Reference no: EM133863332

Question

Supplier scorecards can be a beneficial tool for organizations that are looking to evaluate or reduce their supplier list. Supplier scorecards allow an organization to get a relative rating of how well their suppliers meet their desired requirements. Since scorecards can be customized they can look different for all companies however a general scorecard may keep track of on time deliveries, shorted deliveries, over-delivered orders, communication and etc. This gives a general understanding of what suppliers are meeting your requirements and which are not. Scorecards could also be shared with suppliers for transparency and even motivation for suppliers to improv their service. However, these scorecards could also be misinterpreted. For example, if multiple people are rating different suppliers then their scale may be slightly different than others leading to a misleading score. Scorecards could also be met by retaliation from some suppliers due to feelings of unfairness. Overall, I believe scorecards to be a beneficial tool to use to get a general understanding of your suppliers but they are not to rely on with 100% certainty.