LitBuy: How to Track Seller Reliability Using the LitBuy Spreadsheet
In global sourcing and B2B purchasing, seller reliabilityLitBuy Spreadsheet
Why Traditional Vendor Tracking Fails
Relying on memory, scattered emails, or informal notes is a recipe for inefficiency. Without a centralized system:
- Good and bad experiences are forgotten over time.
- It's impossible to spot long-term performance trends.
- Decision-making becomes subjective rather than fact-based.
The LitBuy method transforms this chaos into an objective, calculABLE process.
Building Your LitBuy Reliability Tracker
The core of the LitBuy system is a simple spreadsheet with the following key columns. This structure allows you to log and calculate performance metrics methodically.
| Column | Description | Example Entry |
|---|---|---|
| Vendor Name | The name of the supplier or manufacturer. | Global Parts Co. |
| Order Date | Date the Purchase Order was issued. | 15-Oct-2023 |
| Item / PO# | A brief description of the goods or the Purchase Order number for reference. | Widget A / PO-7842 |
| QC Result | Record "Pass", "Fail", or a numerical score (e.g., 1-10). | Pass |
| Delivery Date | The actual date the shipment was received. | 30-Nov-2023 |
| Agreed Delivery Date | The originally promised delivery date. | 28-Nov-2023 |
| On Time? (Y/N) | A simple "Y" if the Delivery Date was on or before the Agreed Date, otherwise "N". | N |
| Notes | Space for specific details about defects, communication issues, packaging, etc. | Good communication, but 2 units were defective. |
How to Calculate the Key Metrics
With data logged, you can use simple formulas to generate your two most important Reliability Scores.
1. QC Accuracy Rate
This measures the percentage of orders that passed your quality control check.
Formula:(Number of "Pass" Entries) / (Total Number of PO Entries)
Example:80%.
2. Delivery Punctuality Rate
This measures the percentage of orders delivered on or before the agreed date.
Formula:(Number of "Y" in On Time? column) / (Total Number of PO Entries)
Example:70%.
Analyzing the Data for Smarter Sourcing
Don't just collect numbers—use them. Combine the two scores to categorize your vendors effectively:
- Star Performers (High QC + High Punctuality):
- Quality-Risk Vendors (Low QC + High Punctuality):
- Logistics-Risk Vendors (High QC + Low Punctuality):
- High-Risk Vendors (Low QC + Low Punctuality):
- Quality-Risk Vendors (Low QC + High Punctuality):
Best Practices for Implementation
- Be Consistent:
- Review Quarterly:
- Share with Your Team:
- Use Charts:
- Review Quarterly:
Conclusion
The LitBuy Spreadsheet is more than just a log; it's a strategic tool for de-risking your supply chain. By objectively tracking QC accuracy and delivery punctuality, you empower your business to make smarter, more profitable sourcing decisions. Start tracking today, and turn vendor management from a guessing game into a science.