There is much ado about new retail supplier or vendor scorecards.

October 29th, 2014

Scorecards are not a new subject. The problem is that organizations try to make them so complex that they end up becoming useless.

Todays post is from Ron Southard, CEO at SafeSourcing Inc.

Do you remember bringing home your report card from school as a child and maybe even receiving an early warning that you were having problems a couple of weeks before the actual report card arrived. You worried and worried but ultimately it took you just a minute to view it and determine if you were in trouble when you got home or not. Some parents even gave rewards for good performance. These were your first look at scorecards. They were simple, easy to react too and easy to measure against over time.

The first goal of a supplier scorecard is to use the KISS method and keep it simple. Know what you are trying to measure and measure it. Don’t go adding things that have nothing to do with what your original goal was.

An example of a scorecard for a new supplier or vendor that was just awarded business from a reverse auction or other e-RFX event might include the following and not much more.

1. Objective Elements
2. Quality Elements 
3. Delivery Elements
4. Quote or Pricing Accuracy Elements

Unfortunately too many companies in attempting to simplify analysis create tools that support the phrase that a camel is a horse created by committee? The simplicity of the statement just emphasizes how ineffective a committee can be by having too many conflicting opinions that influence, grow or make unwieldy a potentially simple project like designing a new supplier or vendor scorecard.

Included in the four elements above for a new vendor are the following.

1. Did the award of business take place as described within the terms and conditions?
2. Did a contract get executed as described within the terms and conditions?
3. Were samples viewed, inspected and approved if required?
4. Did the supplier deliver the specification as bid?
5. Did the supplier deliver the product or service on time?
6. Did the supplier deliver the product or service at the price quoted?
7. did the product or service work as promised?

Don’t fall into the trap of measuring more than you need to. At the end of the day a score of 90-100 is still an A and a score of below 60 is an F. A quick look should still tell you if you are in trouble or not.

If you’d like to learn more about SafeSourcing’s dashboard and scorecards, please contact a SafeSourcing Customer Services Account Manager.

We look forward to and appreciate your comments.

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