A key step in supplier integration is the creation and implementation of a set of supplier logistics certification criteria; a set of performance measures, logistics capabilities, and other business requirements that must be met or exceeded that qualify a supplier to participate in the supply base. The logistics information system should compute, monitor, and report supplier performance to these predetermined supplier certification criteria such as on-time delivery, fill rate, delivery quality, documentation, unitization, labeling, packaging, and perfect purchase order percentage. An example set of criteria recently created for a large healthcare wholesale client is enumerated below.
On Time Performance at or Exceeding Standards
Damage Free Performance at or Exceeding Standards
Inbound Information Accuracy at or Exceeding Standards
Unit Load Configuration and Labeling to Standard
ISO 9000/9002 Compliance
Advance Shipment Notification (ASN) Participation to Standard
Purchase Order Number, Purchase Order Line Number, Cases, Lots, Expiration Date Presented to Standard
License Plate Correctly Placed on Inbound Unit Load
Scheduled Deliveries Participation
PERFECT DELIVERY PERCENTAGE at or Exceeding Standards
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