier that has a 3.2 and one with a 2.8?

I simply 'rate' them into 3 buckets:
  • exceptional - wish they made everything we buy
  • solid & dependable (occasional hiccups)
  • Wish I'd never heard of them

I ask 3 questions:
  • Who keeps you awake at night?
  • Who do you spend the most time with on a regular basis
  • Who would you not hesitate to buy from again

simple, insighful, actionable.

and no hokey-pokey math.
 
S

SuperGirl

Re: How do you score your suppliers?

We do quarterly reveiws where we fill out the attached form and send to the supplier.
 

Attachments

  • FORM-031 (suppiler review).pdf
    16.7 KB · Views: 400
Re: How do you score your suppliers?

@Bev -

I could not agree more, but that approach has run me into trouble in the past. In companies where purchasing makes the decisions about what supplier provides which materials/parts/service, they want to see something other than "Well I have had big problems with their stuff before". What usually happens is one of the suppliers finds out they didnt get the job, and they want to know why, then when they call, they are directed to me, and I have to tell them that their parts/service is poor, and they put up a big argument. It is easier to tell them they are currently ranking a 3.2, and here is why, than to argue about subjective things. Hopefully as they learn about how we score them, they will make attempts to improve their scores, and thus increase the quality of parts/service.
 
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