Supplier performance

Supplier performance can be measured over a period of time. The customer and the supplier can use the supplier performance measurement to identify the areas for process improvement. The Supplier Performance tests are grouped by categories. A customer can configure each test and category to provide a performance evaluation based only on the important issues.

After the supplier performance report is generated, the report can be published. The suppliers can review the published data. Each supplier can only view the performance ratings.

  • Categories The Supplier Performance can be measured based on various tests that are grouped by categories. The metrics can be selected at the test or category level. The metrics can also be customized based on the weight or importance assigned to each test.
  • Schedule Adherence by Quantity The schedule adherence by quantity category rates the suppliers meeting the requirement demand. The metric tests compare the quantity ordered with the quantity shipped by the supplier, based on the fulfilled schedules (those shipped against). The schedule adherence by quantity category includes tests such as On Schedule, Under Schedule, and Over Schedule. These tests can conflict with the Demerits Assessed test in the Delivery Performance Report (DPR) category.
  • Schedule Adherence by Date The schedule adherence by date performance category rates how timely suppliers fulfill demand. The metric tests compare the due date with the ship date or the receipt date. The comparison is based on the ASNs for ship-based requirements, receipts for delivery-based requirements and the fulfilled schedules and purchase orders. The schedule adherence by date category includes tests such as On Time, Late, and Early. These tests can conflict with the Demerits Assessed test within the Delivery Performance Report (DPR) category.
  • Receiving Accuracy The receiving accuracy category rates the accuracy of the supplier Advance Ship Notices (ASNs). The metric tests compare quantities and dates, based on ASNs and receipts. The receiving accuracy category includes tests such as ASN Accuracy (matching quantities), ASN Timeliness (ASNs published before receipt), and Receipts without ASN (no ASN sent).
  • Premium Freight Charges The premium freight category rates how well suppliers can fulfill demand without requiring expedited shipments. AETC, Premium Freight, or both must be used to track the expedited costs. The metric tests check for AETC numbers and responsibilities, based on ASNs. The excess transportation cost category includes tests such as Expedited Shipments and Supplier Responsibility.
  • Parts Per Million (PPM) The PPM category rates the suppliers on the delivery of the defect-free materials. PPM must be used to include parts per million metrics for supplier ratings. The sole metric test tracks the number of defective parts, based on the imported PPM files. These tests can conflict with the Issued test in the Defective Material Notice (DMN) category.
  • Defective Material Notice (DMN) The DMN category rates the suppliers on the delivery of the defect-free materials and the response to notices of defects. The metric tests track the number of DMNs and the supplier response with containment and corrective measures, based on DMNs. The DMN category includes the tests such as Issued (number of DMNs), Containment On Time Responsiveness, Containment Rejections, Corrective On Time Responsiveness, and Corrective Rejections. This test can conflict with the PPM test within the Parts Per Million (PPM) category.
  • Delivery Performance Report (DPR) The DPR category rates the suppliers on the delivery . The metric tests track the number of demerits generated by DPRs and the supplier response based on DPRs. The DPR category includes the tests such as Demerits Assessed (number of demerits created by DPRs), On Time Responsiveness. The Demerits Assessed test can conflict with tests in the Schedule Adherence and Delivery/Shipment Performance category.
  • Production Part Approval Process (PPAP) The PPAP category rates how well suppliers provide acceptable material for approval. The metric tests track the materials that are accepted or rejected for manufacture during the approval process based on PPAPs. The PPAP category includes the tests such as Accepted, Provisional, and Rejected.
  • Custom Metrics The custom metric category is customer-defined. There is no limit to the number of tests that can be created. The supplier performance in the custom tests can be imported or can be manually specified.