Vendor rating
Definition
Open Fiber S.p.A. utilises a Vendor Rating system as a performance measurement tool to evaluate the suitability of economic operators against the service levels stipulated in their assigned contracts.
For all active suppliers, a score is attributed per individual contract, taking into account performance and assigned based on well-defined performance parameters. These scores are then aggregated and synthesised into a single value for the supplier within the relevant activity group.
Objectives
The objective of this tool is to identify sensitive areas and to aim for greater efficiency within the supply chain.
The main advantages of using the system include:
- Objectivity of judgment
- Performance improvement
- Timely identification and correction of critical issues
- Development of performance-based awareness and culture
- Implementation of reward systems
The Open Fiber model
The Vendor Rating model at Open Fiber S.p.A. is applied to goods, services, and works, and is specific to the commodity category covered by the assigned contract. The rating is calculated by taking into account the performance of the supplier under review, recorded over a predefined cyclical timeframe.
Open Fiber S.p.A.’s Vendor Rating system involves the numerical and systematic detection of supplier performance parameters related to the following macro areas:
- Quality of goods supplied/works and/or services performed
- Timeliness of performance
- Health and safety
The Vendor Rating Index (known as IVR), obtained as a result of the aforementioned assessments, is used for the overall evaluation of each supplier with reference to different types of performance and/or goods supplied.
Based on the score obtained, in descending order, Open Fiber S.p.A. reserves the right to apply the following actions:
- Request the supplier to implement improvement actions
- Request the supplier to implement corrective actions
- Suspend the supplier from the Supplier Register/Access Mechanism
- Exclude the supplier from the Supplier Register/Access Mechanism
Open Fiber will periodically communicate the IVR to the supplier. The IVR calculation parameters are detailed in the document “Vendor Rating Indicator”.