Page 124 - DLIS006_INFORMATION SOURCES AND SERVICES

Unit 6: Document Delivery Services and Online Services

In particular, Supplier scorecards are an integral part of the supplier performance management Notes
process.

Notes It should define categories or groupings of metrics/KPIs by which suppliers will be
measured, such as, cost of poor quality, delivery cost, inventory cost, response index,
order fulfilment score, order visibility score, returns/charge-back score and can be extended
to custom categories such as vendor risk, innovation, customer complaints and corporate
social responsibility.

Figure 6.1: Supplier Scorecards

Source: http://www.metricstream.com/solutions/supplier_performance.htm
A proactive organization should integrate supplier performance scorecards with real-time data
to measure and identify key supplier related events, which could impact business operations
and revenue.

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Caution Supplier quality events such as supplier corrective actions (SCAR)/root cause
analysis, supplier audit findings and customer complaints should be linked with Quality
KPI in scorecards to enable a real-time quality score for suppliers.

Furthermore, scorecard metrics and KPIs should be well integrated with loss and supplier risk
management functionality allowing users to define multi-level thresholds and weighting for
every risk. Real-time integration of supplier scorecards with supplier quality and risk
management events will enable companies to give supplier ratings and generate executive

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