Training By: Mr.

Abdul
Raheem

Supplier
Performanc
e Evolution
 Purpose of Supplier Performance Evaluation

Why Evaluate Suppliers?

• Ensures product quality and consistency.

• Mitigates risks in the supply chain.

• Enhances overall operational efficiency.

 Strategic Sourcing
 Identifying potential suppliers.
 Negotiating contracts and terms.
 Ensuring alignment with organizational
goals.

Supplier Selection
 Evaluating supplier capabilities.
 Approving or rejecting suppliers based on
criteria.

Role of the Quality Control Supervisor

 Ensuring suppliers meet quality standards.

 Conducting inspections and audits.

Performance Monitoring

Responsibilities 

Regularly assessing supplier performance.
Collaborating with other departments for
feedback/
 •Supplier are classified as
Classification •Class 1A: Critical suppliers (e.g., sole source).
of the
•Class 1B: Routine suppliers (multiple
Supplier sources).
 Supplier Approval

QUALITY DELIVERY COST COMPLIANCE

STANDARDS. RELIABILITY. COMPETITIVENES WITH
S. REGULATIONS.
Supplier Evaluation
and Monitoring

•Rating System:

• A, B, C, D based on
performance.

• Use the Supplier Performance

Report (L4/QP.20/F1).
Conditions for Checks:

• Scheduled or surprise visits.

• Inspections of facilities, processes, and quality control.

Verification at Premises of UNIMED

Inspection Process:

• Upon receipt of products/materials/components.

• Ensuring compliance with specifications.
• Documenting findings.

Supplier verification
 PERIODIC EVALUATION CRITERIA RATING BASIS
S No Rating Basis

1 Delivery on Time
4 On time as per schedule
3 Delay of less than 2 week
2 Delay of less than 4 weeks
1 Delay of 4 weeks and above
0 Not Applicable
2 Receiving Inspection Result
4 delivery as per standards and specifications (zero defect)
3 delivery with minor defects (0.1 to 4.99%)
2 delivery with major defects (5 to 10%)
1 delivery rejected
0 Not Applicable
3 General Behaviour with UNIMED
4 Outstanding response
3 Responding above expectations
2 Poor response/service
1 Dreadful response/service
0 Not applicable
4 Response to Complaint
4 Same day
3 After two days
2 Within one week
1 More than one week
0 Not applicable
 Supplier Evolution criteria

Performance Metrics:
Supplier Evaluation Supplier Scorecards:
Establish key performance
Criteria: Define clear criteria Create scorecards that
indicators (KPIs) to measure
for evaluating suppliers. summarize supplier
supplier performance. These
Consider aspects such as performance. Include
could include on-time
quality, delivery time, cost, quantitative data, qualitative
delivery, defect rates, lead
responsiveness, and assessments, and any
times, and customer
compliance. corrective actions taken.
satisfaction.

Continuous Improvement:
Risk Assessment: Evaluate Supplier Segmentation:
Encourage suppliers to
supplier risks. Identify Categorize suppliers based
improve by providing
potential vulnerabilities, such on their strategic importance.
feedback and collaborating
as financial stability, High-risk or critical suppliers
on solutions. Regularly review
geopolitical factors, or may require more rigorous
performance and address any
production capacity. evaluation.
issues promptly.

Supplier Development: Transparency: Maintain

Invest in supplier open communication with
development programs. Help suppliers. Transparency
suppliers enhance their builds trust and facilitates
capabilities and align with better performance
your organization’s goals. management.
Conclusion

Recap key points:

• Supplier performance evaluation ensures quality
and efficiency.
• Supplier classification and approval are critical
steps.
• Ongoing monitoring and risk assessment are
essential.
• Transparencythe
Emphasize andneed for continuous
communication foster trust.
evaluation and improvement.