- 29 January 2014
Supplier performance scorecards and supplier stratification modeling are related concepts, but very different in how they should be used. A supplier performance scorecard program should be used between an organization and its suppliers as a means of evaluating the performance of the suppliers against mutually agreed upon or accepted criteria. Supplier stratification should be an internal metric, where an organization takes other criteria (one of which can be the scorecard metric) and combines them to rank its suppliers (traditionally in an ABCD type model). The information below will help guide anyone wanting to implement either concept in their organization. Successful implementation of these concepts will have a positive impact on supplier relationships, operational efficiency, and improvement of EBITDA.
Cre8tive Technology & Design will be posting a weekly 3 part series on Supplier Performance Scorecarding and Stratification Modeling.
Part 1 – Supplier Performance Scorecarding (SPS)
- Common SPS Criteria
- Weighing Factors
- More Criteria
Part 2 – Supplier Stratification
- Why Stratify your Supplier Base?
- Best Practices Criteria
Part 3 – Conclusion
Follow this series and other previous postings on https://www.ctnd.com/blog/.