Internal Supplier-Customer


Marla Diaz

This refers to our procedure on the inter-departmental needs (Key Result Area) based on supplier-customer relationship (9k2k).

What other method can we use in which regardless of the transactions (air/sea freight forwarding) in a month we will be able to accurately grade our internal suppliers' performance based on the infractions, with zero infraction as the perfect score. Our current method of averaging seems to be less accurate in measuring quality once the number of transactions increased in a certain month as the errors become negligible.


Al the Elf



Your post raises all sorts of issues. My first thought is that variable monthly activity usually requires rolling averages over longer time periods e.g. 6 monthly moving average, to give the data points some realtion to each other.

But then I got thinking about what is really important to you in dealing with this supplier. Is it really average number of infractions ? If your target is zero, then every one is a big deal. But how bigger deal is it ? Big enough that you'd pay twice as much to avoid it ? That's got to depend on the how important this supplier activity is to your delivery for your customers.

Your performance measure may be easy, but I could guess there is an overlay which says some of the infractions are reasonable (vs cost or an array of other criteria you consider to be acceptable) in your eyes and others are not.

Hope this helps...
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