Reverse Rating

Introduction
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Preface

GFMS has been rating its suppliers for several years already. However, this approach only represents one view, namely the view of GFMS. Now GFMS is going one step further by asking its suppliers to rate the satisfaction with GFMS. The resulting knowledge is intended to support the optimization of the interface between GFMS and its suppliers in a more comprehensive and systematic manner than has previously been possible. This approach defines the next step on designing an integrated customer-supplier relationship.

Advantages

This approach will establish a lasting partnership and the bonding of suppliers and customers is supported. As a consequence the services provided to GFMS will be optimized. Interface problems and "friction losses" will be detected and eliminated more rapidly. Moreover, the experience potential and the core competences of suppliers can be utilized. To the benefit of both parties the knowledge gained can be used for Benchmarking Studies. Finally, cost savings both for the supplier and the customer can be realized.

Conception

The customer-supplier relationship is broken down into four item specific categories "Company", "Technology", "Products" and "Processes". Each category is analyzed separately. In addition, a cumulated rating in terms of a "Satisfaction index" ranging from 0…100% reflects the overall satisfaction of the supplier with GFAC. The performance rating is entered on a scale of 0 to 100, with 0 saying that expectations are not at all fulfilled and 100 meaning that expectations are 100% fulfilled. Rating is supported by a Likert Scale with default values 0, 25, 50, 75, 100. The supplier has the opportunity to make comments for ratings below 50, provide explanations for his rating and indicate possibilities for improvement. Each question will also ask the supplier to rate his best customer with regards to every item. This Best-in-class comparison is intended to reveal high priority areas for improvement. The importance of each questions to GFMS is defined by fixed factors, not shown in the questionnaire. Subsequent to the analysis of the rating results, specific measures will be mutually discussed in workshops and agreed in writing as a formal "Target Agreement". In regard this as a first step moving from a classic supplier-customer approach towards a longterm partnership.

Best regards,

Markus Kuhl, 2nd of February 2012

Chief Procurement Officer Georg Fischer Machining Solutions