About this guide: Wahl evaluates all direct material suppliers on a 100-point scorecard reviewed quarterly and annually. This guide explains exactly what we measure, the targets for full credit, and how your overall score determines your supplier classification. We share this openly so you can understand where you stand and what levers you have to improve.
Commodity applicability: The scoring methodology and category targets described in this guide represent the standard framework applied across Wahl's direct material supply base. Specific targets, weighting adjustments, or supplementary criteria may be applied to individual commodity categories based on the nature of the material, process complexity, or strategic sourcing objectives. Any commodity-specific modifications will be communicated to affected suppliers in writing by their Wahl Sourcing contact and take precedence over the general targets stated here.
Scorecard Overview — 5 Categories · 100 Points Total
| Metric |
Points |
Target for Full Score |
What We Measure |
|
APPV — Financial
Annual Purchase Price Variance
|
20 pts |
≥3% cost reduction |
Net year-over-year price change across your item portfolio, weighted by spend. VAVE savings count toward your score at 25% credit. |
|
Payment Terms
Cash Flow Value
|
20 pts |
90 Equivalent Days |
Your net payment days plus the cash discount equivalency you offer. Each 1% early-pay discount equals 30 additional equivalent days. |
|
Lead Time
Supply Chain Agility
|
20 pts |
YoY reduction |
Actual lead time from D365 tracked year over year against your category benchmark. Improvement is expected; increases are penalized. |
|
OTIF Delivery
On-Time In-Full
|
20 pts |
≥99.0% |
Percentage of purchase orders delivered on time and in full per the PO need date. Scored proportionally below 99%. |
|
Quality
Incoming Rejection Rate
|
20 pts |
<300 PPM |
Parts Per Million rejection rate on incoming inspection at Wahl. Supported by Cpk ≥1.33 in-process capability requirement. |
Category Detail
1 · APPV — Annual Purchase Price Variance
Financial performance · Spend-weighted
20 pts
Target
≥3% net cost reduction year over year
We calculate the price variance for every item in your portfolio — comparing what we paid this year versus last year — and weight the result by spend. The goal is a net 3% or greater reduction across the portfolio.
VAVE Credit: Cost savings from completed VAVE (Value Analysis / Value Engineering) projects are credited toward your APPV score at 25% of the documented savings value. This means every dollar you save through a VAVE project partially offsets price increases elsewhere. Suppliers who invest in VAVE collaboration consistently achieve stronger APPV scores even in years with commodity-driven price pressure.
2 · Payment Terms
Cash flow value to Wahl
20 pts
Target
90 Equivalent Days
We measure the total cash flow value of your payment terms using an equivalency formula: your net days plus the cash discount value converted to equivalent days.
Equivalency formula: Net Days + (Discount % × 30). For example, terms of 1% 20 Net 90 score as 90 + (1 × 30) = 120 equivalent days — exceeding the 90-day target. Standard Net 60 terms score at 60 equivalent days, which falls below target. Offering an early-pay discount is a simple, zero-cost way to improve this category.
3 · Lead Time
Supply chain agility · Spend-weighted actuals from D365
20 pts
Target
Year-over-year reduction vs. category benchmark
We track actual lead time — the time from PO placement to receipt — for every item, weighted by spend. Your actual lead time is compared against your quoted lead time and against the category/industry benchmark.
Improvement is expected. Increases in lead time are penalized regardless of cause. If your lead time is already at or below the category benchmark floor, flat performance is acceptable for full credit. Significant reductions — through vendor-managed inventory programs, buffer stock, or manufacturing improvements — earn full marks and strengthen the relationship.
4 · OTIF Delivery — On-Time In-Full
Delivery reliability per PO need date
20 pts
Target
≥99.0% On-Time In-Full
Every purchase order is measured against the PO need date. A delivery counts as OTIF only if it arrives on or before that date and in the full quantity ordered. Partial shipments and early deliveries that are held are counted separately.
Scoring: Full 20 points at 99.0% and above. Below 99%, points scale proportionally — each percentage point below target reduces the score. A 96% OTIF score yields approximately 15 points. Persistent OTIF gaps trigger a formal corrective action discussion at the next QBR.
5 · Quality — Incoming Rejection Rate
Parts Per Million on incoming inspection
20 pts
Target
<300 PPM
PPM (Parts Per Million) is calculated as: (rejected pieces ÷ total pieces received) × 1,000,000. Rejections are recorded at incoming inspection at Wahl's receiving facilities. Each nonconformance is documented in an NCR (Nonconformance Report) with root cause and CAPA required.
Process capability: Your in-process capability is expected to meet Cpk ≥1.33 for all critical-to-function (CTF) characteristics per the Supplier Quality Agreement. Suppliers shipping to the Sterling, IL facility are subject to PPAP/PSW requirements for new items. Sustained quality above 300 PPM will require a corrective action plan submitted within 30 days of notification.
Scoring Scale — Per Category (0–20 Points)
18–20 pts
Meets or exceeds target — full or near-full points awarded
14–17 pts
Approaching target — strong performance with a minor gap; improvement targets set
8–13 pts
Below target — formal improvement plan required and reviewed at next QBR
0–7 pts
Significantly below target — corrective action triggered; business impact review initiated
Supplier Classification — Overall Score (0–100)
Category 1
85–100
Strategic Partner
Preferred for new programs and extended agreements. Eligible for collaborative VAVE investment and joint development initiatives.
Category 2
75–84
Preferred Partner
Approved for standard business. Specific improvement targets are set and reviewed at each QBR for identified gaps.
Category 3
< 75
Approved Supplier
Formal corrective action plan required. Business review triggered. Continued qualification subject to demonstrated improvement.
Review Cadence
Annual Business Review (ABR)
All direct material suppliers receive a full-year scorecard review held annually, typically in Q1. Covers all five categories, spend trends, VAVE achievements, and forward targets for the year. Your ABR score determines your supplier classification for the coming year.
Quarterly Business Review (QBR)
Quarterly reviews are conducted with top-spend suppliers and are scheduled by your Wahl Sourcing contact. QBRs cover the current scorecard snapshot, open items, VAVE pipeline, and any corrective action updates. If you have not been invited to a QBR, your performance is still tracked and reflected in your annual ABR.
How to Improve Your Score
| Category |
Highest-Impact Actions |
| APPV |
Propose VAVE projects — every $100K in documented savings adds $25K toward your APPV credit. Work with your Wahl contact to identify cost reduction opportunities before year-end close. |
| Payment Terms |
Offer an early-pay discount. Even a 1% discount converts to 30 equivalent days — moving Net 60 terms to 90 equivalent days and hitting full-score threshold with no change to your net payment date. |
| Lead Time |
Review your quoted vs. actual lead times in D365. Large gaps between quoted and actual time penalize both scores. Consider stocking programs, min/max buffer agreements, or blanket PO arrangements to reduce cycle time. |
| OTIF |
Communicate proactively when delivery is at risk — unplanned shortfalls are penalized more than disclosed issues managed in advance. Provide advance ship notices (ASNs) and confirm PO need dates at order acknowledgment. |
| Quality |
Review your NCR history before each business review and come prepared with documented root cause and corrective actions. Sustained PPM above 300 requires a written CAPA within 30 days. Proactive quality data sharing — incoming Cpk reports, process audits — is valued and noted. |
