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Supplier scorecard

A supplier scorecard is a monthly report card for each supplier that puts quality, delivery and responsiveness into numbers both sides agree on, so supplier reviews start from data instead of impressions. The usual measures are PPM (parts rejected per million received), on-time delivery percentage, how quickly the supplier answers a supplier corrective action request (SCAR) and how many SCARs are still open. Each measure is turned into points against a target, and the points are weighted and added into one score with a rating. Page 1 of this template is a year for one supplier: the month's parts received and rejected, PPM, deliveries and on-time percentage, SCARs issued and open, average days to respond, points per measure, score and rating. Page 2 explains how points are worked out, has a targets and weights table with example values, a worked example and a chart to plot the score. The Excel version keeps the targets and weights on a settings sheet, scores every supplier every month, leaves a measure out of the score in a month with no data, and has a twelve-month card per supplier with charts and a ranking of all suppliers for one month.

Free to use: print it, copy it and edit it for your team. Enter your name and work email once to download.

Page 1 of the supplier scorecardFields for supplier, code, commodity, year, buyer and quality engineer, and a table with a row per month for parts received and rejected, PPM, deliveries, on-time %, SCARs, response days, points per measure, score and an A, B or C rating.
PPMOn-time delivery %SCAR response daysOpen SCARsPoints per measureWeighted score and ratingTwelve-month trend

When to use it

When to use a supplier scorecard

  • For monthly or quarterly reviews with your main suppliers.
  • When deciding which suppliers get new business and which need development.
  • To show a supplier, with data, why they are on a watch list.
  • To see whether a supplier's corrective actions are working over time.

How to fill it in

  1. 1

    Choose the measures

    PPM, on-time delivery, SCAR response time and open SCARs are a common start. Agree how each is counted, such as the on-time window.

  2. 2

    Set targets, limits and weights

    Full points at the target, zero at the limit, and a weight per measure. Tell suppliers before the first scorecard.

  3. 3

    Collect the month's data

    Parts received and rejected from receiving and inspection, deliveries and on-time deliveries, and the SCAR log.

  4. 4

    Work out points and the score

    Points = 100 × (zero-points value − actual) ÷ (zero-points value − full-points value), kept between 0 and 100. Score = Σ(points × weight) ÷ Σ(weights).

  5. 5

    Share and review

    Send each supplier its scorecard and review the trend, not just the month, with the ones below the rating you want.

A filled-in example

Illustrative, not a benchmark

An example month for one supplier, with example targets and weights (illustrative numbers).

The example month, measure by measure

  1. Quality (weight 40): 800 PPMLowest68.6 points
  2. Delivery (weight 30): 94% on time69.2 points
  3. Response (weight 15): 8 days80 points
  4. Open SCARs (weight 15): 175 points

Score = Σ (points × weight) ÷ 100

  1. (68.6 × 40 + 69.2 × 30 + 80 × 15 + 75 × 15) ÷ 100= 71.4
Rating (A from 85, B from 70)B

Quality 68.6 points with weight 40, delivery 69.2 with weight 30, response 80 with weight 15, open SCARs 75 with weight 15. Weighted score 71.4, a B.

Quality carries the largest weight and lost the most points, so the review started with the PPM.
  • Quality: 800 PPM against full points at 250 and zero at 2,000: 100 × (2,000 − 800) ÷ (2,000 − 250) = 68.6 points.
  • Delivery: 94% on time against 98% and 85%: 69.2 points. Response: 8 days against 5 and 20: 80 points. One SCAR open against 0 and 4: 75 points.
  • Weights 40, 30, 15 and 15: (68.6 × 40 + 69.2 × 30 + 80 × 15 + 75 × 15) ÷ 100 = 71.4.
  • With example rating bands of A from 85 and B from 70, the supplier is a B.

The review focused on the PPM, which cost the most points, and the supplier agreed a containment check on the defect behind it. The next three months were watched for a change in the trend.

Common mistakes

  • Changing the rules mid-year

    If targets or weights change, scores before and after cannot be compared. Change them at the start of a year and say so.

  • Scoring a month with no data

    No SCARs to answer is not a perfect or a zero score. Leave that measure out for the month.

  • Measuring what the supplier cannot see

    Share the data behind each score, or the supplier will dispute it instead of acting on it.

  • Only looking at one month

    One bad month can be noise. Act on the trend over several months.

Download the template

Free to use: print it, copy it and edit it for your team. Enter your name and work email once to download.

Run this template in LeanSuite

In LeanSuite every inspection and SCAR feeds a live supplier scorecard with PPM defect rates and chargebacks by vendor, part or date range, and the days a supplier took to respond to each SCAR feed into its scorecard.

See it in a 45-minute demo

FAQ

Supplier scorecard: common questions

  1. Most start with quality (PPM or lot rejection rate), delivery (on-time percentage), responsiveness (days to answer a SCAR) and open corrective actions. Some add cost, chargebacks or audit results. Keep it to measures you can collect every month.

  2. Parts rejected divided by parts received, times 1,000,000. 8 rejects in 10,000 parts received is 800 PPM.

  3. Deliveries that arrived within the agreed window divided by all deliveries, times 100. Agree the window with the supplier first, for example up to 2 days early and none late.

  4. Give each measure 0 to 100 points against a target and a limit, multiply by its weight, add them up and divide by the total weight. Leave out a measure that had no data that month.

  5. Monthly is common for key suppliers, with a deeper review each quarter. Share the data behind the score so the supplier can check it.

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