Inventory how-to

How to build a supplier scorecard

A supplier scorecard is a simple table you keep per supplier, tracking lead time accuracy, fill rate, and defect or return rate over time.

Short answer: A supplier scorecard is a simple table you keep per supplier, tracking lead time accuracy, fill rate, and defect or return rate over time. You do not need special software. A spreadsheet updated each time you receive a purchase order is enough to spot which suppliers are reliable and which are costing you sales.

What to track

Track four things per supplier: promised lead time vs actual lead time, order fill rate (units received vs units ordered), defect or damage rate, and price consistency (did the invoice match the quote). Add a column for communication, like whether they confirmed the order and told you about delays without being chased.

How to score it

Score each metric on a simple scale, like 1 to 5, or just track the raw numbers (days late, percent short-shipped). Raw numbers are more useful than scores because they feed directly into your safety days. A supplier who is reliably 3 days late is different from one who is late once by 3 weeks. The pattern matters more than a single bad order.

How often to update it

Update the scorecard every time a purchase order arrives, not just once a quarter. Waiting too long means you forget details and end up guessing. If you receive weekly or biweekly from a supplier, you will have a solid picture after 3 to 4 orders.

What to do with the results

Use the scorecard to set safety days per supplier, not one blanket number for everyone. A supplier that is consistently on time might need only 2 to 3 safety days. One that is erratic might need 10 or more. Also use it to decide who gets backup suppliers and who you can rely on for fast-moving SKUs.

Step by step

  1. List your active suppliers in a spreadsheet, one tab or section each
  2. Add columns: order date, promised delivery date, actual delivery date, units ordered, units received, defects or returns, notes
  3. Fill in the columns every time a purchase order is received, including partial receipts
  4. After 3 to 4 orders, calculate average lead time and average delay in days for each supplier
  5. Calculate fill rate as units received divided by units ordered, as a percentage
  6. Set safety days per supplier based on their average delay plus a buffer for their worst case
  7. Review the scorecard every quarter and adjust safety days if a supplier's pattern changes

Worked example

A store orders from two suppliers. Supplier A promises a 10-day lead time and over 4 orders arrives in 9, 11, 10, and 13 days, averaging 10.75 days with one late outlier. Supplier B promises 14 days and arrives in 20, 22, 19, and 21 days, averaging 20.5 days, consistently late by about 6 days. The store sets safety days of 3 for Supplier A (close to promised, small buffer) and safety days of 8 for Supplier B (consistently late, bigger buffer), rather than using the same 5 safety days for both.

How SteadyShelf helps

SteadyShelf does not build or store a supplier scorecard. It does let you set a different lead time and safety days per supplier, so once you have scored your suppliers manually, you can plug those numbers straight into each supplier's settings and let the order-by dates reflect their real reliability.

$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

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FAQ

Can I automate supplier scorecard tracking inside SteadyShelf?

No. SteadyShelf tracks lead time and safety days per supplier for forecasting purposes, but it does not log fill rates, defects, or score suppliers over time. You need a separate spreadsheet for that.

How many data points do I need before trusting a supplier's average lead time?

Three to four orders gives you a reasonable average. Fewer than that and one unusual delay or a rushed order can skew the picture. If a supplier is critical to your top sellers, wait for more history before loosening their safety days.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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