Two numbers describe a vendor relationship better than any scorecard: the share of volume sitting on one supplier, and the number of qualified alternatives. When the first is high and the second is zero, the buyer has a dependency rather than a supply base, and the next capacity problem is a negotiation without a fallback.
Charger vendor management: the five decisions
Five decisions: how many suppliers the programme needs, what each is measured on, the review rhythm, how a second source is kept warm, and the exit conditions.
Each decision is taken once and then maintained, which is what distinguishes management from purchasing. The maintenance is small: a review each quarter, a scorecard with two or three numbers, and a dated capacity answer per supplier.
The order matters because the measurement follows the structure. A programme with one supplier and no second source cannot be managed through scorecards, because the only available response to a problem is to accept it.
Decision 1: how many suppliers the programme needs
One qualified supplier is a dependency; two is a supply base.
The number follows the exposure: volume concentration, the number of markets, the certification dependency and the cost of a stop. A single-supplier programme is workable where the platform is stable and the volume is small, provided the alternative is qualified before it is needed. Where the product carries a certification dependency and a season, two qualified suppliers with an agreed split is the practical minimum.
Decision 2: what each supplier is measured on
Two or three numbers, and none of them is price alone.
The useful set is on-time delivery against the confirmed date, first-pass yield or the defect rate at the buyer’s own receiving inspection, and the closure rate of corrective actions. Price belongs in the commercial review rather than in the operational scorecard, because a scorecard that leads with price encourages the supplier to protect the price at the expense of the numbers that follow it.
Decision 3: the review rhythm and what it produces
A quarterly review with four inputs and one output.
The inputs are the delivery record, the quality record, the capacity answer for the next quarter and the open corrective actions. The output is a decision: continue, adjust the volume split, or open a corrective action with a date. Reviews that produce a discussion instead of a decision accumulate until the first delivery problem forces one.
Decision 4: how the second source is kept warm
Qualified, piloted and dormant is the useful state.
A second source that has never run the product is not an alternative. Keeping one warm means the specification has been issued, the platform identified, a pilot completed and the terms agreed, with a small order placed periodically to keep the records current. That maintenance costs a pilot a year and it removes the lead time from a switch, which is the difference between a schedule change and a restart.
Decision 5: the exit conditions
What it costs to leave, and how quickly it can be done.
The exit depends on three items: the tooling and its identification, the design and certification files, and the notice period in the terms. A programme that cannot answer those three is not protected by its relationship, because the negotiation happens at the moment when the buyer has the least leverage. Writing the exit conditions at the start is what makes the rest of the relationship commercial rather than personal.
| Decision | What it sets | Record | Where it fails |
|---|---|---|---|
| Supplier count | The exposure the programme carries | A qualified supplier list | One supplier and no alternative |
| Measurement | What the review acts on | Two or three numbers per supplier | A scorecard led by price |
| Review rhythm | The decisions taken each quarter | A dated review record | Discussion without a decision |
| Second source | The time needed to switch | A pilot record and terms | A name with no pilot |
| Exit conditions | What leaving costs | Tooling and notice clauses | No tooling identification |
Scorecards that change behaviour
A scorecard works when it has consequences attached.
Two numbers per supplier, reported each quarter, with an agreed response: a delivery miss above the agreed threshold reduces the volume share, and a quality escape opens a corrective action with a verification date. Without the consequence the scorecard becomes a report, and suppliers learn which numbers are collected rather than which are acted on.
What vendor management is not
Three activities that look like management and are not.
Collecting certificates, because they describe the organisation rather than the product; running annual audits with no follow-up, because findings without owners repeat; and negotiating price annually while leaving capacity unchecked, because the delivery date is what the channel experiences. Each of the three consumes the meeting time that the five decisions need.
FAQ
How many suppliers should a programme carry?
Two qualified suppliers is the practical minimum for a product with a certification dependency and a season deadline, with a defined volume split. A single supplier is workable for a stable, low-volume product provided an alternative is qualified in advance. Two qualified suppliers is the practical minimum for a product with a certification dependency and a season deadline, with a defined volume split.
What should be on the scorecard?
On-time delivery against the confirmed date, the defect rate at the buyer’s own inspection, and the closure rate of corrective actions. Price belongs in a separate commercial review, because it influences the other three when it leads the scorecard. Track on-time delivery against the confirmed date, the defect rate at your own inspection and the closure rate of corrective actions, and keep price in a separate review.
How often should suppliers be reviewed?
Quarterly for active suppliers, with a documented decision each time and an annual commercial review. The frequency matters less than the decision: a review that ends without one adds nothing to the next quarter. Review active suppliers quarterly with a documented decision each time, because a review that ends without one adds nothing to the next quarter or to the relationship.
What if the supplier refuses a re-qualification or an audit?
The clause in the supply terms is what makes the request contractual. Where no clause exists, the buyer’s options reduce to accepting the change or reducing the volume share, which is why the clause belongs in the terms from the start. The clause in the supply terms is what makes the request contractual, and without one the buyer’s options reduce to accepting the change or reducing the volume share.
Next step
Send the current supplier list, the volumes and the products to Wecent Group through the contact page. The reply states which platforms and certifications a second source would need, the pilot plan to qualify it and the tooling and notice arrangements for the exit. Related reading: OEM and ODM charger manufacturing, wholesale charger programmes and the factory floor. External references: IEC standards, ICC Incoterms rules, BSI ISO 9001 quality management, IQNet certification network, UL standards and certification and International Trade Centre Trade Map.
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