Using Scorecards for Supplier Performance Improvement: Case Application in a Lean Manufacturing Organization

Abstract: Improving supplier performance is a challenge faced by many organizations. This article describes one mechanism, the supplier score card, for supplier performance improvement. Five steps for supplier scorecard design and implementation are presented. These steps are based on the design and implementation of a supplier scorecard process in a medium-sized, ISO 9001:2000 certified metal fabrication manufacturer. A three-part scorecard was developed and implemented at the case study site. Through this case example, the challenges to the design and implementation are discussed to provide engineering managers with information to assist in the development of an effective supplier scorecard process in their own organizations.