Metalcraft Case Study

Metalcraft Supplier Scorecard

Question 1:

• What are the strengths and weaknesses of the supplier scorecard at Metalcraft?

 Strengths of the supplier scorecard at Metalcraft:

1. A centralized system that aggregates suppliers’ performance data in one location.

2. Flexibility in system against isolated events and geographically dispersed plant locations.

3. Shows clear indicators of suppliers’ performance based on the main inputs: quality, timing and delivery.

4. Basing supplier selection decisions on hard-data.

5. Resulted in substantial increase in quality.

6. Scorecard is updated in real-time.

7. Increased level of information sharing.

8. Ease of accessibility since it is a web-based system and can be accessed via the internet from anywhere.

 Some believed the scorecard was too number driven and there needed to be a more through checking into issues before suppliers were penalized.

5. Other Users: - such as Product Engineers, Manufacturing Engineers, and Metalcraft’s Managers.

 Strengths: - “Many other employees at Metalcraft could potentially use, and some did use, the scorecard system on a casual basis” (p. 9) showing the usefulness of the scorecard across the organization.

 Weaknesses: - There is a lack of awareness of the terms and acronyms used in the supplier scorecard thereby making it difficult for everyone to use.

In our opinion, it is necessary to get the various participants to agree on a mutual objectives serving the best interests of all parties involved and aligned these objectives with the company corporate strategy.

Question 3:

• How would you improve the scorecard and its implementation? In your response, describe why this will cause improvement.

There are several areas that can be looked at with the objective to improve the scorecard and its implementation:

1. Give purchasing agents fixed salary and instead have a bonus based 60% on quality and 40% on cost

Include a new criteria in the area of innovation and sustainability.

3. Allow suppliers to provide their comments and feedback by adding a comment section.

4. Training on the usage of Metalcraft scorecard.

5. Awareness session on Metalcraft Scorecard.

6. The Weighted Point Method: in the selection process.

7. Base the performance evaluation on both quantitative and qualitative.

8. Weighted scorecards that reflect importance of ranked area.

9. Standardized Procedures for use of scorecard.

10. Training for managers on scorecard use.

11. Methodology for dealing with 1 time problems.

12. Methodology for supplier to challenge rating given by Metalcraft.

13. Implement a methodology to improve the suppliers and give them a second chance.

14. Record previous bids.

15. Distinguish the “Yellow” and “Green” indicators from each other as they are referred to as (Non-Preferred).

16. Incorporates suppliers’ soft skills as a criterion in Metalcraft’s scorecard when it comes to making sourcing decision.

17. Provide and acronym and supplier codes dictionary so as to insure better understanding of the