fedex supplier evaluation
Supplier Measurement helps FedEx Manage a Worldwide supply base
FedEx is one of the few companies that have realised that suppliers affect its total costs to a large extent. Hence, it has introduced measures like detailed supplier scorecard to evaluate supplier performance for goods, services and fuel. This supplier scorecard maintains a level of uniformity among the many supply management groups and is available to all its suppliers and employees through its intranet.
The scorecards for suppliers are maintained by buyers or supply chain specialists and the completed scorecards are stored in a central database so that they can be reviewed at any time. Based on these scorecards, supply chain analysts perform many analyses like identifying suppliers who fail to meet the delivery requirements. Hence, this measurement supports FedEx’s supplier development and improvement efforts.
Initially there was a separate scorecard template for each of goods, services and fuel which are now combined now into a single robust scorecard template. Buyers or the supply chain specialists who manage the scorecard of a supplier can adjust weights within the performance categories to meet the needs of purchase requirement.
Though the system is highly flexible to adjust category and weights, there are some sorecard rules that needs to be followed
The diverse supplier development performance category should be included in each evaluation as it is a corporate requirement
The sum of the selected weights should be 100
Calculating score of a category: Sub items in a category are scored from 0-5 and the average of the scores of the sub items gives the average score of the category. The average score of the category is then multiplied with the weight to get the total score of the category
The total scores of the categories are then added to arrive at a score between 0-500 representing the below designations
500-450 - Platinum
449-400 - Gold
399-350 - Silver
349-300 - Bronze
FedEx is one of the few companies that have realised that suppliers affect its total costs to a large extent. Hence, it has introduced measures like detailed supplier scorecard to evaluate supplier performance for goods, services and fuel. This supplier scorecard maintains a level of uniformity among the many supply management groups and is available to all its suppliers and employees through its intranet.
The scorecards for suppliers are maintained by buyers or supply chain specialists and the completed scorecards are stored in a central database so that they can be reviewed at any time. Based on these scorecards, supply chain analysts perform many analyses like identifying suppliers who fail to meet the delivery requirements. Hence, this measurement supports FedEx’s supplier development and improvement efforts.
Initially there was a separate scorecard template for each of goods, services and fuel which are now combined now into a single robust scorecard template. Buyers or the supply chain specialists who manage the scorecard of a supplier can adjust weights within the performance categories to meet the needs of purchase requirement.
Though the system is highly flexible to adjust category and weights, there are some sorecard rules that needs to be followed
The diverse supplier development performance category should be included in each evaluation as it is a corporate requirement
The sum of the selected weights should be 100
Calculating score of a category: Sub items in a category are scored from 0-5 and the average of the scores of the sub items gives the average score of the category. The average score of the category is then multiplied with the weight to get the total score of the category
The total scores of the categories are then added to arrive at a score between 0-500 representing the below designations
500-450 - Platinum
449-400 - Gold
399-350 - Silver
349-300 - Bronze