ABSTRACT
Imagine a measurement system that, when working e©ectively, o©ers the opportunity to reduce supply chain risk. Next, imagine the possible outcomes when such a system fails to work as intended. A number of years ago a consumer products company with $100 million in annual sales developed a scorecard system to measure supplier performance. Besides creating a system that was not validated and was less than professional in appearance, many larger suppliers challenged their scores, particularly when the scores were lower than what they received from their more sophisticated customers. e measurement system was such a nonstarter that it deterred the company from moving forward with its supplier measurement objectives. It also a©ected, and not in a good way, the company’s relationships with its suppliers. Not much in the way of risk reduction occurred here.
