Sun distills information from those three measures, paying close attention to the customer's comments. If a particular issue arises that requires immediate attention, Sun contacts USCO to resolve the problem. In addition to these measures, Sun has a contract with USCO that defines its performance expectations. Performance measures are summarized on a quarterly basis and we use a scorecard process by which we communicate our perception of performance. Sun gives USCO a scorecard each quarter.
Fiscal management examines the third party's costs in comparison with other suppliers'.
Quality looks at the quality of the service USCO is providing. Availability examines the 3PL's record on inventory accuracy and order fill rates. The fourth criterion, strategic and technical development, measures USCO's ability to perform capacity and system management. Criteria Definition COST Service Costs Supplier meets target price of service. Cost Reductions Supplier actively works to reduce product price quarter over quarter.