Abstract

Walker Manufacturing has developed a rating system for their suppliers based on the following criteria: (1) Quality, (2) delivery, (3) price, and (4) supplier support.

A cross functional team to rate suppliers was developed and studied rating systems used by other benchmark companies. All eventually agreed upon Quality, based on a system evaluation and ongoing performance, Delivery, based on quantity and timeliness,Price, based on best price and price trend, and supplier support. Weighting was Quality, 35%, Delivery, 35%, Price, 20%, and Supplier support at 10%. Each category was further broken down into weighted areas. Suppliers are rated at Approved, Preferred, or Certified depending on their score.

Not only has this program increased quality of suppliers and the companies products, but increased communication between the company and its suppliers has contributed to greater understanding of each others situation and needs. This has resulted in a more realistic planning and execution process, better able to cost effectively meet everyone's needs.