METRO Group and its manufacturing partners share one common interest: they aim to design the supply chain as efficiently as possible - from production to sales. Efficient goods streams depend on a number of success factors: meeting delivery deadlines, goods being picked correctly and delivery notes being accurate. METRO Group is deploying a special tool called the Metro Supplier Scorecard to measure these success factors and therefore add transparency to the supply chain.

The Metro Supplier Scorecard is an assessment model which allows METRO Group to check the performance levels of its suppliers based on standard key figures called Key Performance Indicators (KPIs). KPIs include points such as punctuality, in-store product availability and speed as well as identifying if consignments are complete.

Based on Key Performance Indicators (KPIs) METRO Group can analyze supplier efficiency. The Metro Supplier Scorecard includes the following KPIs:

The response time of a supplier is also a critical factor. The Order to Delivery Lead Time (the time between issuing the order and the goods being delivered) is also measured. The key figures immediately show which suppliers need a long time to deliver ordered goods. METRO Group is able to explore how to accelerate these processes in cooperation with manufacturers.

Target KPIs have been defined between Metro and suppliers, which allow a comparison of budget and actual figures. In the future these KPI target values are to be determined and coordinated in buyers’ meetings with suppliers.

The Metro Supplier Scorecard adds transparency to logistics processes and contributes to improving goods supply. METRO group deploys this supervision tool to systematically and regularly analyze the purchasing process. As a result of the Metro Supplier Scorecard, weaknesses can be identified at an early stage, which increases the reliability and response speed of manufacturing partners. The outcome: process efficiency and reduced costs in warehouse and shipping logistics. Superior supply quality is a pre-requisite for smooth processes since superior supplier quality enables optimal shelf stacking and dispatching in line with demand.

The Metro Supplier Scorecard is an important planning platform available to suppliers. It enables them to tap improvement potentials and accelerate processes with METRO Group. The Metro Supplier Scorecard contributes to optimizing goods availability in stores – which is a benefit for trading companies, manufacturers and consumers. Customers are rarely confronted with empty shelves and do not need to switch to other manufacturers or even other stores. Suppliers can also use the Metro Supplier Scorecard to compare their performance to that of their competitors. Suppliers can access benchmarking information to compare their efficiency with other competitors via the information system Metro Data Warehouse.

The Metro Supplier Scorecard is part of the METRO Group data warehouse. It is embedded in a complex integrated system, which includes the Metro Merchandizing System (MMS) and Corporate Reporting Standardization (CRS). The latter enables the group’s staff to regularly view and update suppliers’ KPIs and Metro Supplier Scorecard reports. CRS can also be used as an analysis platform. Staff can check the development of scorecard ratings over a period of time, which means that the current quarter can be compared to the previous quarter.