Monitoring Supplier Quality

You can determine whether a supplier has a history of delivering a specific item in good condition by reviewing quality performance information. To ensure that this information is accurate, you must indicate how you want the system to identify acceptable and unacceptable items.

Quality performance information includes the percentages of an item that were acceptable and unacceptable in a fiscal period. The system calculates each percentage based on how you categorize items that you remove from a receipt route, including:

• Returns

• Reworks

• Scrap

• Rejects

• Adjustments

You must specify which categories reflect acceptable and unacceptable items. For example, if you specify that the scrap category is unacceptable, each time you remove an item from a receipt route as scrap, the system classifies the item as unacceptable.

You must use receipt routing to capture quality information.