SCR
SCR - The Supplier Capability Review

It is common to select suppliers using the traditional Technical Bid + Commercial Bid. 
The bidders present their proposals in separate sealed packages and the buyer applies a formula to “quantify” each bid. 
A weighting is normally applied to the technical and commercial components of each bid to aggregate to a numerical winner. 
Such processes can be lengthy and extremely complex. 

One of the major difficulties for companies is in the assignment of a numerical value to a bid and the respective weightings. This can be difficult  when the bidders do not offer exactly the same specifications . 
This is especially true for service contracts.

The SCR – Supplier Capability Review – introduces a third element to the selection process.

The SCR is an in-depth and in-house review of the key quality processes of a supplier. 
Such processes (meaning how they do it!) may include such areas as Customer Satisfaction, 
Product quality, or how they manage their people. 

The review is normally undertaken by a qualified multi-disciplinary evaluation team from the customer. 
The quantified evaluation of the supplier’s key processes provides a non-subjective and more robust 
set of criteria to assist in the supplier selection beyond the technical and commercial bids. 

In a real-life multi-million dollar service tender example, the tender team, having not previously used the SCR methodology, initially placed 60% weighting on the technical bids, 30% on the commercial bids and 10% on the SCR. The tender process was completed and the contract was duly awarded. 

However, after experiencing the SCR, the tender team decided that for future tenders, they would 
place 10% on the Technical Bids, 20% on the Commercial bids and 70% on the SCR! 
They concluded that the Technical bids were 90% cut-and-paste. 

That’s how powerful the SCR is. 

The SCR can also form the base-line for a supplier development program.

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