Supplier Scorecard Example: Three Suppliers, Three Tiers

See the metrics guide for definitions and weighting, and the scorecard template guide for the structure. This page focuses on what a filled-in scorecard looks like in three different scenarios.

Scorecard structure used here

Six metrics, weighted to a single composite score out of 100:

• PPM — 30%
• OTD — 20%
• SCAR response (time + quality combined) — 20%
• PPAP / FAI first-pass yield — 10%
• Audit findings — 10%
• Escape rate — 10%

Each metric is scored 0-100 against a defined target, then weighted. Tier: A ≥ 90, B 75-89, C below 75.

Supplier A — Aerospace machining (Tier A)

Profile: 4-axis machined housings, AS9100D certified, 8 years on the AVL, 22 active part numbers.

Raw quarterly metrics (Q1 2026):

• PPM: 6 (target ≤ 10) → score 98
• OTD: 99.2% (target ≥ 98%) → score 96
• SCAR response: 1 open SCAR closed in 22 days, 100% first-pass acceptance → score 95
• FAI first-pass yield: 100% (4 of 4) → score 100
• Audit findings: 1 minor open from last audit → score 90
• Escape rate: 0 PPM → score 100

Composite: (98×0.30) + (96×0.20) + (95×0.20) + (100×0.10) + (90×0.10) + (100×0.10) = 96.6 — Tier A.

Decisions: Preferred for new business allocation. Inspection moved to skip-lot for the 12 mature parts. Annual audit moved to extended-interval (18 months) per AS9100 program rules.

Supplier B — Electronics distributor (Tier B)

Profile: Authorized distributor for connectors and passives, ISO 9001 certified, 3 years on the AVL, ~180 SKUs.

Raw quarterly metrics:

• PPM: 95 (target ≤ 100) → score 88
• OTD: 94.5% (target ≥ 95%) → score 82
• SCAR response: 3 SCARs in quarter, average closure 38 days, 67% first-pass → score 70
• PPAP yield: N/A (distributor, no PPAP) → use AVL change-notification compliance as proxy: 100% → score 100
• Audit findings: 1 major and 2 minors carried from last audit → score 65
• Escape rate: 8 PPM (1 connector escape traced to packaging change) → score 75

Composite: (88×0.30) + (82×0.20) + (70×0.20) + (100×0.10) + (65×0.10) + (75×0.10) = 80.6 — Tier B.

Decisions: Standard incoming inspection retained. Quarterly Business Review focuses on closing the open audit major and improving SCAR first-pass rate. Single connector family with the escape moved to 100% incoming until effectiveness verified.

Supplier C — Automotive injection molder (Tier C)

Profile: Single-source for a Class B interior trim part, IATF 16949 certified, recently acquired by parent company with mid-pandemic management changes.

Raw quarterly metrics:

• PPM: 380 (target ≤ 50) → score 35
• OTD: 88% → score 50
• SCAR response: 6 SCARs, average closure 52 days, 33% first-pass → score 40
• PPAP yield: 60% (3 of 5 resubmitted) → score 50
• Audit findings: 2 majors and 4 minors open → score 30
• Escape rate: 22 PPM (one customer return) → score 40

Composite: (35×0.30) + (50×0.20) + (40×0.20) + (50×0.10) + (30×0.10) + (40×0.10) = 40.5 — Tier C.

Decisions: Formal supplier development plan opened with 6 exit criteria mapped to the failing metrics. 100% incoming inspection reinstated. Monthly business review. New business allocation suspended. On-site audit scheduled inside 30 days. Re-sourcing analysis kicked off in parallel as risk mitigation.

Standard actions by tier

• Tier A — preferred for new business, reduced inspection, extended audit interval, quarterly review.
• Tier B — standard inspection, normal audit cycle, quarterly review, focused improvement plan.
• Tier C — 100% inspection, monthly review, formal development plan with exit criteria, no new business, re-sourcing analysis in parallel.

FAQ

How is a supplier scorecard composite score calculated?

Each metric is scored 0-100 against a defined target, multiplied by its weight, and summed. Tiers map to the composite: A ≥ 90, B 75-89, C below 75.

What tier ranges are typical?

A ≥ 90, B 75-89, C below 75 is the most common three-tier system. Some aerospace programs use a four-tier system that splits A into Preferred (95+) and Approved (90-94).

What if a supplier scores Tier A but has one critical escape?

Most programs override the composite for any safety- or regulatory-critical escape — moving the supplier to controlled shipping regardless of the overall score until effectiveness is verified. The composite then resumes for ongoing tracking.

How often is the scorecard updated?

Monthly internally, quarterly with the supplier (monthly for Tier C). Annual review feeds the AVL maintenance cycle.