ABC Inc. Robert Singh is the new hired supply chain manager in ABC inc, at the first management meeting in July, 2018 for discussing the supplier scorecard, the quality manager Emily mentioned: "Supplier scorecard data is provided at each meeting, and for the most part, everything always looks fine. However, I know that we have ongoing quality and delivery problems with some of our suppliers. It is time to evaluate our supplier scorecard and decide if changes are needed." As the business grow rapidly, the CEO of ABC commented: we like you to take a fresh look at our supplier scorecard and give us your feedback and recommendations regarding potential changes at the new meeting in Nov. Table1: Current supplier scorecard system Supplier: Scorecard Target Weight Target Score Maximum Points Area Quality Key Performance Indicator (KPI) Fit for purpose Compliant to specifications 40% 5 5 4 Delivery 40% In full On time Secureo damage TO RFOS To issues after PO is placed 4 3 3 4 Responsiveness 20% 5 5 2 Table1: Current scorecard-supplier record from June to Aug Supplier June August D Q" D" R Q" R Overall 92% 100% 32% 20% 40% 20% 20% 20% 36% 20% 36% 14% July Q" D R 40% 32% 20% 40% 32% 20% 32% 20% 18% 40% 40% 20% 40% 40% 20% Overall 92% 92% 70% 100% 100% Overall 84% 92% 60% 100% 100% 32% 32% 20% 40% 32% 20% 32% 20% 8% 40% 40% 20% 40% 40% 2096 72% 96% 90% 36% 88% 92% 20% 40% 12% 40% 20% 40% 20% 32% 36% 20% 40% 40% 12% 40% 40% 20% 40% 40% 20% 88% 92% 100% 100% 32% 40% 20% 40% 40% 20% 40% 40% 20% 40% 40% 20% 92% 100% 100% 100% 92% 100% Martin Foundry 40% JBR Foundry 40% Lawson Foundry 32% NLX Bearings 40% Mitchell Plastics 40% Hoffman Electronics 32% Scott Extrusions 40% Collins Fasteners 32% Innes Electrical 40% Miller Electronic 32% 40% Tilden Exhibits 40% EGT Extrusions 40 TECH Electronics 40% PKL Connectors 40% Fletcher Machining 40% Average Services Rexel Foundry 32% 20% 36% 20% 40% 20% 32% 20% 40% 20% 40% 20% 84% 96% 100% 9296 1009 100% 32% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 20% 2096 20% 2096 20% 20% 92% 100% 100% 100% 100% 100% 28% 40% 20% 4096 40% 2096 40% 40% 20% 4096 40% 20% 28% 40% 20% 40% 32% 20% 88% 100% 100% 100% 88% 92% 40% 20% 100% 40% 40% 20% 100% 36% 40% 20% 96% 88% 90% 88% "Q - Quality, D Delivery: R Responsiveness Suppliers are rank ordered on the scorecard report based on dollar volume of purchases Robert described how the supplier data was collected and how the scorecard was used: "The supplier score-card measures are mainly subjective with the exception of compliance to specification in the quality section. Scorecard data was not communicated to suppliers, and the quality department determined if there was reasonable cause to initiate a meeting with a supplier based on poor performance." The new supplier scorecard developed by Robert would measure two areas, delivery performance, and conformance to specifications, split equally. Robert proposed that any supplier with a delivery score under 60 percent would be required to provide a root cause and corrective action report at a meeting with the buyer. Issues related to quality performance would be addresses by the quality department, including providing corrective action reports. Meetings with suppliers to address quality issues would be held at the discretion of the quality control manager and would involve purchasing as required. Robert felt that the new scorecard would hold both the suppliers and buyers accountable. He also liked that the new system would measure performance for all suppliers. Table 3: proposed supplier scorecard-Martin Foundry Supplier Month: September Martin Foundry Reviewed by: Richard Ramsden Supplier contact Osman Peters Points This month 92% Overall Score B This Month (%) B D Metric On-time delivery (%) Parts accepted (%) Overall (%) Weight 50% 50% 100% 100% 90-100% 75-89.9% 60-74.9% >98% 95-97.9% 90-94.9% 95-100% 90-94.9% 85-89.9%