Supplier Performance Visibility: Creating a Specialized Scorecard

The use of supplier scorecards has become standard in business environments to measure performance. This need for scorecards has spurred research on the best metrics to include, shown the importance of linking each measure with long-term goals, and explained pitfalls that many scorecards fall into, such as gaming particular metrics. This research contributed to the development of a new monthly scorecard for use at Northrop Grumman in Chandler, AZ, titled the Supplier Performance Visibility report, or SPV. The SPV uses six different metrics to cover many aspects of supplier performance that contribute to the work Northrop Grumman does for its customers. This report analyzes the ways in which the data for the scorecard was collected and the major findings during the five months of initial implementation.