Abstract

Improving supplier performance is crucial in the highly competitive and customer-driven electronics industry. Conner Peripherals has used a supplier scorecard program to track the work of its vendors. Such a program requires internal support from management and from procurement, manufacturing, and other departments. It also needs a formal review structure. Conner holds quarterly and annual reviews with supplier representatives. Its scorecard is a matrix that anonymously ranks the suppliers. A maximum score is 100 points covering: quality (30 points), on-time delivery (20), lead time (15), process control and technology (14), product technology (10), technical support (6), and purchasing and material support (5). A multiplier between 0.5 and 1.0 adjusts each supplier's score to reflect how well actual price matches target price. In the first full year of the program, each Conner supplier improved its performance by at least 15%.