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The concept of utilising a rating system for suppliers, which is usually referred to as Supplier Rating System (SRS) or even a vendor rating, is a way in which businesses can ensure that their suppliers are delivering and/or capable of delivering what is required and that quality assurance is built in as standard.The system is used to measure performance of existing suppliers so that any poorly performing suppliers can be removed from being an approved supplier.
SDP - supplier delivery performance, This process is used to rate the supplier based on schedule.
This will help to improve the supplier performance by highlighting their issues.
for Ex: Your giving4 week schedule to a supplier (25 pcs of X item per week ) - if they deliver25 pcs every week on time with good quality ( No rejection or rework or excess or shortage ) means you can give100 per delivery performance.
Please go to http://kpilibrary.com/.. There you will find KPI related to supplier performace management. You can choose from a variety of KPI and it will indicate the methodology and context for using them.
Hope this helps your quest for excellence !!!
Modern Vendor Rating concepts are described as SRS, Supplier Rating System. This can be better achieved by applying the following criteria in any business.
1. Quality of the Materials
2. Timely delivery and following the delivery schedule in time.
3. Comparatively better price in the market
4. Care and service levels
5. Flexible and smooth negotiations
6. Very less Rejection or Non-conformity ratio
7. Manageable capabilities to meet any Timely requirement
Muthuvel
Material Control Superintendent,
Kharafi National LLC
- Tmely delivery
- Percentage of rejects
- Easy to do business with
- Price performance
In simple words Quality, price, capability, commitment and reputation are the key factor
Delivery on time & quality of material delivered are tw factors that decide the performance of supplier.
Evaluation of delivered projects(past and present) if conformed to clients requirements
Dun&Bradstreet website
From my experince there are3 concepts as below for all suppliers we deal with :
1) Delivery on time.
2) Quality of Material.
3) Prices within the market same products either local or overseas.
Delivery in time and the quantity and quality of products are the major key factors keep in mind while giving ranking to vendors
