Supplier Scorecard, Assessment of Pass Through Items From Sub Tier Suppliers

Dr.mr555

Starting to get Involved
#1
Hello,

I'm trying to determine how or if I should score pass-through items on a top-level supplier scorecard. One of our suppliers uses a sub-tier supplier that provides components that are incorporated into top-level assemblies that are then delivered to us.

There are occasions when the sub-tier supplier is contracted by the top-level supplier to deliver assemblies directly to us, essentially a pass-through item from the top-level supplier.

I'm wondering if it would be appropriate to score sub-tier nonconformances against the top-level supplier. In the past, I have removed the sub-tier supplier PO line items and NCRs from the top-level supplier scorecard. The problem in doing so is there's no accountability for the sub-tier supplier.

Any guidance would be appreciated!
 
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SpinDr99

Involved In Discussions
#2
The sub-tier supplier is merely drop-shipping to your company. You have no purchase order with that supplier so the answer to your question about scoring the sub-tier supplier is "No".

If your company is inspecting and assembling those components for the top-level supplier, you're providing a service and the top-level supplier should be paying for that service.

If you're identifying non-conforming products (because they won't assemble) from the sub-tier supplier, that needs to be worked out with the top-level supplier.
 

Dr.mr555

Starting to get Involved
#3
The sub-tier supplier is merely drop-shipping to your company. You have no purchase order with that supplier so the answer to your question about scoring the sub-tier supplier is "No".

If your company is inspecting and assembling those components for the top-level supplier, you're providing a service and the top-level supplier should be paying for that service.

If you're identifying non-conforming products (because they won't assemble) from the sub-tier supplier, that needs to be worked out with the top-level supplier.
Thanks for your response!

To clarify a bit, We're the customer. The lower level sub-tier supplier normally supplies an intermediate supplier which is our Contract Manufacturer. I'm trying to determine how to score the intermediate supplier (CM) that has received a PO from us the customer for the non-conforming item drop shipped from the lower level sub-tier supplier.
 

howste

Thaumaturge
Trusted Information Resource
#4
I think it depends on what you want to learn from the data. Do you care about their sub-supplier's performance? Technically your supplier is responsible for all of the product coming from them or their supplier no matter where it's made. From that standpoint combining the data will give you the overall picture of their responsibilities.

I think that I'd like to look at the data separately for a time period and see if there's a significant difference. If there's no real difference just combine it. If there is a difference then you could follow up and ask for improvement in whichever side has issues.
 

Eredhel

Quality Manager
#5
I'll second what howste said. We are in a situation where our customer purchases machined assemblies from us that include sole sourced items from their approved vendors. Currently the customer wants to handle quality on those items so we just let them know when an issue becomes apparent and they decide how to proceed. They do miss out on some metrics though, as we aren't going to send them an email with NCRs for 1 super cheap "thing" out of 20,000 "things" that have a minor problem. But they are aware of that and that's how they prefer it to be done as well.
 
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