How to Issue a Supplier Corrective Action Request (SCAR) Using ERP Receiving and Reject Data

From ERP data to a SCAR

1. 1Make sure receiving records the reject quantity and a reject reason code per PO receipt line, not only a general note.
2. 2Build a supplier quality query joining receipt lines, inspection results and vendor returns by supplier, part and period.
3. 3Compute 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.
4. 4Define 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.
5. 5Generate the SCAR in the QMS with supplier, PO, receipt, lot, part revision, nonconformance description and photos or measurements pre-filled from the ERP.
6. 6Set a response due date and require containment, root cause and corrective action from the supplier.
7. 7Hold future receipts of the affected part to enhanced inspection in the ERP until the SCAR is closed.
8. 8Feed SCAR status and outcomes back to the supplier rating and to the approved supplier list review.

The query and the metrics

-- 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;

Closing the loop in the ERP

Common 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.