The Analysis of the Freshco Corporante Balanced Scorecard
The following report shows the analysis of a scorecard used by a company. The purpose is to create a tool that allows new methods to be included and to establish a framework for data collection in order to measure and classify Freshco suppliers. The analysis was based on the different types of evaluation or qualification, the intrinsic of the scorecard and the possible use not only for Freshco suppliers but also for Freshco customers. Additionally, some suggestions are shown to improve and adapt the scorecard under study to the company.
To begin with the preparation of this report, the chosen dashboard was one of the dashboards available in the links provided by the teacher which is shown in appendix a. The supplier is qualified under four categories which are cost/price, supply chain and production, quality and product development. the categories are evaluated individually where emphasis is placed on certain points and a brief explanation is given which helps the person being evaluated to have a clear picture of the points where they should focus their evaluation. In addition, each key point of the evaluations has a value represented in percentage, which allows the classification of the characteristics that are most important when evaluating the performance of the supplier. The criticality of the key points is described by their value. After the percentage is obtained for each of these key points, it is possible to obtain the percentage value of each of the categories. To calculate the final rate, the average of the four categories mentioned above is calculated, so it is possible to observe how valuable the service provided by the provider is. The rating is determined by colors, for a service classified as excellent is marked with the letter A and with the color dark green. In the case of a good quality service, the letter used is B and the color used is light green. Consequently, if the service is evaluated as regular, the letter C and the color yellow are granted and finally when the service is of poor quality, the letter D and the color red are granted. Once the range and the information shown are evaluated, it is possible to detect nonconformities which may affect the relationship between the supplier and the customers.
The scorecard model analyzed will be used to evaluate Freshco suppliers and is shown in Appendix B. To cover the needs of the Freshco supermarket chain, the scorecard will be modified and adapted. In the scorecard the main categories to observe will be Cost / price, supply / production, quality management and logistics. This tool has a very important characteristic and it is that it is possible to detect which are the critical points of the evaluated suppliers and in this way propose and take actions that correct the deviations that affect the needs of the client. After identifying these critical points, the recommendation is to collect and document the greatest amount of information where the nonconformity is visible and answering the questions of how, when, where and why the nonconformity happened by doing it objectively and thus helping to develop solutions and eliminate nonconformities by working together as a client and supplier looking for the root cause of the problem.
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