Supplier Scorecard and the Cost of Switching
Single-supplier risk is invisible until it isn’t. It surfaces in exactly two ways: the supplier delays delivery, or the supplier knows you have nowhere else to go. The first costs you a quarter. The second costs you every negotiation after it.
A backup supplier is not “another place to get a quote”. It is making switching a real option — not a threat, an actual capability.
Five things worth measuring
| Dimension | What to look at | Where to record |
|---|---|---|
| Parameter consistency | Spread of measured values across batches | Inspection sheet values |
| Delivery reliability | Promised ship date versus actual | Days late |
| Packing compliance | Units per carton, corners, lining as agreed | Number of deviations |
| Claim responsiveness | Days from claim to a proposal | Response days and outcome |
| Quote stability | Validity honoured; price changes notified early | Count and size of changes |
The earliest warning among the five is packing compliance, because packing is the easiest thing to simplify quietly — one less lining layer, one fewer corner guard, two extra units per carton. It never appears in a quality report, and it turns straight into damage rate and a second purchase order.
A backup is not “split the order in two”
Splitting the volume looks like diversification and behaves like losing on both sides: small volumes, higher prices, later production slots. The better structure is primary supplier plus a maintained bench.
The primary takes the main share — volume and price advantage, and the main delivery obligation.
The bench stays switch-ready: sealed sample on file, parameters aligned, a valid quotation, a quoted lead time. No orders needed, but the ability to start at short notice.
Keeping a bench costs very little — one small trial order or one sample run a year is enough to keep the relationship and the technical alignment live.
Switching cost: what decides whether you really can
Changing suppliers is not a phone call. Three costs decide whether it takes three days or three months:
Tooling. Where custom moulds exist, switching means re-tooling or transferring them. Both take time and money.
Sealed sample and print assets. Plates, cartons and insert cards are redone, and the new supplier’s colour baseline differs, so shades must be re-approved.
Certification and documents. Test reports and material declarations for export markets are issued per factory; they do not transfer.
That is precisely why the bench has to be maintained before anything goes wrong. Start looking the week supply stops and the switching cost jumps an order of magnitude.
When to activate a second supplier
Three signals; any one is enough.
Category concentration. One category above thirty percent of total spend — high-frequency consumables such as overgrips reach that share easily under one supplier, sourced from a single supplier.
Two or more consecutive delivery delays. Once is an accident; twice is capability.
Slower claim response. Going from “a proposal in three days” to “still investigating after two weeks” usually signals a capacity or management problem.
There is also a quieter signal: quotations becoming vague — no validity, no combination rules, no packing detail. Vagueness is rarely carelessness; it is room to manoeuvre.
How to put this into practice
One, build a five-line scorecard. Score quarterly, from records rather than impressions. The data comes from inspection sheets and delivery logs, so no extra work.
Two, maintain one or two bench suppliers a year. No large orders — just the ability to quote, to state lead time, and to hold a sealed sample.
Three, cost the switch. Tooling, print assets, certification — write down how long each takes. That number is your real negotiating position.
Four, share the scorecard. Most suppliers will improve when given benchmarkable figures rather than “quality is not good enough”.
On timing: the right moment to find a second supplier is while everything is fine. Start after a failure and you have neither time to compare terms nor room to absorb a trial run — you end up accepting whatever is offered, which is the real cost of single-source risk.
Frequently asked questions
Is ordering from two suppliers safer?
More diversified, less efficient. Split volume loses on both price and scheduling; a primary plus a bench usually beats it.
Will a bench supplier drift away without orders?
Yes, over time. A small order or a sample run once a year keeps the technical and response channels alive at low cost.
Should the scorecard be shared with suppliers?
Recommended. Specific metrics and targets produce improvement; vague complaints do not.
How fast can a switch happen?
Depends on tooling and print assets. Standard products without customisation can take weeks; custom moulds and printed cartons usually take two to three months.
Want a supplier scorecard?
If you are choosing a second source or assessing an existing one — and want a five-line scorecard you will actually use — send us the category and your spend structure and we will return a version with targets. Talk to our team.