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Supplier Rating System

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Supplier Rating System Metrics Detail

OTD (Supplier Promise & Flex Request)Monitoring On-Time Delivery metrics

Driving collaboration to improve performanceIncrease manufacturing efficiency

Supplier Managed Inventory (SMI) and Continuous Replenishment Program (CRP) Promote and increase efficiency of inventory management through SMI & CRP programs

Communication PerformanceMeasure Quotation Response Time % & Environmental Response Time %

Quality PerformanceMonitoring and scoring Supplier DPPM Level,

SCARs Incidents and Response time

Purchase Order (PO) AutomationMeasure and promote to speed up Purchase Order processing and confirmation

Supplier Chain OptimizationPromote and Measure the continues improvement on the supply chain value

Payment Terms Promote collaboration from our supply base that join and align with Flex term

SRS

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Supplier Rating System (SRS) – Process Flow Steps

Communication and Collaboration

Supplier Performance Assessment

Data Management & SRS Reporting

Supplier Improvements

Plans

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Every Quarter the SRS is created, and the selected suppliers receive an automatic Scorecard report with the detail of metric results, example below.

Supplier Scorecard

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The overall score is achieved through a fixed weighted average, the highest overall score for these measurements combined is 4.00. If one measurement is “N/A” (Not Applicable), then the weight of the item is divided and proportionally aggregated to the remaining items.

Final Score Ranges (Suggested Actions to be Taken)

0 - 0.99POOR

Supplier must provide Improvement Plan within 2 weeks if receipt this score in one of the sites or metrics

1.0 - 1.99NEEDS IMPROVEMENTS

Supplier must provide Improvement Plan within 4 weeks if receipt this score in one of the sites or metrics

2.0 - 2.99ACCEPTABLE

Supplier is performing on an average level with room for improvement

3.0 – 4.0WORLD CLASS

Supplier has potential to become a Preferred Supplier and to receive additional quote opportunities and/or business.

5

Thank You