# How to Issue a Supplier Corrective Action Request (SCAR) Using ERP Receiving and Reject Data > Source: https://netray.co/erp-help/qms-supplier-scar-from-erp-receiving-reject-data > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer Supplier quality starts with three ERP datasets: PO receipts (what arrived and when), receiving inspection results (what failed and why), and NCRs or vendor returns (what it cost). Join them by supplier and part to compute reject rate and on-time delivery, set thresholds that trigger a SCAR, and attach the evidence lots to the request so the supplier can investigate. ## Kind how-to ## System mfg-systems ## Erp QMS to ERP integration ## Module Supplier Quality / SCAR / Receiving Inspection ## Query how to issue a SCAR using ERP receiving and reject data ## Alternate Queries - supplier corrective action request from ERP receipts - supplier scorecard PPM on-time delivery from ERP - when to issue a SCAR to a supplier - AS9100 8.4 supplier performance monitoring ERP ## Applies To AS9100 and ISO 9001 clause 8.4 control of externally provided processes, products and services; any ERP with purchase receipts and inspection or reject recording; any QMS that issues SCARs ## Steps ### From ERP data to a SCAR **Items:** - Make sure receiving records the reject quantity and a reject reason code per PO receipt line, not only a general note. - Build a supplier quality query joining receipt lines, inspection results and vendor returns by supplier, part and period. - Compute reject rate as rejected quantity over received quantity, scaled to parts per million for high-volume parts, and on-time delivery as receipts on or before the promise date. - Define SCAR triggers in writing: a single critical escape, repeat rejects for the same cause code, or a rate above a threshold you set per commodity. - Generate the SCAR in the QMS with supplier, PO, receipt, lot, part revision, nonconformance description and photos or measurements pre-filled from the ERP. - Set a response due date and require containment, root cause and corrective action from the supplier. - Hold future receipts of the affected part to enhanced inspection in the ERP until the SCAR is closed. - Feed SCAR status and outcomes back to the supplier rating and to the approved supplier list review. ## Sections ### What clause 8.4 expects **Body:** AS9100 and ISO 9001 require you to define the controls on external providers according to the risk they pose and to monitor their performance. The evidence an auditor wants is a defined method, data that follows it, and actions when results are poor. A SCAR is the usual action: a formal request to the supplier to contain, find the root cause, and prevent recurrence. The ERP already holds the raw data. Every receipt has a supplier, part, quantity and date. Every inspection that fails has a quantity and, if the process is set up well, a reason. What is usually missing is the join and the discipline of reason codes. Without codes, you can say that a supplier had rejects but not what kind, which weakens the SCAR and makes trend analysis meaningless. ### The query and the metrics **Body:** Reject rate and delivery are the two basics. Reject rate is rejected over received, per supplier and optionally per part. On-time delivery compares receipt date to the promise or need date on the PO line, and you must decide whether early deliveries count as on time, since many plants penalize them too. Add the cost of poor quality when your ERP allows it: return freight, rework labor and line-down time attributed to the NCR. **Code:** -- Shape of the supplier quality query (names vary by ERP) SELECT v.vendor_no, r.part_no, SUM(r.qty_received) AS received, SUM(r.qty_rejected) AS rejected, 1000000.0 * SUM(r.qty_rejected) / NULLIF(SUM(r.qty_received),0) AS ppm, AVG(CASE WHEN r.receipt_date <= r.promise_date THEN 1.0 ELSE 0 END) AS on_time FROM po_receipt_line r JOIN vendor v ON v.vendor_no = r.vendor_no WHERE r.receipt_date >= :period_start GROUP BY v.vendor_no, r.part_no; ### Setting thresholds that are fair **Body:** A single reject on a lot of ten is not the same as one on a lot of ten thousand. Use rate for volume and a count of lots or events for low-volume supplier parts. A critical characteristic, such as a safety or flight-critical feature, should trigger a SCAR on a single escape regardless of rate. Commodity thresholds may reasonably differ: castings and machined parts tolerate a different baseline than electronic components. Distinguish supplier-caused rejects from your own. A part rejected because your drawing was ambiguous, or because incoming inspection used the wrong gauge, should not hurt the supplier's rating. The reason code at receiving inspection is what lets you separate them, and it protects the relationship when you do send a SCAR. ### Closing the loop in the ERP **Body:** A SCAR that closes on paper but changes nothing in purchasing is theater. When one opens, the ERP should reflect it: an enhanced inspection flag on the item and supplier, a note visible to buyers on PO entry, and in serious cases a restriction on new POs through the approved supplier status. When the SCAR closes with verified effectiveness, lift the controls. Share the scorecard with the supplier on a regular cadence, with the receipt and lot evidence behind each number. Suppliers respond to specific lots and dates, and they are more likely to challenge a vague complaint than a documented one. ## Pitfalls - Recording rejects as a note on the receipt, so reason codes and rates cannot be queried. - Counting early deliveries as on time when they cause storage and cash flow issues, or the reverse, without stating the rule. - Applying one reject threshold to every commodity and every volume. - Rating the supplier for rejects caused by your drawing, specification or inspection error. - Opening a SCAR without lot, receipt and measurement evidence, which makes the supplier's investigation slow. - Closing the SCAR without removing or adjusting the ERP controls, or without verifying effectiveness. ## Ai Angle An assistant grounded in the ERP can answer questions such as which suppliers exceeded the reject threshold in the last quarter, show the receipt lines behind each figure, and prefill a SCAR draft with the PO, lot and reject details. It reads under the buyer's or quality engineer's ERP permissions and displays the query it ran. Issuing the SCAR and judging whether the supplier's response is adequate remain human tasks. ## Faq ### When should I issue a SCAR versus just returning the parts? **Answer:** Return the parts for a one-off defect with an obvious cause. Issue a SCAR when the issue is repeated, affects a critical characteristic, escaped to production or the customer, or reveals a system weakness at the supplier. Your procedure should define the triggers so the decision is consistent. ### Is PPM the right metric for every supplier? **Answer:** PPM suits high-volume repeat parts. For low-volume or one-off items a few pieces can swing the number wildly, so lot acceptance rate or reject event counts are fairer. Use more than one measure and keep the method written down for each commodity group. ### Can the ERP's vendor rating replace a QMS supplier module? **Answer:** For basic delivery and quality scoring, often yes, and the vendor's own rating tool may be enough. A QMS adds SCAR workflow, supplier audits, certifications and documents. If you only need numbers, stay in the ERP. If you need to manage responses and evidence, use a QMS and feed it from the ERP. ### How do I handle certificates and special processors? **Answer:** Store approved status, scope and expiry dates for each supplier in the approved supplier list, and check them at PO creation. For special process suppliers, the certificate and the process spec revision should be linked to each job, which also feeds the FAI package. ## Search terms SCAR supplier corrective action request, supplier quality ERP data, supplier scorecard PPM on-time delivery, receiving inspection reject reason code, AS9100 8.4 external providers, approved supplier list ERP, supplier rating from purchase receipts, vendor quality metrics ERP, enhanced inspection supplier --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json