Quality, Delivery and Cost (QD&C). These are the factors most used to determine the value of a supplier. They are also the aspects of performance that we can most easily calculate, compare and analyze. A green supplier scorecard that shows high OTD (on-time-delivery) and low DPM (defects per million), along with competitive pricing is the dream of both Buyer and Supply Chain Manager alike.
In the high-stakes market of Military Defense products, however, this is not quite enough. With programs taking years to develop and often requiring decades of production and support there is another critical factor in evaluating a critical supplier. A company’s ability to minimize risk over the life of the program is of epic importance.