Update to Supplier Corrective Action Request (SCAR) Penalty System Logic
BAE Systems has revised the supplier corrective action request (SCAR) penalty system logic to improve supplier quality, encourage proactive management and ensure timely SCAR responses. These changes are now reflected in the latest supplier scorecard rollout, effective April 15.
Key Updates
• Proactive Penalty Reduction: Suppliers will no longer be penalized for the six-month reporting lifecycle. Suppliers may reduce penalties in as little as 30 days with D6 approval.
• Penalties Remain Until Approval: SCAR penalties will no longer drop automatically after six months. Instead, they will remain on the supplier scorecard until D6 approval is obtained.
Important Note
• Penalties may still be compounded. There are no changes to current calculation methods, meaning suppliers can receive multiple penalties for SCAR issuances, disruptions and related issues.
For information on this change, please download the documents below or reach out to your BAE Systems contact.
In today's competitive market, manufacturing high-quality, reliable products on time and at an affordable price is a prerequisite. The ability to successfully achieve this performance year after year continues to differentiate BAE Systems as a leading Aerospace and Defense manufacturer.
The dedication and determination to strive for excellence has resulted in BAE Systems’ focus on “Achieving Operational Excellence.”
BAE Systems is committed to continuous improvement and has created a “Quality First Mindset.”
Our Supplier Partners’ contributions are key, and, thus, we launched the next phase of this journey: “Partner 2 Win.”
BAE Systems Electronic Systems will:
- Redouble our efforts to partner with our suppliers, right-sizing our supply base to generate competition, growth, and a high performing supply base.
- Partner with high performing suppliers who demonstrates near zero defects, on-time delivery, and willingness to self-invest.
- Increase communication and collaboration through Supplier Advisory Council, Supplier Newsletters, and Supplier Development Program.
- Measure performance overall and by supplier and BAE Systems site location.
- Optimize our own processes to ensure supplier belief in a continuous improvement culture contributing to process improvements, cost reductions and supplier performance.
Small Business Liaison Officer
BAE Systems Inc.