Supplier Quality Development Program/Performance Rating
I.
II.
III.
IV.
I.
What is the Supplier Quality Development (SQD) Program?
A.
Primary Components of SQD Program
B.
SQD Key Strategies
C.
SQD Representative Responsibilities
Vision/Mission/Goal
SQD Supplier Expectations
Supplier Quality Rating
A.
Supplier Scorecard
1.
Why is it important?
2.
How do I access the information?
3.
Supplier Scorecard Manual
B.
Audit Score
C.
Corrective Action Follow Up (CAPA Rating)
D.
What are considered poor ratings and what happens if I have poor ratings?
1.
Supplier Quality Improvement Plan
a. Why would I receive one?
b. What does it look like?
What is the Supplier Quality Development (SQD) Program?
A.
Primary Components of the SQD Program
Supplier Quality Development (SQD) is a strategically focused program that is aimed at:



Driving quality
Continuous improvement
Lowering total cost for the company as well as the supplier
The SQD team is aligned with the Sourcing Strategy Teams and is composed of members
of Quality Assurance from both the Ada and Nutrilite facilities.
Return to Top
B.
SQD Key Strategies

Development: Partner with new and existing ABG Suppliers to drive continuous
improvement activities in the suppliers’ manufacturing processes, quality systems,
and customer service to achieve measurable improvement in quality.
Version 2
Updated: April 2008
1

Performance: Systematically identify opportunities to improve supplier
performance and proactively develop/drive Supplier Performance Improvement
Plans to achieve measurable improvement in supplier product quality, on-time
delivery, and total lowest cost.

Prevention: Proactively assess supplier manufacturing and quality capabilities,
minimize potential risks, and ensure the effective implementation of ABG Quality
Expectations to achieve on-time, on-target launches and exceptional supplier
quality.
Return to Top
C.
SQD Representative Responsibilities








Partner with Suppliers to improve quality
Participate in Strategic Sourcing Teams (SST)
Support the sourcing of new materials and suppliers
Advanced Quality Planning on new product initiatives
Conduct supplier quality audits
Manage Material Certification Program
Manage raw material and product non-conformance
Complaint data analysis and reporting
Return to Top
II.
Vision/Mission/Goal
VISION: To build a foundation for world class quality through supply-based continuous
improvement activities.
MISSION: To proactively drive supplier quality development to deliver quality materials and products on time
and on target.
GOAL: The ultimate goal is to drive improved quality starting at the supplier, which drives
continuous improvement and a lower total cost of ownership for all involved.
Return to Top
Version 2
Updated: April 2008
2
III.
SQD Supplier Expectations
We want our suppliers to continually focus on quality improvement.
To continually drive supplier quality development and maintain or exceed the 99% quality
expectation, our team is willing to work with you to proactively achieve this goal. However, for
us to be able to assist you in the process, we also expect that our suppliers are engaged in the
process and meet certain expectations. These expectations are:

Have effective and timely processes in place to implement corrective actions and quality
improvements

Focus on continued quality improvement

Have identified and available quality resources

Share best practices

Share data to reduce inspections

Attention to audits and follow up actions

Good communication
Return to Top
IV.
Supplier Quality Evaluation Tools
A.
Supplier Scorecard
The quality rating is a rating that is calculated based on quantitative metrics that
measure supplier performance in areas that have a significant impact on supply
chain operations. These metrics are outlined on the supplier scorecard and
accessible to the supplier via the Supplier Analytics password protected portal (a
link to this application is provided on the Supplier Portal).
The Supplier Scorecard measures supplier performance using key supply chain
metrics.
Return to Top
Version 2
Updated: April 2008
3
1.
Why is it important?
The score received on the supplier scorecard is important because it
determines whether the company will seek a long term or short
relationship with the supplier.
2.
How do I access the information?
Scorecards are available on the ABG Supplier Portal in the password
protected Supplier Analytics section (For more information on Supplier
Analytics please refer to the Supply Management > Supplier Analytics
section of the Supplier Portal).
This information is also available from your SQD representative during
the Quarterly Review or from your Procurement representative.
3.
Supplier Scorecard Manual
For more detailed information on elements of the supplier scorecard,
please take a look at the Supplier Scorecard Handbook on the Supplier
portal under the Supply Management > Performance Evaluation section.
If you should have any additional questions, please contact your
Procurement representative.
Return to Top
B.
Audit Score
Audit scores are taken from the audit checklists and can vary depending on the kind of
audit that is performed.
Please refer to the Business Requirements > Quality > Forms section of the supplier
portal to access the ISO and GMP audit checklists.
Return to Top
C.
Corrective Action Follow-Up (CAPA Rating)
This metric measures how effectively and timely a supplier responds to CAPAs from the
time of receipt to successful control of the issue.
Return to Top
Version 2
Updated: April 2008
4
There are four areas that are measured on a scale of 1 to 5 (5 being the highest):
1.
2.
3.
4.
Timely Response
Effective Response
Timely Implementation
Demonstrated Control
Return to Top
D.
What are considered poor ratings and what happens if I have
poor ratings?
ABG expects that its suppliers have an overall quality rating of 99% or higher. We
know that this is an ambitious target, so we are willing to partner with our suppliers to
achieve this goal together.
For suppliers with quality ratings of less than 99%, a quality improvement plan will be
created to help the supplier work towards the goal.
However, consistently poor ratings can also lead to a change in the suppliers’
segmentation, which affects the business relationship between the supplier and ABG. For
more information on Segmentation, please refer to the Supply Management >
Segmentation section of the Supplier Portal.
Return to Top
1.
Supplier Quality Improvement Plan
Supplier Quality Improvement Plans are supplier goals that are created as result of
quality reviews of less than 99%, or as needed. These goals are intended to help
the supplier work towards and sustain the 99% or higher quality rating.
Return to Top
Version 2
Updated: April 2008
5
a.
Why would I receive one?
Your SQD representative will discuss a quality improvement plan with
you when a consistent problem is identified or if your quality rating falls
below 99%.
Return to Top
b.
What does it look like?
Below is a Supplier Quality Improvement Plan template. The highlighted
portions of the template are key areas of the template.
A copy of this guide is also available under Business Requirements >
Quality > Guides.
Version 2
Updated: April 2008
6
Return to Top
Version 2
Updated: April 2008
7