What is the difference between a supplier scorecard and a supplier performance review?

• A. A scorecard quantifies multiple metrics; a performance review is a formal assessment of supplier performance over a period.
• B. A scorecard is informal; a performance review is casual feedback.
• C. A scorecard tracks supplier capabilities; a performance review tracks contract compliance.
• D. A scorecard is used only for price evaluation; a performance review measures quality performance.

Answer: (C)

The main idea is to separate ability to perform from how well the supplier actually followed the contract. A supplier scorecard is a structured way to quantify multiple indicators of a supplier’s capabilities—things like capacity, quality potential, delivery reliability, responsiveness, and risk—so you can assess whether the supplier can meet current and future needs. A supplier performance review is a formal, periodic check of how well the supplier performed under the contract, focusing on whether they met terms such as on-time delivery, quality levels, service levels, pricing, and overall contract compliance. In short, scorecards look at capabilities across several metrics to gauge readiness and potential, while performance reviews evaluate actual contract fulfillment and adherence.