Supplier Quality Development Program/Performance Rating
I. What is the Supplier Quality Development (SQD) Program?
A. Primary Components of SQD Program
B. SQD Key Strategies
C. SQD Representative Responsibilities
II. Vision/Mission/Goal
III. SQD Supplier Expectations
IV. Supplier Quality Rating
A. Supplier Scorecard
1. Why is it important?
2. How do I access the information?
3. Supplier Scorecard Manual
B. Audit Score
C. Corrective Action Follow Up (CAPA Rating)
D. What are considered poor ratings and what happens if I have poor ratings?
1. Supplier Quality Improvement Plan
a. Why would I receive one?
b. What does it look like?
I. What is the Supplier Quality Development (SQD) Program?
A. Primary Components of the SQD Program
Supplier Quality Development (SQD) is a strategically focused program that is aimed at:
· Driving quality
· Continuous improvement
· Lowering total cost for the company as well as the supplier
The SQD team is aligned with the Sourcing Strategy Teams and is composed of members of Quality Assurance from both the Ada and Nutrilite facilities.
Return to Top
B. SQD Key Strategies
· Development: Partner with new and existing ABG Suppliers to drive continuous improvement activities in the suppliers’ manufacturing processes, quality systems, and customer service to achieve measurable improvement in quality.
· Performance: Systematically identify opportunities to improve supplier performance and proactively develop/drive Supplier Performance Improvement Plans to achieve measurable improvement in supplier product quality, on-time delivery, and total lowest cost.
· Prevention: Proactively assess supplier manufacturing and quality capabilities, minimize potential risks, and ensure the effective implementation of ABG Quality Expectations to achieve on-time, on-target launches and exceptional supplier quality.
Return to Top
C. SQD Representative Responsibilities
· Partner with Suppliers to improve quality
· Participate in Strategic Sourcing Teams (SST)
· Support the sourcing of new materials and suppliers
· Advanced Quality Planning on new product initiatives
· Conduct supplier quality audits
· Manage Material Certification Program
· Manage raw material and product non-conformance
· Complaint data analysis and reporting
Return to Top
II. Vision/Mission/Goal
VISION: To build a foundation for world class quality through supply-based continuous improvement activities.
MISSION: To proactively drive supplier quality development to deliver quality materials and products on time and on target.
GOAL: The ultimate goal is to drive improved quality starting at the supplier, which drives continuous improvement and a lower total cost of ownership for all involved.
Return to Top
III. SQD Supplier Expectations
We want our suppliers to continually focus on quality improvement.
To continually drive supplier quality development and maintain or exceed the 99% quality expectation, our team is willing to work with you to proactively achieve this goal. However, for us to be able to assist you in the process, we also expect that our suppliers are engaged in the process and meet certain expectations. These expectations are:
ü Have effective and timely processes in place to implement corrective actions and quality improvements
ü Focus on continued quality improvement
ü Have identified and available quality resources
ü Share best practices
ü Share data to reduce inspections
ü Attention to audits and follow up actions
ü Good communication
Return to Top
IV. Supplier Quality Evaluation Tools
A. Supplier Scorecard
The quality rating is a rating that is calculated based on quantitative metrics that measure supplier performance in areas that have a significant impact on supply chain operations. These metrics are outlined on the supplier scorecard and accessible to the supplier via the Supplier Analytics password protected portal (a link to this application is provided on the Supplier Portal).
The Supplier Scorecard measures supplier performance using key supply chain metrics.
Return to Top
1. Why is it important?
The score received on the supplier scorecard is important because it determines whether the company will seek a long term or short relationship with the supplier.
2. How do I access the information?
Scorecards are available on the ABG Supplier Portal in the password protected Supplier Analytics section (For more information on Supplier Analytics please refer to the Supply Management > Supplier Analytics section of the Supplier Portal).
This information is also available from your SQD representative during the Quarterly Review or from your Procurement representative.
3. Supplier Scorecard Manual
For more detailed information on elements of the supplier scorecard, please take a look at the Supplier Scorecard Handbook on the Supplier portal under the Supply Management > Performance Evaluation section.
If you should have any additional questions, please contact your Procurement representative.
Return to Top
B. Audit Score
Audit scores are taken from the audit checklists and can vary depending on the kind of audit that is performed.
Please refer to the Business Requirements > Quality > Forms section of the supplier portal to access the ISO and GMP audit checklists.
Return to Top
C. Corrective Action Follow-Up (CAPA Rating)
This metric measures how effectively and timely a supplier responds to CAPAs from the time of receipt to successful control of the issue.
Return to Top
There are four areas that are measured on a scale of 1 to 5 (5 being the highest):
1. Timely Response
2. Effective Response
3. Timely Implementation
4. Demonstrated Control
Return to Top
D. What are considered poor ratings and what happens if I have poor ratings?
ABG expects that its suppliers have an overall quality rating of 99% or higher. We know that this is an ambitious target, so we are willing to partner with our suppliers to achieve this goal together.
For suppliers with quality ratings of less than 99%, a quality improvement plan will be created to help the supplier work towards the goal.
However, consistently poor ratings can also lead to a change in the suppliers’ segmentation, which affects the business relationship between the supplier and ABG. For more information on Segmentation, please refer to the Supply Management > Segmentation section of the Supplier Portal.
Return to Top
1. Supplier Quality Improvement Plan
Supplier Quality Improvement Plans are supplier goals that are created as result of quality reviews of less than 99%, or as needed. These goals are intended to help the supplier work towards and sustain the 99% or higher quality rating.
Return to Top
a. Why would I receive one?
Your SQD representative will discuss a quality improvement plan with you when a consistent problem is identified or if your quality rating falls below 99%.
Return to Top
b. What does it look like?
Below is a Supplier Quality Improvement Plan template. The highlighted portions of the template are key areas of the template.
A copy of this guide is also available under Business Requirements > Quality > Guides.
Return to Top
1
Version 2
Updated: April 2008