To develop a mutually beneficial relationship with suppliers by aligning expectations and promoting performance improvement, the IADC Supply Chain Committee has developed standard supplier metrics and a scorecard. The supplier metrics were evaluated on impact to the supply chain process and the measurability by both suppliers and drilling contractors. These metrics are considered to provide the highest impact to the procurement process and considers safety, quality, delivery and service metrics.
The IADC supplier standard metrics are:
- Service safety performance (Service);
- Revenue impact due to poor quality (Service & Parts/Equipment);
- Non-conformances (Parts/Equipment);
- On-time delivery (Parts/Equipment);
- Percentage late (of current orders) (Parts/Equipment);
- Aged overdue open PO lines (Parts/Equipment);
- Invoice accuracy (Service & Parts/Equipment); and
- Price variance (Service & Parts/Equipment).
The standard metrics will be used to create a balanced scorecard that drillers can share with suppliers so they understand the driller’s priorities and expectations, and are relevant and meaningful with their areas of expertise and business.
The IADC Supply Chain Committee will be working closely with drillers and suppliers throughout 2018 to ensure a smooth implementation. To learn more about the supplier metrics, scorecard and to see FAQ, go to http://www.iadc.org/supply-chain-committee/resources/