Measured costs
Documented costs, such as premium freight, rework, additional incoming inspection or extra administrative effort.
Basis: measured costsMETHODOLOGY / SUPPLIER PERFORMANCE IN CONTEXT
Sound priorities start
with clear distinctions.
Performance describes delivery against expectations. Criticality describes dependency. Business Impact describes the business significance.
These perspectives are connected, but they are not interchangeable — and no single score can replace them.
PerformancePerformance → score, dimensions, trend
≠CriticalityDependency → supplier context
≠Business ImpactBusiness relevance → exposure
Performance + dependency + business relevance → priority
→ Action + ownership → follow-up assessment
01 / PERFORMANCEHow does the supplier
How does the supplier
perform in practice?
Delivery reliability, quality, collaboration and operational consequences create a multidimensional view of performance.
The current evaluation model covers 30 criteria across four calculation dimensions: Procurement, Research & Development, Plants & Planning, and Quality. Dimension scores reveal differences. Performance history shows progress. An overall score is a summary — it must not hide a critical weakness.
Meaningful comparisons require consistent periods, assessment dimensions and data. A missing value is neither a neutral nor a good score.
The four assessment dimensions02 / CRITICALITYWhich dependency
Which dependency
turns a deviation
into a business risk?
A supplier can perform well today and still be structurally critical. Conversely, weak performance with limited dependency may require less urgent action.
ExampleScore 72 / 100Single SourceProduction-critical materialLong replacement lead timeHigh dependency despite reasonable performance
- Kraljic segmentation
- Classifies procurement by business significance and supply risk. The classification affects how assessment criteria are weighted; it is not itself a performance judgement.
- Single Source
- A single source creates dependency. How quickly a suitable alternative could become available also matters.
- Supply Relevance
- How important is this supply to your operations? Missing material can affect different processes to very different degrees.
- Revenue Relevance
- Which revenue streams depend on this supply? Revenue relevance adds context to the assessment of dependency. It is not a calculated loss of revenue.
- Procurement spend
- Shows financial procurement weight and concentration. High spend alone proves neither high risk nor poor performance.
- Delivery frequency & structure
- Delivery frequency is an active contextual factor, alongside Single Source, supply criticality and safety relevance.
03 / BUSINESS IMPACT & RISK EXPOSUREExposed does not
Exposed does not
mean lost.
Risk Exposure gives supplier risk a business context. It is neither a guaranteed loss amount nor a prediction.
Estimated impact
A potential business consequence based on stated assumptions and a clearly defined scenario.
Basis: disclosed assumptionsStructural exposure
A business-relevant value linked to a dependency — for example, where supply or revenue relevance is high.
Basis: dependency & reference valueModelled Risk Exposure
A model-based financial view of risk; neither a recorded loss nor a forecast.
Basis: evaluation modelRealized savings
Documented cost reductions against a reliable baseline. A reduction in exposure alone is not sufficient evidence.
Basis: documented changeDo not add values without checking them.
Costs, estimates and exposed values may refer to different periods or overlapping consequences. Data, timeframes, assumptions and potential double counting must remain transparent.
04 / PRIORITY, ACTION, FOLLOW-UP ASSESSMENTTurn business significance
Turn business significance
into clear ownership.
A combined view explains where action should take priority. Every action needs a specific problem, a responsible person or role, a due date and an expected impact.
Performance history shows changes; a follow-up assessment can be initiated. Whether an action caused an improvement must be checked against implementation, available data and other influencing factors.
Here, improving value creation means focusing improvement work on relevant business consequences. It is not a general promise of savings.
Explore the action processYOUR DATA. YOUR BUSINESS CONTEXT.