# Supplier Scorecard KPIs

| KPI | Definition | Notes |
|-----|------------|-------|
| PPM | Rejected parts / received parts x 10^6 | Count parts rejected at receiving, in production and at the customer when caused by the supplier. Agree whether sorted-good parts count |
| Incidents | Number of quality incidents (NCRs, SCARs) per period | Better than PPM for low-volume or high-value parts |
| OTD | Deliveries on time / total deliveries x 100 | Define the window (e.g. -2 / 0 days) and the reference date (confirmed or requested) |
| Quantity accuracy | Deliveries with correct quantity / total | Often combined with OTD as OTIF |
| Responsiveness | SCARs answered on time (containment 24-48 h, root cause 10 days, closure 30 days) | Also PPAP on time, change notifications in advance |
| Premium freight | Cost of expedited shipments caused by the supplier | Delivery severity indicator |
| Disruptions | Line stops, customer notifications, field actions caused by the supplier | IATF 16949 9.1.2.1 and 8.4.2.4 require these |
| Certification status | ISO 9001 / IATF 16949 / AS9100 valid | Gate, not a score |

IATF 16949 8.4.2.4 requires monitoring of delivered product quality, customer disruptions (including yard holds
and stop-ships), delivery schedule performance including premium freight, and special-status notifications from
customers. ISO 9001 8.4.1 requires criteria for monitoring and re-evaluating providers and retained records.

## Normalising

- Low volumes make PPM jumpy: use incidents, or a rolling 3-6 month PPM.
- Mixed commodities: set PPM targets per commodity (castings 1,000 vs fasteners 10).
- Distributors: score on traceability, documentation and delivery more than PPM.
- Share the definitions with suppliers so they can reproduce their score.