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Philips Consumer Electronics
Improved Supplier Rating System
Introduction
In order for Philips to meet our customers’ high quality expectations, we require from our suppliers only world class quality materials, 100 % on-time deliveries, shortest possible lead times, as well as their full commitment to continuously improve their products and services, both in the Order Fulfillment and in the Product Creation Process. In order to achieve this high goal, the performance of the suppliers is evaluated in regular intervals in a consistent and standardised way by our Supplier Rating System and the results are reported back to the suppliers as a basis for further improvement programs.
The main objectives fulfilled by the SRS are
• effective measurement of the supplier’s actual performance and its continuous improvement efforts, at site level and at SBMT level
• constant feedback to rated suppliers as a means of motivation, followed up by mutual agreed improvement actions, leading to a competitive advantage for both Philips and our suppliers in our global markets
Only the Key local suppliers and the Forward Procurement List suppliers are measured by the SRS, according to the yearly Supplier Monitoring Schedule, and provide a 90% turnover coverage.
The suppliers are rated on a monthly basis by every site. This reporting is the basis of mutual agreed improvement actions monitored locally by every site.
Every quarter, the performance of the suppliers from the Forward Procurement List is consolidated at global level, to enable the SBMTs and their CLANs to review and agree on the overall rating and action to support for every supplier. This global reporting provides a key input for supplier business review meetings as well as article strategy review and related sourcing plan:
• Performance above 80%: green
• Performance between 60 & 79%: yellow – mandatory improvement plan
• Performance below 59%: red – mandatory improvement plan leading to yellow/green status within 6 months or phase-out plan from the CLAN.
The following elements of the supplier performance are rated: Quality , Delivery, Cost performance, Responsiveness/Support, Innovation
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