Benchmarking Supplier Certification Programs

[RosieA]

I'm interested in benchmarking supplier certification programs that those of you on the Cove may be using.

Questions:
1. Do you have levels of supplier certification?

2. Do you reward your top performers, and if you do, how?

3. What are the components you include in your evaluation? EX: quality, delivery, responsiveness, price, technology innovation, etc.

4. What level of performance is considered to be an excellent supplier?

Thanks,
Rosie

 

[Stijloor]

Re: Supplier Certification Programs

I'm interested in benchmarking supplier certification programs that those of you on the Cove may be using.

Questions:
1. Do you have levels of supplier certification?

2. Do you reward your top performers, and if you do, how?

3. What are the components you include in your evaluation? EX: quality, delivery, responsiveness, price, technology innovation, etc.

4. What level of performance is considered to be an excellent supplier?

Thanks,

Rosie

Can someone help Rosie?

Thank you!

Stijloor.

 

[qusys]

Re: Supplier Certification Programs

I'm interested in benchmarking supplier certification programs that those of you on the Cove may be using.

Questions:
1. Do you have levels of supplier certification?

2. Do you reward your top performers, and if you do, how?

3. What are the components you include in your evaluation? EX: quality, delivery, responsiveness, price, technology innovation, etc.

4. What level of performance is considered to be an excellent supplier?

Thanks,
Rosie

1. There are some rankings based upond scorescards evaluation
2. No
3. The same you said, including cost reduction program and other optional ( services, chance of training and support , documentaion and so on)
4. It depends on the goals setting and the possibility to have for them programs of continuous improvements ( example, usage of ISO TS method etc...)

 

[jasonb067]

Re: Supplier Certification Programs

1. Do you have levels of supplier certification?
Yes, we have two types of certification. Suppliers which are ISO certified and suppliers what are what we call, "SQE Approved". The SQE Approved suppliers are not ISO certified and we have them on a six month or annual audit schedule based on their performance. This to help develop them to compliance of the standard without using a lot of their resources. These are typically very samll and specialized companies.

2. Do you reward your top performers, and if you do, how?
Yes, where it counts which is in the piece price. If based on our evaluations a company is Grade A Certified (I will explain below) we will pay up to X% more for their parts than those not Grade A. That % is set but I do not want to disclose in public.

3. What are the components you include in your evaluation? EX: quality, delivery, responsiveness, price, technology innovation, etc.

Monthly we rate Quality Profile (PPM 70%, NCR 30%) + Delivery + Customer Satisfaction + Lean Processe Health. Those catagories are weighted Q. Profile 50%, Delivery 30% and 10% each for the balance. If performance drops below a certain value then an SQE will visit and an action plan for recovery will be started.

This rolling 6 mo. score is part of an overall evaluation which is done twice per year. This larger evaluation includes finicial risk, piece price, product engineering development. If, based on bench marking to the rest of our approved vendor list a supplier is scored into a top Y% then that company earns a Grade A Certified (yes, named after the USDA rating system). Grades range from A to D. Below that there is a non-rating category and those suppliers are to be removed from our approved vendor list.


4. What level of performance is considered to be an excellent supplier?

We have one rating level above Grade A Certified. This rating is what we would consider excellent. Of over probably 300 companies evaluated only one has earned that rating. Our buyers are allowed to pay an even larger % for their parts.

Keep in mind we are an assembly operation and our suppliers are very important to our success. We do very little to no primary manufacturing in any of our facilities.

 

[JDB55]

Re: Supplier Certification Programs

I am also tasked with creating a certified supplier program for my company. Does anyone have a procedure or document that can help me get started?
I expect certified supplier means their products are shipped direct to stock without inspection. I need to define the roa map to get there. Any help is appreciated.
JDB

 

[Stijloor]

Re: Supplier Certification Programs

I am also tasked with creating a certified supplier program for my company. Does anyone have a procedure or document that can help me get started?
I expect certified supplier means their products are shipped direct to stock without inspection. I need to define the road map to get there, Any help is appreciated
JDB

You may want to look at a PPAP (Production Part Approval Process) that is used in the automotive industry. Also look at threads here associated with supplier selection and monitoring. Scroll down this page, and you'll find some links.

Stijloor.

 

[red66climb]

Re: Supplier Certification Programs

This is a strong supplier evaluation program. This is a great example to follow as best practices.

 

[red66climb]

Re: Supplier Certification Programs

Prior to working in the medical device industry I worked in automotive. The PPAP process forces suppliers to do a great job of planning and validation prior to launching a new product for customers. This PPAP process also requires that suppliers perform an in-depth process risk analysis (pFMEA) for all production processes and the auto industry requires use of 8D's to address SCARs.

There are similar examples of strong supplier certification programs in consumer products (i.e. - P&G), medical devices (i.e. - Medline), and aerospace companies (i.e. - Boeing). All three examples use supplier scorecards and have rigorous processes for supplier re-evaluation. P&G leverages suppliers used by sister divisions. Medline sends auditors to China to visit multiple suppliers during one trip. Boeing gives out some really fancy plaques that suppliers proudly display. Many companies are expanding the audit criteria to include safety, environmental concerns, and social concerns.