No Surprises

Abstract:Intermec Technologies Corp. reviewed its supplier performance program, asking if it measured the right metrics, if suppliers had the information to assess their own performance and if suppliers understood Intermec’s expectations. The existing performance metric was percentage of defects. The review discovered that the amount of time lost due to these defects and due to failure to meet packaging specifications was an important factor the company was overlooking. Intermec developed a new supplier performance formula that integrated time lost due to supplier defects or packaging issues as well as the percentage of defective material. It also incorporated electronic real time reporting of supplier performance, giving suppliers immediate awareness of problems. The real time reporting identified potential problems in supplier communication as well. Intermec began attaching packaging specifications to the automatic correspondence sent when a packaging error occurred, and a team member visited two …

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This article points at important issues that companies normally miss. Case studies such as this with recommendations will help the readers to look at ways to improve relationships between suppliers and customers.
--zahra Mousavi, 08-27-2011

Very good case study. I'm working at a company that needs to clarify supplier expectations, and this is very important to meet customer compliance.
--Omar Carmona, 04-13-2011

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