- Owner
- Procurement Manager
- Effective date
- September 15, 2026
- Review cycle
- Every 12 months
1.Purpose
To monitor supplier performance against agreed standards on a regular schedule, so underperformance is caught early and strong suppliers are recognized and retained.
2.Scope
Applies to periodic performance evaluation of suppliers already under contract. Initial supplier sourcing and selection is covered by a separate SOP.
Definitions
- Scorecard
- A structured record of a supplier's performance against defined metrics such as on-time delivery, quality and responsiveness.
- Corrective action plan
- A documented plan a supplier commits to in order to fix a performance issue within a set timeframe.
- Approved supplier list
- The list of suppliers cleared for ongoing use, which a supplier can be removed from after sustained poor performance.
- Business review
- A scheduled meeting with a supplier to discuss performance, upcoming needs and any issues.
3.Responsibilities
- Category Buyer
- Collects performance data, completes the scorecard, and leads the supplier review meeting.
- Procurement Manager
- Approves corrective action plans and decides on supplier status changes.
- Quality Inspector
- Provides quality-related data such as defect rates or inspection results for the scorecard.
- Receiving Clerk
- Provides delivery and receiving data such as on-time and complete shipment records.
RACI matrix
| Activity | Category Buyer | Procurement Manager | Quality Inspector | Receiving Clerk |
|---|---|---|---|---|
| Collect performance data | R/A | I | R | R |
| Complete the scorecard | R/A | A | C | C |
| Conduct supplier review meeting | R/A | I | I | - |
| Approve corrective action plan | R | R/A | I | - |
| Decide supplier status change | R | R/A | I | - |
R = Responsible, A = Accountable, C = Consulted, I = Informed
4.Materials and PPE
Materials, tools and systems
- →Supplier scorecard template
- →On-time delivery and receiving data reports
- →Quality inspection and defect data
- →Corrective action plan template
- →Approved supplier list
- →Business review meeting agenda
5.Procedure
- 5.1
Confirm the evaluation schedule
Category BuyerCheck the evaluation calendar for which suppliers are due for a scheduled review this period, based on spend volume, risk level or contract terms.
- 5.2
Pull delivery performance data
Receiving ClerkPull on-time delivery, order accuracy and lead time data for the supplier over the review period from receiving and purchase order records.
- 5.3
Pull quality performance data
Quality InspectorPull defect rates, inspection failures or return rates for the supplier's goods over the review period, including any quality holds or rejections.
- 5.4
Complete the scorecard
Category BuyerEnter delivery, quality, price stability and responsiveness data into the scorecard template, calculating a weighted score against the standard used across all suppliers in the category.
Checkpoint: Scorecards use the same weighted criteria across all suppliers in the same category for a fair comparison.
- 5.5
Compare against the prior period
Category BuyerCompare the current scorecard result against the supplier's prior evaluation to identify a trend, whether improving, stable or declining.
- 5.6
Flag suppliers below threshold
Category BuyerFlag any supplier scoring below the acceptable threshold for the category, and prepare specific examples of the performance gap to discuss in the review.
- 5.7
Conduct the supplier review meeting
Category BuyerMeet with the supplier to share the scorecard results, discuss specific performance examples, and hear their perspective on any gap identified.
- 5.8
Request a corrective action plan
Category BuyerFor a supplier below threshold, request a written corrective action plan with specific actions, an owner and a timeline for improvement.
Warning: Do not accept a vague corrective action plan with no specific actions or timeline; send it back for more detail before accepting it.
- 5.9
Approve the corrective action plan
Procurement ManagerReview the supplier's proposed corrective action plan and approve it if it reasonably addresses the performance gap, or request revisions if it does not.
- 5.10
Monitor progress against the plan
Category BuyerTrack the supplier's progress against the corrective action plan's milestones, checking in at the agreed intervals rather than waiting for the next full evaluation cycle.
Checkpoint: Suppliers on a corrective action plan are checked at the agreed interval, not left until the next annual review.
- 5.11
Decide on supplier status
Procurement ManagerBased on the review outcome and, where applicable, corrective action progress, decide whether to maintain, expand, restrict or remove the supplier from the approved supplier list.
- 5.12
Document and file the evaluation
Category BuyerFile the completed scorecard, meeting notes, corrective action plan and status decision in the supplier's record for reference at the next evaluation cycle.
6.Quality checks
- →Scorecards use the same weighted criteria across all suppliers in a category.
- →Every below-threshold supplier receives a documented corrective action plan.
- →Corrective action plans include specific actions, an owner and a timeline before being accepted.
- →Supplier status decisions are documented and filed with the evaluation record.
7.Records
- →Completed supplier scorecards
- →Supplier review meeting notes
- →Corrective action plans and progress checks
- →Supplier status decisions
8.KPIs
- →Average supplier scorecard rating by category
- →Percentage of suppliers meeting the acceptable threshold
- →Number of suppliers on an active corrective action plan
- →Percentage of corrective action plans resulting in improved performance
9.Common mistakes
- →Using different scoring criteria for suppliers in the same category, making comparisons meaningless.
- →Accepting a corrective action plan with no specific timeline or owner.
- →Waiting until the next annual review to check on a supplier's corrective action progress.
- →Not documenting the reasoning behind a decision to keep an underperforming supplier.
10.Revision history
| Revision | Date | Description | Reviewed by |
|---|---|---|---|
| 1.0 | September 15, 2026 | Initial release | Ilia Pirozhenko |
This is a template. Adapt it to your organization, equipment and local regulations before use.
