Developing An Effective Supplier Scorecard

By David Butcher, MasterControl

Supplier performance greatly affects the cost, quality, delivery, and responsiveness of a manufacturer’s business. For any manufacturer whose product quality relies in part on a supplier’s own product or service, the organization must be able to ensure or improve high supplier performance.

In the manufacturer-supplier relationship, direct communication between both parties helps deliver important changes or resolutions to issues. To that end, the supplier scorecard is an effective form of communication because it sets up a structured measurement of collaboration where the supplier always knows their score and how they’re trending. To ensure the success of their supplier scorecards, manufacturing organizations can actively help key suppliers develop an actionable plan for continuous improvement.

Since supplier scorecards are not one-size-fits-all, we have outlined some common process considerations when developing your supplier scorecard development.