E-commerce companies need to formulate a comprehensive supplier performance management method, clarify the responsibilities and assessment standards of suppliers, and manage suppliers based on the assessment results. The following is a template of a supplier performance management method that e-commerce companies can refer to.
Supplier performance management method of an e-commerce company.
I. Purpose
Specify the assessment method for suppliers to ensure that the products they supply meet the requirements in terms of quality, delivery time, service, etc.
II. Scope of application
This method applies to all suppliers of various types of products.
III. Responsibilities
(1) The purchasing department is responsible for checking whether the products supplied by suppliers are qualified, checking the supplier change list, and handling product acceptance and rejection procedures. In addition, the purchasing department is responsible for quarterly assessment of the degree to which suppliers meet the requirements in terms of delivery time, service, etc., and keeping records.
(2) The quality management department is responsible for assessing the degree to which suppliers meet the requirements in terms of quality, keeping records, and communicating with the purchasing department.
(3) The quality management department and the purchasing department jointly summarize the above information, which will be announced by the quality management department on a quarterly basis.
IV. Supplier Assessment
(1) When a supplier’s product has quality problems, the quality management department needs to send a “Quality Information Feedback Record Form” to the supplier through the purchasing department, asking the supplier to analyze the cause and propose improvement measures. The purchasing staff is responsible for tracking the processing progress of the “Quality Information Feedback Record Form”, and the quality management department tracks the improvement effect of the problem and records it.
(2) The quality management department summarizes the supplier’s quality analysis data on a quarterly basis, and combines it with the evaluation of the supplier’s delivery date and service provided by the purchasing department to form a “Supplier Quarterly Assessment Report”.
(3) The assessment items and score ratios are as follows (full score 100 points).
Quality level: 50 points; delivery date: 30 points; service: 20 points
D Quality level (full score 50 points)
The quality level of the products provided by the supplier is mainly measured by the product failure rate. The calculation formula for the product sampling failure rate is as follows.
Product sampling rate of unqualified products = number of unqualified products in monthly sampling/total number of monthly sampling 100%
2 Delivery period (full score 30 points)
The purchasing department will score suppliers according to the stipulated delivery period, and the scoring method is as follows.
30 points for on-time delivery; 2 points for each delay of 2 days; 5 points for each delay of 3~4 days; 10 points for each delay of 5~6 days; no points for delay of more than 7 days.
3 Service (full score 20 points)
The quality management department and the purchasing department will score according to the service level of the supplier, and the scoring method is as follows.
“Quality Information Feedback Record Form” reply timeliness score: reply within 3 days to get 10 points; reply within a week to deduct 2 points; reply within 1~2 weeks to deduct 5 points; reply within 1 month to deduct 7 points; reply time exceeds one month to deduct 8 points.
Score for return and exchange of defective products: 10 points for replacement on schedule; 2 points for occasional delay; 4 points for frequent delay; 10 points for ignoring.
(4) The quality management department and the purchasing department sort out the data and classify the suppliers, as shown in Table 6-1.
(5) Supplier cancellation method
If the supplier’s first batch of products is unqualified, the quality management department shall issue a “Quality Information Feedback Record Form” to it; if two consecutive batches of products are unqualified, the “Quality Information Feedback Record Form” shall be issued to it again. When the third batch of products is still unqualified, the quality management department may apply for cancellation of supplier qualifications and terminate cooperation with it after approval.
The quality management department shall inspect the supplier’s production links from time to time. If major defects are found, a “Corrective Action Processing Sheet” shall be issued and the supplier shall be required to improve; if the supplier still fails to improve after the second inspection, the cooperation with the supplier shall be cancelled. If the supplier is rated E in the quarterly evaluation, the cooperation shall be cancelled; if the supplier is rated D, the quality management department shall issue a “Corrective and Preventive Action Sheet” to require the supplier to improve; if the improvement is ineffective, the cooperation shall be cancelled.
Tips
A perfect system can ensure the scientific nature of supplier performance management and make every decision based on evidence. Therefore, e-commerce companies need to pay attention to the formulation of supplier performance management methods.