A supplier scorecard is a simple, regular grade for each supplier, built from what happened on their deliveries: did it arrive on time, was it complete, was the quality right, did it come with the lot codes and documents you need, and was the price what you agreed. Check those five things on every delivery with a yes or no, and once a month each supplier gets a percentage on each, a weighted score and a grade. In the example below, a mill scores an A, a dairy a C for late deliveries and an unannounced price rise, and a packaging supplier a D for short, late, undocumented shipments. Below is what to score, how to weight it, the example worked through, what to do with the grades, and a free template.
The short version
- Check five things on every delivery: on time, complete, quality, documents, price.
- Mark each yes or no; don't overthink it.
- Monthly, work out each supplier's percentage on each check.
- Weight them by what matters to you, and turn the total into a grade.
- Talk to a C supplier; find a backup for a D.
- Use the grades in your reorder decisions and price negotiations.
- TaroStack keeps the facts a scorecard needs from every delivery you receive. More below.
What to score
| Check | Yes when | Why it matters |
|---|---|---|
| On time | Arrived on or before the promised date | Late deliveries mean safety stock and rush orders |
| Complete | Everything ordered arrived | Short deliveries stop production |
| Quality | Nothing rejected or held on arrival | Bad stock is waste and risk |
| Lots and documents | Lot codes on cases, certificates where you need them | Traceability and your food safety plan |
| Price as agreed | Invoice matches the order | Creep is quiet margin loss |
Score from records, not memory: the order, the receiving check, the invoice. How to check a delivery and an invoice against the order is in what should a purchase order include.
Weighting
| Check | Weight |
|---|---|
| On time | 25% |
| Quality | 25% |
| Complete | 20% |
| Lots and documents | 15% |
| Price as agreed | 15% |
Adjust to your business. If a late delivery stops your kitchen, give on time more; if you sell to grocers who audit traceability, give documents more. Keep the weights the same for a few months so the grades mean something.
Three suppliers, worked through
Windward Roots, the made-up taro business I use in these examples, scored two deliveries from each of three suppliers in September and October (the suppliers are made up too):
| Supplier | On time | Complete | Quality | Documents | Price | Score | Grade |
|---|---|---|---|---|---|---|---|
| Valley Mill | 100% | 100% | 100% | 100% | 100% | 100% | A |
| Island Dairy Supply | 50% | 100% | 100% | 100% | 50% | 80% | C |
| Upland Packaging | 50% | 0% | 100% | 50% | 50% | 53% | D |
Island Dairy 0.50 × 25% + 1.00 × 20% + 1.00 × 25% + 1.00 × 15% + 0.50 × 15% = 80%
Upland 0.50 × 25% + 0.00 × 20% + 1.00 × 25% + 0.50 × 15% + 0.50 × 15% = 53%
The dairy was two days late once and raised its price by 20 cents a pound without notice. The packaging supplier was a week late on one order, short a carton on both, shipped cartons with no lot codes once, and overbilled once. Grades from A (95% or more) down to D (under 70%).
What to do with the grades
| Grade | Action |
|---|---|
| A | Keep; consider giving them more volume |
| B | Mention the misses; nothing more |
| C | A conversation: what happened, and what changes |
| D | Find and test a backup supplier; keep a bigger buffer meanwhile |
For a D supplier you can't replace quickly, hold more safety stock until things improve: the method is in safety stock formula, and how real lead times compare with promised ones in lead time calculation formula.
Get the template
Download the supplier scorecard. The Deliveries sheet works out days late and on time from the promised and received dates, with yes or no for the other four checks and any no in red; the Scorecard sheet works out each supplier's percentages, a weighted score and a grade, with the weights in cells you can change. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
A scorecard is only as good as the checks behind it, and checks done by hand at the back door get skipped on busy days. The promised date is in an email, the short carton in someone's memory, the price rise noticed three invoices later. By the end of the month, the scorecard is filled in from impressions, and the supplier you like scores better than the one who delivers.
How TaroStack does it
TaroStack keeps the facts a supplier scorecard needs from the deliveries you're already receiving.
On time, from real lead times. Each supplier has its promised lead time, and TaroStack compares it with how long their deliveries really take, offering to correct the lead time where you read it. The reorder list uses the real one, with a red line where an order placed today would arrive too late.
Complete, quality and documents, at receiving. Deliveries are received against the purchase order, so a short line stays open until the rest arrives or you close it short, and over-receiving is caught and flagged. Lines can go straight into quarantine or a damaged pile, and lots can be held or rejected. Scanning a supplier's GS1-128 case label fills in its lot and use-by date, and a delivery with no lot codes is obvious when you try.
Price, from every delivery. Each delivery is received at the price on the order, from the supplier's price list, and a buying-costs and price-creep report per supplier shows who's been nudging prices up.
| Check | By hand | In TaroStack |
|---|---|---|
| On time | Dates in emails | Promised vs real lead times, per supplier |
| Complete | Someone's memory | Short lines open on the order |
| Quality | A note on the delivery slip | Quarantine, held or rejected lots |
| Price | Noticed on the third invoice | Price creep, per supplier |
Suppliers with lead times, purchase orders, receiving, lots and the price-creep report are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.