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Suppliers
Performance Requirements
Suppliers
to Waterloo Industries are rated in three areas on a 1 to 5 scale
with a 1-2 rating being excellent, 2-3 acceptable, and 3 or above
unacceptable.
Quality
A supplier's quality rating is measured by the quantity of parts
received vs. the quantity of parts rejected.
| Rating |
%
of Rejects |
| 1 |
0
- .050% |
| 2 |
0.51%
- .250% |
| 3 |
.2501%
- .600% |
| 4 |
.6001%
- 1.0% |
| 5 |
≥
1.001% |
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Quantity
Delivered
A supplier's quantity rating is measured by the percent of material
delivered that is over or under the quantity ask for on a purchase
order.
| Rating |
Under |
Over |
| 1 |
0% |
.5% |
| 2 |
0% |
1.5% |
| 3 |
-1.5% |
3.6% |
| 4 |
-3.6% |
5.0% |
| 5 |
>
- 3.6 %
|
> 5.0% |
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On
Time Delivery
On time delivery is measured by the number of days material is delivered
ahead of or behind the actual due date on the purchase order.
Measured in Days
| Rating |
Early |
Late |
| 1 |
-1 |
0 |
| 2 |
-2 |
0 |
| 3 |
-3 |
1 |
| 4 |
-4 |
2 |
| 5 |
>
- 4
|
≥ 3 |
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Supplier Overall Performance
The ratings for Quality, Quantity Delivered and On Time Delivery are averaged together to create an overall performance rating. A rating of 1-2 is EXCELLENT; 2-3 is ACCEPTABLE; and 3 or over is UNACCEPTABLE.
In addition, Waterloo Industries expects suppliers to exhibit a high level of performance in the following customer service areas.
Service
Level Elements, Strategic
Those areas devoted to product development, costing, innovation,
technology, etc.
Service Level Elements, Logistic
Those areas devoted to day to day deliveries, fill quantities, shipping
accuracy, corrective action, etc.
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