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Supplier Score Cards – Creating Metrics and Searching for the Best in Class

October 2, 2017

At PGC, the importance in having a strong supply chain is evidenced every day that we are in business. This is shown in many ways, including communication on supplier’s portfolios, using technical services to help engineers, or supplying samples of new or raw material.  Every day, we depend on every transaction to reflect the best that those suppliers can offer.  In addition, because raw materials can constitute up to 50% or more of a parts unit cost, it’s important to have confidence that their costs are sensitive to the market dynamics of competition.

This information drives us to develop metrics. As the old saying goes, what gets measured, gets done! Because of this, we need to measure a supplier’s capabilities in several ways to decide on creating a partnership:

  1. Quality – their products and their services meet or exceed our expectations in engineering and manufacturing?
  2. Cost – are their prices competitive?
  3. Delivery – can they meet the demands of our customers and increase speed to market?
  4. Capabilities – Do they have state of the art transaction/accounting systems for fast order, acknowledgement, receipt and bill pay?
  5. Customer Service – Are they there when we need them to expedite an order or replace a defective shipment?

These are just a few of the important metrics that stand out to us. We pride ourselves on focusing on the who, where and the why in selecting new suppliers. It is not easy, but well worth the effort! PGC continually searches the world for new and different materials that solve sealing, adhesive needs, sound & vibration, and shielding application challenges.

Most of PGC’s searching is done through the internet now, which has the best representation of suppliers around the world.  In addition, we also attend trade shows, read trade magazines, and take recommendations from other suppliers or customers.  This strategy is extremely beneficial when we are trying to find new and exciting materials to create more innovative products and meet 21st century demands.

When we first partner with a new supplier, they are invited to visit our plant.  From there, we measure them in terms of financials, trust level, equitable future projection, and the like.  We also send employees to their facilities, to address and observe growth strategies, their infrastructure, and much more.

Overall, PGC is looking towards the future, using strategic thinking and relationships to get the next stage in our evolution as a world class manufacturing company.

 

Written By: Brett Strayer, Global Supply Engineering Manager

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