Supplier Performance Assessment

Our suppliers are a valued and integral extension of our enterprise. The overall performance of ABB's supply chain directly impacts our ability to support our customers' requirements.

ABB is committed to improving supplier's performance through a standardized Supplier Performance Rating process. The process consists of a data-driven approach to regularly measure and provide feedback to suppliers. This feedback enables ongoing communication, continuous process improvement, and supplier development.

Furthermore, this process focuses ABB and our suppliers on the critical business issues that must be addressed to better support ABB’s customer requirements.

The Supplier Performance Rating process measures and monitors the following Key Performance Indicators (KPIs):

	Quality	% defect-free lots received
	Delivery	% of all shipped received complete and on time, based on agreed Incoterms

The Supplier Performance Rating score is then used as the basis for future sourcing decisions and for annual awards and recognition.