Creation of a supplier scorecard

Abstract

Company XYZ is a European company founded in the mid 1970's. From its creation Company XYZ has grown from a small company to a global, and diverse organization with presence in more than 30 countries across the world. A recently acquired business unit located in the Midwest identified the need to develop a supplier performance management tool to align operations with strategic partners to support growth strategies and competitiveness in the market. Company XYZ initial approach was to design a tool that could be used to evaluate suppliers who provide raw and direct materials for the operation. An internal and external analysis was performed to identify metrics most commonly used by best in class organization across industries, find a commonality that could be used for the definition of the metrics utilized on the design of a supplier performance management tool for Company XYZ.