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Supplier Evaluation

Continuous Quality Evaluation of All Suppliers

  • Suppliers are continuously evaluated on the basis of the quality data logged at the Incoming Goods Department.
  • Calculation formulas saved in the system provide key figures, e.g. for rejected incoming goods, PPM values, field and production line failures on the customer’s side, as well as 8D response times.
  • Based on the results, suppliers are classed as A, B, or C suppliers.
  • The results of this continuous quality evaluation are transferred in the form of an average value into the annual supplier evaluation.

Annual Evaluation of Main Suppliers

At the year’s end, all main suppliers are evaluated in the categories of commercial, technology, quality, and logistics.

The responsible expert departments perform the evaluation for each category:

  • Global commercial evaluation by the Strategic Purchaser responsible for global purchasing
  • Global evaluation in the technology category by the Component Engineer (Electronics) or the Supplier Development Officer (Mechanics) responsible for global technology
  • Evaluation of the individual plants in the categories of logistics and quality by the locally responsible Quality and Logistics Teams.

Criteria for Evaluation in the Individual Categories

  • Commercial: cost competitiveness, contract situation, payment conditions, participation in supplier programs, cooperation, customer orientation, financial stability
  • Technology: technical documentations, specifications and qualification, technical change management, communication, and technical support, innovation, material conformity
  • Quality: rejected incoming goods, PPM values, field and production-line failures on the customer’s side, claims management (speed of response and quality of answers), fault analysis
  • Logistics: on-time delivery in the correct quantity, delivery confirmations, lead times, flexibility, order processing, customer orientation

Each supplier has access to the detailed results in a supplier portal, with visualization using stop-light colors. Depending on the result, we expect suitable reactions from suppliers as well as the initiation of joint improvement programs.

Diehl Stiftung & Co. KG © 2018