Friday, October 23, 2020
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Vendor Performance Metrics
 

Vendor Scorecard and Performance Debits for Non- Compliance

 
True Value measures and grades its supplier partners in several key areas:
          • Fill Rate
          • Lead Time
          • Use of EDI to exchange information
          • Timely and accurate ASNs
           
Supplier performance metrics are updated on the 10th of every month and posted to the True Value Vendors Online website. An overall performance scorecard, detail of shipments and non-compliance debits are all made available for use in monitoring and improving your order fulfillment processes with True Value. Suppliers are given 30 calendar days to review charges for non-compliance before a debit invoice is processed. After the 30-day window has closed, charges can no longer be appealed or reversed.

If you wish to contest a charge within the review period email: Scorecard@TrueValue.com.

Vendor Performance Metrics:
 

Fill rate:

Units received divided by units ordered equals the fill rate. True Value's goal is a 98% fill rate service level on the first shipment. A fill rate grade is assigned based on your performance
 

• 100%-98% = A (4 points)
• 97%-95% = B (3 points)
• 94%-92%= C (2 points)
• 91%-90%= D (1 point)
• Less than 90% = F (0 points)
 

We will monitor the number of shipments being made on each PO.

Lead Time:

Lead time is the number of days between the purchase order date and the requested shipment date. A lead time grade is assigned based on your performance to the original requested shipment date.
 

• <2 days late = A (4 points)
• 3-4 days late = B (3 points)
• 5-7 days late = C (2 points)
• 8-10 days late = D (1 point)
• >10 days late = F (0 points.)
 

Please note that while early delivery may seem to be “in the customer’s best interest”, it often is not an optimal business situation due to the logistics inefficiencies that can be created. True Value’s goal is for all product deliveries to be no more than one day early or one day late. If you anticipate your lead time will change on a particular purchase order due to a business issue, please immediately contact your True Value Inventory planner or Supply Chain Performance analyst to discuss how you can stay in compliance with our guidelines. Contacts

EDI Requirements:

Electronic Data Interchange (EDI) is a necessity in today’s business environment as a cost-efficient and speedy method of moving business information. As a supplier to True Value, your company is required to use EDI to exchange various documents with True Value Company. Specific guidelines and expectations for implementation. Please view EDI Documentation or a list of EDI Contacts for specific. The required documents are:

• 850 (PO)
• 860 (PO Change)
• 856 (ASN)
• 810 (Invoice)
 

The accuracy and visibility of ASN information is critical to creating an efficient supply chain. An EDI grade is assigned based your performance on sending ASNs and accuracy of the data
 

• 100%-98% = A (4 points)
• 97%-95% = B (3 points)
• 94%-92%= C (2 points)
• 91%-90%= D (1 point)
• <90% = F (0 points)
 

Overall Grade:

An overall grade is assigned based on the total points in the above 4 categories.
 

• A = 12 points
• B = 11 points
• C = 10-9 points
• D = 8 points
• F = < 8 points

Fill Rate Calculations:

MANAGED/NON-MANAGED SUPPLIERS: Service Level is based on the summation of units received up to 24 hours after the PO’s expected delivery date versus units ordered.

PO Completeness: We will monitor the number of shipments made against each PO based on the number of ASNs/receipts received for each PO. The goal is to have one shipment per order.

Lead Time Calculations:

Non-Managed (PPD): If first receipt date is more than one day after the expected delivery date, then on the shipment is on late. The average days late will be calculated against the PO’s expected delivery date plus one for the first receipt against a PO.


Managed (Collect/PPD w/ allow.): If the ASN or 214 date are more than one day after the requested ship date, the order is late. If an ASN or 214 date are not sent, then we will calculate the ship date based on the receipt date minus 6 days transit. The average days late will be calculated against the PO’s requested ship date based on the ASN date or the 214 date.

EDI Grade:

We will list the vendor’s status for the required EDI documents: 850, 860, 856, & 810, but the status will only be considered for new vendors…. The EDI grade will be calculated by taking the average of ASNs received and the ASN Accuracy.

PO’s to ASNs: This is a percent of the number of receipts to the number of ASNs.

Accuracy: ASN accuracy will be calculated by a combination of total units received against the quantities sent on all ASNs for a PO.

 


 

 

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