Sertus Supplier Ratings

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Sertus Supplier Ratings (SSR) are used to measure the capacity and capability of suppliers across a multitude of industries. The purpose is to be able to standardize supplier competency and compare factories from different backgrounds. Sertus uses these ratings, together with price quotes and other considerations, like location and logistics implications, to assess the attractiveness of quotes. The rating system is based on a score of up to 800 points and is subsequently adjusted to a 10 point scale for ease of use.

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Sertus Supplier Ratings

  1. 1. in t f Sertus Supplier Ratings www.asiatradepro.com Sertus LLC. © 2011
  2. 2. Jay Peirce Sertus Supplier Ratings(305) 215-3414 September 2005jay@sertusllc.comA Supplier Rating SystemSertus Supplier Ratings (SSR) are used to measure thorough analysis of all operating procedures arethe capacity and capability of suppliers across a included in our rating system and we pay particularmultitude of industries. The purpose is to be able attention (and scores are weighted accordingly) toto standardize supplier competency and compare quality assurance and quality control proceduresfactories from different backgrounds. Sertus uses and equipment, both for inbound receipts of rawthese ratings, together with price quotes and other materials and inputs as well as for in-process andconsiderations, like location and logistics finished goods inspections. International tradeimplications, to assess the attractiveness of quotes. capacity and experience is ascertained as well asThe rating system is based on a score of up to 800 experience with destination market norms,points and is subsequently adjusted to a 10 point standards and other import criteria. The ratingscale for ease of use. system accounts for certifications (e.g. ISO9001, OHSAS18001, CSR, COC – Code of Conduct,Sertus ratings contemplate a wide array of criteria FSC, PEFC, BSCI, SEDEX, SEMTA, ETI,and the methodology has grown in sophistication SA8000, ICTI, C-TPAT, GSV, Wal-Mart FCCA,over the years as we continue to refine the system etc.) and scores are adjusted to reflect years into accurately reflect changes in industry practice. compliance. Sertus also considers references fromOur ratings are based mostly by information existing clients as very important. We look closelyfurnished by the supplier being reviewed, although at the type and length of relationships that arethere are many pieces of information that we maintained by entities under review. Productobtain independently. Sertus assigns a rating only innovation scores are tabulated and concentrationwhen there is adequate information available to risk is also considered.form a credible opinion, and only after applicablequantitative, qualitative, and legal analyses are The Ratings Processperformed. Ratings are required for any factory with whichThe Analytical Framework Sertus is currently working or where a working relationship is anticipated. A factory audit isThe analytical framework is divided into several performed and all information gathered during thecategories to ensure that salient qualitative and audit is captured in our audit database. A ratingsquantitative issues are considered. Proper scorecard is completed and the factory rating isassessment of the capability of any supplier under calculated. Ratings must be approved by ourevaluation includes a thorough review of business Ratings Committee and once approved arefundamentals, including an examination and uploaded into the Ratings Database. All ratings forscoring of several criteria that measure the active suppliers are reviewed at least on a yearlysurvivability of the entity and ultimately the basis unless a material change in condition wouldcapacity to absorb refunds in any potential dispute warrant a more frequent review.that might arise. Our assessment involves ananalysis of the supplier’s vulnerability to Use of Ratingstechnological change, labor unrest and regulatoryaction. Industries that have long lead times or that SSRs are utilized to assess the attractiveness ofrequire a fixed plant of a specialized nature face quotes received by existing and prospectiveheightened risk. We review management suppliers. In determining selection of primary andexperience, effectiveness, and oversight. A secondary suppliers for a particular product, Sertus
  3. 3. Jay Peirce Sertus Supplier Ratings(305) 215-3414 September 2005jay@sertusllc.comwill also review other criteria that are notspecifically incorporated into the SSR. The ratingwill help determine the overall overheadtransferred in (OTI) on a particular piece ofbusiness. For example, factories offering a lowprice but that score low SSRs will require a higherOTI due to greater QA/QC resources that areneeded to ensure on-time delivery. The OTIadjustment to price may no longer make the “lowprice” supplier the most attractive alternative.There are also other elements that impact the OTI,like factory location (which impacts the directexpense of sending QA/QC personnel forinspections, the inland freight expense to getproduct to port etc.) or other services that Sertusmay be required to attach to an order because thesupplier is not capable of including them or notcapable of meeting Sertus standards for theseservices (e.g. printing, artwork design, etc.).For more information, please contactinfo@sertusllc.com or visit www.asiatradepro.com

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