Supplier Performance Metrics and Scorecard

IADC GLOBAL

SUPPLY CHAIN COMMITTEE

Supplier Performance Metrics

and Scorecard (GU-IADC-SC-002)

Rev. 1

1

Copyrighted 2018, IADC

Unlimited license is hereby granted for reproduction of this

document in its entirety, or in part with appropriate

attribution.

This document contains recommendations from the IADC Supply Chain Committee that

developed metrics and a scorecard to be used as a standard guide in evaluating suppliers¡¯

performance throughout the procure-to-pay process.

IADC publications may be used by anyone desiring to do so. Every effort has been made by

IADC to assure the accuracy and reliability of the information contained in them; however, IADC

makes no representation, warranty, or guarantee in connection with this publication and hereby

expressly disclaims any liability or responsibility for loss, damage or penalty resulting from its

use or for the violation of any federal, state, or municipal regulation with which this publication

may conflict.

IADC is not attempting to fulfill any duties or obligations of employers, manufactures or agencies

to warn, train, or equip their employees or others who may be affected by their activities,

concerning any health, safety, or environmental risks or precautions.

Suggested revisions to the guidelines are invited and will be considered along with future

changes to its content. Suggestions should be submitted to the Director-Offshore Technical and

Regulatory Affairs, International Association of Drilling Contractors, 10370 Richmond Avenue,

Suite 760, Houston, TX 77042. (713-292-1945)

Controlled Material

The entire contents of this document are subject to change.

Please verify that you have a current copy with the most

recent page version(s) available from the IADC website.

2

Rev. 1.0 Date 04 April 2018

Copyright ? 2018, International Association of Drilling Contractors. All rights reserved.

Document Change History Sheet

Date

Version

Reason for Change

2015 Oct 30

Baseline

Baseline Document

2018 April 04

1

Added/Removed Performance

Measures

3

Rev. 1.0 Date 04 April 2018

Copyright ? 2018, International Association of Drilling Contractors. All rights reserved.

TABLE OF CONTENTS

TABLE OF CONTENTS

TABLE OF CONTENTS ............................................................................................................................... 4

PURPOSE AND SCOPE .............................................................................................................................. 5

SERVICE SAFETY PERFORMANCE (SERVICE) ...................................................................................... 6

REVENUE IMPACT DUE TO POOR QUALITY (SERVICE & PARTS/EQUIPMENT) ............................... 6

NON-CONFORMANCES (PARTS/EQUIPMENT) ....................................................................................... 6

ON-TIME DELIVERY (PARTS/EQUIPMENT).............................................................................................. 6

% LATE (OF CURRENT ORDERS) (PARTS/EQUIPMENT) ....................................................................... 7

AGED OVERDUE OPEN PO LINES (PARTS/EQUIPMENT)...................................................................... 7

INVOICE ACCURACY (SERVICE & PARTS/EQUIPMENT) ....................................................................... 8

PRICE VARIANCE (SERVICE & PARTS/EQUIPMENT)............................................................................. 8

SCORECARD ............................................................................................................................................. 10

CONCLUSION ............................................................................................................................................ 11

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Rev. 1.0 Date 04 April 2018

Copyright ? 2018, International Association of Drilling Contractors. All rights reserved.

Purpose and Scope

In an effort to develop a mutually beneficial relationship with suppliers, the IADC Supply

Chain Committee has created standard supplier metrics and a scorecard to align

expectations and promote performance improvement.

The supplier metrics were evaluated both on impact to the supply chain process as well

as the measurability by both suppliers and drilling contractors.

These metrics are considered to provide the highest impact to the procurement process,

and considers Safety, Quality, Delivery and Service metrics.

The IADC supplier standard metrics are:

?

Service safety performance (Service)

?

Revenue impact due to poor quality (Service & Parts/Equipment)

?

Non-conformances (Parts/Equipment)

?

On-time delivery (Parts/Equipment)

?

% late (of current orders) (Parts/Equipment)

?

Aged overdue open PO lines (Parts/Equipment)

?

Invoice accuracy (Service & Parts/Equipment)

?

Price variance (Service & Parts/Equipment)

The data collected from these metrics will be used to create a standard scorecard with

suggested weightings.

Any and all data collected from these metrics are to be strictly confidential within each of

the drilling contractors¡¯ organizations and not to be shared with anyone other than their

respective suppliers.

5

Rev. 1.0 Date 04 April 2018

Copyright ? 2018, International Association of Drilling Contractors. All rights reserved.

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