Supplier Score Card
Dear Supplier:
As part of the Navistar Engine Group long term strategy, we will continue to support our customers with
great products, keep a very competitive cost structure and maintain sustainable growth. Suppliers play
an important role in our strategy and are relied upon to provide quality product at the best cost with great
technical support. Navistar recognizes flawless long-term strategy execution must be accompanied with
an open and clear communication about challenges whereby the supply base can act to improve their
support, quality and ensure they are meeting Navistar’s expectations.
Suppliers currently have access to the Logistic Score Card which has been a great tool to monitor and
measure supplier delivery performance. With the new Supplier Score Card System, suppliers will have
Navistar feedback in three additional areas: Quality, Purchasing and Engineering. Quality score card will
launch in this phase with Engineering and Purchasing score cards launching within the next few months.
Navistar wants to monitor, measure and keep the best suppliers in its supply base. In addition, we want
to recognize outstanding performance through the Diamond Supplier Award for those suppliers that
exceed our expectations. We fully expect suppliers to meet or exceed Navistar’s expectations during the
course of the relationship, which translates to a score of 91 points or above.
In the next slides you will be familiarized with the Supplier Score Card and its categories, i.e. Logistic
and Quality Score Cards. The presentation explains the Score Card rules for each category, evaluation
frequency and important notes.
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Logistic Score Card
Logistic Score Card
The Logistic Score Card was launched in 2003 to help Navistar consistently provide accurate, precise, timely and
cost effective deliveries of materials to our manufacturing facilities. Currently, most of the supply base is familiar
with the rules and how suppliers are scored.
As the Supplier Score Card will incorporate all available Score Cards we want to reiterate the importance of the
Logistic Score Card, rules and notes. The Engine suppliers are scored based on the categories : Order
Shortages; Website Logins; Minimum/Maximum Violations; Packaging; Labeling; ASN Compliance and
Transportation
The table below identifies the categories, deductions per violation and max points deduction a supplier may
experience.
Navistar expects suppliers to keep their Logistic Score at 95 points or above over a three month average. The
minimum expectation is an 85 points rolling average for a three-month period.
Consistent with our previous practice, Suppliers that perform below the minimum level will be debited a
$2500 administrative charge per Plant location.
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Logistic Score Card
All notes below make reference to Logistic Score Card and Navistar Supplier Guideline:
Order Shortages
25 possible points; 5 point deduction per violation up to 25 points.
Plant orders from SMI that cannot be completed for full requirement (2.1.1).
Website Logins
20 possible points; 5 point deduction per violation up to 20 points.
Required to check appropriate SMI Logistics Provider website(s) each Navistar Engine Plant operating day (2.1.2).
Min/Max Violations
20 possible points; 2 point deduction per violation up to 20 points.
SMI levels fall below or above the established inventory levels (2.1).
Packaging
10 possible points; 1 point deduction per violation up to 10 points.
Adherence to Packaging Guidelines (4.1).
Labeling
10 possible points; 1 point deduction per violation up to 10 points.
Adherence to Labeling Guidelines (4.2; excluding 4.2.2).
ASN Compliance
10 possible points; 1 point deduction per violation up to 10 points.
Properly formatted and timely EDI 856 – ASN (1.1.5) and proper use of Quick Receive Label (4.2.2).
Transportation
5 possible points; 5 point deduction per violation up to 5 points.
Utilization of proper carrier (Element 3.0).
Please refer to the Engine Group Supplier Guidelines, click on the link below for more information
(http://evalue.internationaldelivers.com/supplier/Documents/DO000D01.pdf) or contact Mel Campbell at
Mel.Campbell@navistar.com or (708) 865-3715.
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Quality Score Card
Quality Score Card
Navistar is proud to present the Engine Quality Score Card and its rules. We fully expect
suppliers to meet or exceed Navistar’s expectations during the course of the relationship,
which translates to a score of 91 points or above.
Furthermore, we expect suppliers to use the Navistar Scorecard information as part of their
on-going continuous improvement program(s) to meet their TS/ISO certification
requirements.
Purpose:
Navistar’s primary purpose for sharing this information is to educate/inform suppliers of
quality concerns and trends.
Navistar will also use this information as a factor for determining appropriate surveillance
requirements for current and future products
Evaluation :
Every month the Engine Central Quality Managers will score suppliers based on key
product quality metrics and timeliness of actions
Suppliers will not receive debits for falling below a score of 91. However, quality scores will
be used as a critical part of all sourcing decisions.
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Quality Score Card
The table below identifies the categories, deductions causals and points deductions per violation.
Please contact internationalscorecard@navistar.com in case of Quality Score Card questions or contact
directly the Supplier Quality Engineer responsible who has been working with you.
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