Developing a model of vendor rating to manage quality in the supply chain

Purpose: This paper aims to present a model developed by an Italian company, Gamma, that produces technologically high-precision components, with the objectives of defining a model of vendor rating to improve companies’ management and quality within the supply chain. Design/methodology/approach: The research has been developed through a qualitative approach, based on a longitudinal single case study. Two semi-structured interviews have been carried out with the company’s Quality Manager in September 23 and October 31, 2016. Relevant secondary data were also used, such as company reports and their website. Findings: Owing to the implementation of the Gamma model, the company is committed to the prudent selection of its partners and in establishing lasting relationships of mutual benefit with them. The termination of the relationship with suppliers is therefore rare; monitoring periods and improvement of suppliers are preferred. The Gamma model and its suppliers jointly undertake corrective actions that have to be implemented within a defined time frame. Practical implications: Establishing criteria for an objective evaluation of suppliers could be directly or indirectly related to the quality of the final product, and greatly affects the same. This model has been effective for the identification of less performing suppliers that have to be subjected to improvement and audit plans. Originality/value: This model allows the assignment of penalties or rewards, identifies which suppliers to direct audits and improvement plans, with which to end the relationship and with which to establish a relationship of integration and direct involvement.