What does the Metro Supplier Scorecard Measure?
The METRO Group Metro Supplier Scorecard contains a number of Key Performance Indicators (KPIs) which allow the retailing group to measure the performance of its suppliers. These KPIs are defined by the central purchasing unit of the group, MGB METRO Group Buying. It coordinates its efforts with the sales divisions Real, Metro Cash & Carry Germany and Metro Cash & Carry International as well as the group’s logistics division. There are two versions of the Metro Supplier Scorecard: an external version, which suppliers can access and an internal version which can only be viewed by METRO Group staff, as it contains confidential information such as gross profits and margins.
In Focus: Punctuality, Goods Volumes and Delivery Notes
The Metro Supplier Scorecard includes the following Key Performance Indicators (KPIs):
- Stock Coverage (how long stock covers demand)
- Lead Time Reliability (reliability of delivery)
- Claims Free Deliveries (proportion of correct delivery amounts)
- Fill Rate (proportion of correct delivery amounts arriving on time)
High Speed for Perishable Goods
Apart from the key figures mentioned above the response time of a supplier is also a critical factor. The Metro Supplier Scorecard therefore also measures the so-called Order to Delivery Lead Time. This term refers to the time between issuing an order and the goods being delivered. Thanks to this key figure METRO Group can see immediately which suppliers need a long time to deliver ordered goods. In close cooperation with manufacturers the retailing group can then explore how these processes can be accelerated and how costs can be cut.
Dedicated to the Best
Targets can be defined between Metro and suppliers for every key figure, which allows a comparison of budget and actual figures. In the future these KPI targets are to be determined and coordinated in buyers’ meetings with suppliers. Ideal values for Lead Times have been defined for every sales division and for every goods group. At the present each store is maintaining this data which may lead to differences. This is the case if the schedules agreed with stores and those agreed with the central procurement division are different. As a consequence the Metro Supplier Scorecard shows poor performance if the agreed time with the central division is exceeded. The targets for key figures like Claim Free Deliveries are also to highlight improvement potentials and outline achievements. METRO Group is going to define and coordinate the KPI targets centrally for the entire group.
Quality Testing Promotion Campaigns
The Metro Supplier Scorecard also contains KPIs which measure the success of promotion campaigns. These include "Promotion Lift" and "End of Promotion Coverage". The key figure Promotion Lift compares regular goods sales with sales during a campaign. METRO Group can then clearly gauge the success of a promotion campaign. The term End of Promotion Coverage refers to the stock level measured at the end of a campaign. Excessive stock levels can be identified and reduced in future campaigns.
