From the Archives of a Common Sensei Volume 17: SUPPLIER RATING SYSTEM (example from early US Toyota Operation)


In this volume of From the Archives of a Common Sensei, we are providing an example of the “Supplier Rating System for Parts and Raw Materials”. This example provides a foundational, but beneficial, means for evaluating your suppliers by rating their performance against your expectations. At Toyota Industrial Equipment, in the early days (1994), we assessed supplier performance against the foundational classifications of quality, cost, and delivery. Within these categories, we used sub-categories to provide additional detail and validation. These in turn were rated using a 6 (exceptional) to 1 (unsatisfactory) scale. By using the calculations on page 2 through page 7 to provide data for each supplier delivery, you can transfer those points to page one to calculate the overall picture for that specific supplier’s delivery. By accumulating these ratings, they can be used as valuable input to future supply contract winner negotiations and determination. Couple this type of supplier rating with physical operations visits and financial review and you will have a surprisingly good view of how that supplier will perform in the future.

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