Supplier Evaluation & Performance Management Flashcards
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Read the first 7 Supplier Evaluation & Performance Management flashcards as text
What is the primary purpose of a supplier scorecard?
Answer: To track and measure supplier performance against defined criteria
A supplier scorecard tracks and measures supplier performance against predefined criteria such as quality, delivery, and cost to support objective evaluation.
Which metric specifically measures the percentage of purchase orders delivered on or before the requested date?
Answer: On-time delivery rate
On-time delivery rate measures the percentage of orders received on or before the agreed-upon delivery date, directly reflecting a supplier's schedule reliability.
What does TCO stand for in the context of supplier evaluation?
Answer: Total Cost of Ownership
Total Cost of Ownership (TCO) encompasses all costs associated with acquiring and using a product, including purchase price, transportation, maintenance, and disposal costs.
A supplier's defect rate is most commonly expressed as:
Answer: Defects Per Million Opportunities (DPMO)
Defects Per Million Opportunities (DPMO) provides a standardized, scalable quality measure that allows fair comparison of defect rates across different suppliers and production volumes.
What is the primary purpose of a Request for Information (RFI) in the supplier evaluation process?
Answer: To gather general information about supplier capabilities before issuing an RFP
An RFI is issued early in the procurement process to collect general information about supplier capabilities, capacity, and experience before writing a detailed Request for Proposal.
Which of the following best describes a 'preferred supplier' designation?
Answer: A supplier who has been pre-qualified and receives priority consideration for new business
A preferred supplier has met pre-qualification standards and demonstrated reliable performance, earning priority consideration when new purchasing needs arise.
What is the primary purpose of a supplier audit?
Answer: To verify that a supplier's operations, quality systems, and compliance meet required standards
A supplier audit verifies that a supplier's facilities, processes, quality systems, and compliance practices actually meet the buyer's requirements and applicable regulatory standards.