The Road to Supplier Performance Excellence
DRiV uses the following criteria to rate the performance of our suppliers for all DRiV manufacturing and distribution facilities.
- Identification of continuous improvement and cost-savings opportunities
- Promote and encourage improved communication on performance issues
- Provide objective data for use in supplier management and sourcing decisions
- Recognition of exceptional supplier performance
These are the main groupings by which suppliers will be measured. The initial set of categories for which measurements will be compiled are Delivery, Quality and Supplier Cost-Saving Suggestions (SCSS). Each category has assigned weighting, which is rolled into the overall score. Category scores range from 0 to 100 points.
The Overall Rating is a description of the performance level of supply as viewed by DRiV. Scores for each category are multiplied by the weighting, and the summation entails the overall score for the supplier. Overall Ratings associated to the overall score are as follows:
Overall Rating Weighted Point Score:
- Preferred: 90 to 100
- Acceptable: 70 to 89
- Developmental: 0 to 69
“Preferred“ Supplier Rating:
- DRiV will work with these suppliers on new product development.
- DRiV will assist these suppliers in maintaining a competitive position.
- DRiV will maintain a listing of “Approved for New Business“ suppliers.
“Acceptable“ Supplier Rating:
- DRiV will allow new business but the supplier will be at a disadvantage to a “Preferred” supplier
“Developmental“ Supplier Rating:
- DRiV requires corrective action if the supplier is rated at this level for three consecutive months during the calendar year.
- The supplier must provide plans to improve performance to an acceptable level.
- DRiV will look at alternative sources if performance does not improve.
Supplier Rating Qualifications:
The rating system will entail any supplier deemed appropriate by the DRiV Manufacturing/Distribution Purchasing Team.
Supplier Scores and Category Weighting
There are two main categories by which suppliers are measured:
- Delivery 50%
- Quality 50%
A value is displayed in each category on the Global Scorecard for every DRiV facility receiving product(s) or service(s) from the supplier.
Quality Category: Rating Criteria
The Quality category is comprised of two components:
- Parts Per Million (PPM) 50%
- Quantity of supplier corrective action requests (SCARs) 50%
PPM is based on SCARs. Both the number of SCARs and PPM are reported monthly. SCAR responsiveness does not factor into the supplier’s Overall Score. Currently, it is only displayed on the Scorecard.
|PPM Count||Points||# of SCARs||Points|
Delivery Category: Rating Criteria
The delivery score is based on the average percentage across using plants for the current month. On-time delivery percentage has a window of one day early and zero days late to the due date and +/- 5% of order quantity. The on-time delivery percentage is determined by line items received on time divided by the number of line items due by the supplier for the month.
Consignment programs receive a 100% delivery percentage unless a stockout is caused. The score is reduced by 10% for each day of the stockout.