Supplier scorecard: metrics, template and worked example

A supplier scorecard turns opinions about suppliers into numbers you can compare and discuss. It does not need special software. Five measures, a set of weights and a quarterly review will do more than a long report nobody reads.

The metrics to use

Metric	Formula	Example	Result
On-time delivery	Lines received on or before the promised date ÷ lines received	184 ÷ 200	92%
Quality	Rejected units ÷ units received × 1,000,000	12 ÷ 8,000	1,500 PPM
Lead time reliability	Share of orders received within your tolerance of the quoted lead time	Set your own tolerance	Percent
Cost	Actual price compared with quote or target, using landed cost where you import	Set your own target	Percent
Responsiveness	Purchase orders confirmed within your target time	Set your own target	Percent

Turn results into scores

Convert each metric to a score from 0 to 100, so you can combine them. Set bands that suit your business. For on-time delivery, it might look like this:

On-time delivery	Score
98% or better	100
95% to 97%	90
90% to 94%	75
85% to 89%	60
Below 85%	40

A worked example

Measure	Weight	Supplier A	Supplier B	Supplier C
Quality	30%	95	80	98
On-time delivery	30%	90	70	55
Lead time reliability	15%	85	60	50
Cost	15%	70	90	75
Responsiveness	10%	80	70	60
Weighted score		86.75	74.50	70.65

Supplier B has the best price but comes second. Supplier C has the best quality but comes last, because its late deliveries pull the score down. Those are the conversations a scorecard should start.

In a spreadsheet

With weights in B2:B6 and one supplier’s scores in C2:C6:

Weighted score: =SUMPRODUCT(B2:B6,C2:C6)

Enter the weights as percentages that add up to 100%.

How to set the weights

Weight what hurts most. If late parts stop your line, give delivery more. If you sell into a regulated market, give quality more. Agree the weights with purchasing, quality and operations, and keep them stable, so scores can be compared over time.

How to use the scorecard

1. Score your most important suppliers first, not all of them.
2. Review quarterly, and share the results with each supplier.
3. Agree one or two improvements, with dates.
4. Use low scores to prompt a second source. See single-source supplier risk and supplier diversification.

Where the data comes from

You need purchase order history with order, promised and received dates, plus receiving and rejection records. A supplier’s promised date is only useful if it was confirmed, so read how to get purchase orders confirmed.

The Statadventure Optimization Lab measures real lead times, slippage and risk by supplier from your own purchase orders, on the Planner and Growth plans. For hands-on help, see our supplier risk assessment and procurement consulting.

Frequently asked questions

What should be on a supplier scorecard?

Most scorecards cover quality, on-time delivery, lead time reliability, cost and responsiveness, each with a weight that reflects what matters most to your business.

How often should you review supplier scorecards?

Quarterly is common. Review critical suppliers more often if they are causing shortages.

Should you share the scorecard with suppliers?

Yes. It gives them a clear view of what you measure, and it turns a complaint into a shared target.