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Business Score card


Ba 339
Supplier Scorecard
We deal in electronics goods and the purpose of this supplier scorecard is to analysis and decides the best suppliers for our products. The key products for which we will make supplier scorecard include the followings:
1. Laptops
2. LEDs
3. Cell phones
The suppliers’ key performance indicators and their weighted are as under:
KPI Weight
Price 30%
Quality 40%
Delivery 10%
Reliability 20%

Price: We have given 30% weight to price because price is one of the big sources of earnings. Higher price result low profitability and low price result higher profitability. The points will be allocated to suppliers based on the target price as per following rules:
• If the supplier quoted price is equal to target price = 100 points
• Any dollar increase in price than target = 100 – 1
• Any dollar decrease in price than target = 100 + 1

Quality: In electronic industry quality of product is one of the sources of business success and increasing customer loyalty. So I have given 40% weight to quality. The performance measurement will include the supply of quality product as mentioned in the contract. The point will be allocated as under:
• High quality = 100
• Medium = 50
• Low = 0
Delivery: The third indicator is the delivery of products from the supplier. The performance measures include the delivery of goods on time, in full and with no damage. The point will be allocated as under:
• Delivery on time + in full + no damage = 100
• Delivery on time + In full = 80
• Delivery on time + no damage = 70
• In full + no damage = 60

Reliability: The last performance indicator is supplier reliability and customer services. It also includes the suppliers attitude to attend urgent orders and delivery on time. Points will be allocated as under:
• Highly reliable = 100
• Medium reliable = 50
• Low reliable = 0

Based on this analysis, only top three ranked supplier will be selected for future purchases of the company.

SKU: 100600 Category: