Supplier Score Card

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Supplier Score Card
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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 Navistars 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 Navistars
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
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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_at_navistar.com or
[phone].
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Quality Score Card
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Quality Score Card
Navistar is proud to present the Engine Quality
Score Card and its rules. We fully expect
suppliers to meet or exceed Navistars
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
Navistars 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_at_navistar.com
in case of Quality Score Card questions or
contact directly the Supplier Quality Engineer
responsible who has been working with you.