Survey on Supplier Quality
At the request of a member, the Quality Council surveyed the membership about supplier quality. Respondents reported that their supplier base was equally divided between domestic and international companies. The vast majority of firms have more than 100 suppliers, with 2/3 reporting as having more than 500 suppliers. Most companies vet the supplier base before the first site visit. SAP and in-house applications dominate among platforms to collect supplier quality data. Virtually all companies deploy supplier quality scorecards. The procurement department manages scorecarding in two-thirds of companies surveyed. Quality, delivery, and cost dominate among the metrics used to measure overall supplier performance. CAPs, PPMs, and defects are the top three KPIs used to gauge supplier quality. Complete and on-time predominate among the delivery metrics. Supplier development participation is cited by two-thirds of respondents as their preferred partnership metric. Unit costs and cost reduction opportunities are the two most important metrics in the cost category. Only a third of respondents require a current ISO 9001 certification from suppliers.