Working Relations Index®
The weights applied to the variables and components and the formula to calculate the WRI® metrics are the intellectual property of PPI and is not ever shared with any individuals outside of PPI.
The WRI® model was created by Professor John Henke in 2002, ten years after he began conducting in-depth confidential supplier surveys for various North American OEMs, which evolved into the Annual Automotive Industry™ Study. The results of these studies were captured in a comprehensive PPI supplier database. Using this data, Professor Henke, through rigorous statistical analysis and modeling, discovered and verified that the behavior variables of the WRI® model (Figure 1) were an accurate quantitative measure of a company’s working relations with its suppliers.
Based on a 500-point scale, the WRI® model enables companies to assess its supplier working relations effectiveness and compare performance across purchasing areas, divisions, sites, industry peers, and other dimensions identified by the company (Figures 2 and 3).
The WRI® methodology has been used by many high-performing companies to improve their working relations with suppliers and thus accrue the many tangible benefits associated with trusting, collaborative working relations.