We currently rate our suppliers by taking the number of line items that they supply us and dividing it by the number of SCAR's issued. We then take their on-time delivery rating and multiply it times their quality rating to get an overall quality rating.
The problem with this system is that you could be rated in the high 90's and yet have 60 SCAR's issued against you for the year. Since we are striving for "continuous improvement" the high rating shows great performance, but the number of SCAR's bothers me.
Is there a better system out there for rating suppliers and focusing on continuous improvement?
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