The Bosch Automotive Service Solutions Supplier Management Process is designed for selecting, managing, developing, and maintaining inventory suppliers providing products who have been determined to be integral factors in contributing to the overall success of Bosch Automotive Service Solutions, Inc.
Bosch wants to partner with our suppliers in order to provide quality product, with on-time delivery, utilizing appropriate technology, at a competitive cost to exceed our customers’ expectations.
The supplier scorecard has four (4) performance categories:
- Quality (PPM, Incident/million)
- On Time Delivery
Each category is further divided into Growth, Provisional or Under Performing indicator status ratings based on the specific category parameters.
After the performance category indicator status ratings are determined, a composite score will determine the total supplier status rating.
Growth Supplier: Supplier performance meets or exceeds Bosch expectations. These suppliers are given preference on any new business.
Provisional Supplier: Supplier performance is below expectations but still within an acceptable range. A performance improvement plan needs to be discussed to bring performance levels up to a Growth category.
Under Performing Supplier: Supplier performance is below expectations and adversely impacting Bosch’s business. A performance improvement plan is required with a detailed action items on how the supplier will improve to acceptable levels. If no improvement is displayed, there will be a potential phase out discussion and the Escalation Process will be started.
Quality – Parts Per Million PPM
Calculation: The sum of products subject to complaints divided by the sum of delivered product within the specified time period x 1,000,000. For the calculation, only products subject to complaints where the SUPPLIER caused the defects are included. Shipments with written concessions prior to shipping (e.g. waiver) are excluded. PPM Target for 2018 < 1,661 Discrepancy Reports used in the PPM calculation are also on the supplier website portal for viewing.
Quality – Incidents Per Million is noted on the score card as a reference point for 2016, not in the overall calculation.
On Time Delivery (OTD)
Calculation: An individual Purchase Order (P.O.) line receipt, for On Time Delivery, is calculated against the acknowledged/planned delivery date. It is then determined to be On Time if the line is received within a window of 10 days early and 0 days late. If a P.O. line is not shipped complete, subsequent receipts will reduce the On Time Delivery percentage accordingly.
Binary report will be generated with Baan data rating suppliers within the below productivity categories:
- Year over year cost savings rebate agreement 0 if none, 2 if one or both
- E2Open participate 0 if not participating, 1 if participating
- Kanban and/or KB2 participate 0 if not participating, 1 if participating
- Signed T&C, Quality Assurance Agreement on file 0 not on file, 1 if on file
- Active in Value Analysis & Engineering Projects 0 if not participating, 1 if participating
- Count of Supplier Corrective Action Report’s 0 if have SCAR, 1 if no SCAR
Default all suppliers in this category to 0.
Supply Chain Manager, with collaboration from the buyer and Value Stream Teams (VST), use a binary rating to score the supplier in the below categories:
- Spirit of Partnership/Shared Risk – Fully engaged in positive collaboration. Examples: Not having too many components on a risk P.O, the ability to quickly change production to meet Bosch’s demand, active in New Product launches, and fully engaged supply chain improvements.
- Responsiveness and Trust – Responsive and trustworthy in carrying out the necessary activities within an allotted time. Examples: NPI, RFQ’s, Barcoding, Country of Origin, N2580.
- Flexibility – Flexible and reactive to Bosch’s needs.
Supplier Report Cards (SRC) will be updated each Monday.
Detailed information regarding individual receipts is available by contacting your Buyer, Commodity Manager, Supplier Quality Manager or Supplier Quality Engineer.
Discrepancy Reports (DR) will be updated weekly and will remain online for 12 months. If nonconforming material is submitted to Service Solutions and a discrepancy is issued to you, a root cause analysis and corrective action report is to be submitted to either the Supplier Quality Engineer or the Supplier Quality Manager within 48 business hours. Please reference the DR number in the subject line.
Thank you for your past and future efforts in making Bosch Automotive Service Solutions, Inc. successful. Bosch Automotive Service Solutions, Inc. – relies heavily on the performance of its suppliers in contributing to the success of its organization. Every organization makes commitments to their customers with the expectation that their supply chain will execute flawlessly. Bosch Automotive Service Solutions, Inc. is no different in its expectation. It is important that we understand our roles, expectations, and consequences of poor performance.
If you have questions regarding this report, please contact your Supply Chain Manager or Buyer.