The Vendor Evaluation component has been completely integrated into MM Purchasing.
Information such as delivery dates, prices, and quantities can be taken from purchase
orders. Vendor Evaluation also uses data from Quality Management, such as the results
of incoming inspections or quality audits. It also accesses basic data in Materials
Management, such as goods receipt data from Inventory Management, and data from
the Logistics Information System
What is Vendor Evaluation?
The Vendor Evaluation System supports you in the optimization of your procurement
processes in the case of both materials and services.
Procurement of Materials
The system helps you select sources of supply and facilitate the continual monitoring of
existing supply relationships. It provides you with accurate information on prices, and
terms of payment and delivery. By evaluating vendors, you can improve your
enterprise's competitiveness. You can quickly determine and resolve any procurement
problems that may arise on the basis of detailed information and in collaboration with the
relevant vendors.
Procurement of Services
You can check the reliability of the vendors from which you procure services on a plantby-
plant basis. You can determine whether the vendors perform the services within the
specified timeframes and appraise the quality of the work carried out.
Scores and Criteria
The SAP Standard System offers you a scoring range from 1 to 100 points, which is
used to measure the performance of your vendors on the basis of five main criteria. You
can determine and compare the performance of your vendors by reference to their
overall scores. The main criteria available in the standard system are:
·Price
·Quality
·Delivery
·General service/support
These four main criteria serve as a basis for the evaluation of vendors from whom you
procure materials.
You can also define other or further main criteria, as required. You can assign different
weights to the individual criteria. The vendor's overall score is computed taking into
account the weighted scores awarded for each of the main criteria. The Vendor
Evaluation System ensures that evaluation of vendors is objective, since all vendors are
assessed according to uniform criteria and the scores are computed automatically. In
this way, subjective impressions and judgments can be largely avoided. To create a
detailed evaluation, each main criterion can be divided into several sub criteria. The
standard system provides you with certain sub criteria, which suffice as a basis for
evaluation, but you can also define your own additional sub criteria.
The scores for the sub criteria are calculated in three different ways.
Automatic
Scores are calculated by the system on the basis of existing data.
Semi-automatic
You enter individual scores for important materials, or for the quality and
timeliness of a service performed yourself. The system then calculates the
higher-level score from these.
Manual
You enter a blanket score for a sub criterion per vendor.
Analyses
The results of vendor evaluation are displayed in the form of analyses. For example, you
can generate ranking lists of the best vendors according to overall score or ranking lists
for specific materials. Changes to evaluations are recorded in logs, and you have the
option of printing out evaluation sheets.
Organizational Level for Vendor Evaluation
The organizational level for Vendor Evaluation is the purchasing organization: Each
purchasing organization evaluates the vendors that have been assigned to it. The
system does not support a comparison of Vendor Evaluations at the higher company
code level.
Vendor Evaluation uses the following master data:
·
Vendor master record
·
Material master record
·
This section describes the most important elements of Vendor Evaluation:
Overall Score
Main Criteria
Sub criteria
Scoring Range
Weighting of Scores
Purchasing info record
Overall Score
The overall score represents the complete evaluation of a vendor. It is a combination of
the scores the vendor has achieved for all the main criteria. You can compare different
vendors on the basis of their overall scores without generating a detailed analysis of
their evaluations.
Main criteria
The main criteria form the basis for assessing the performance of a vendor. The system
calculates the overall score for a vendor from the main criteria scores. You can evaluate
vendors according to several main criteria, which you consider important. The scores for
the main criteria are a more accurate representation of the performance of a vendor than
the overall score.
Subcriteria
Subcriteria are the smallest units to which scores can be assigned in Vendor Evaluation.
The system calculates a score for the higher-level main criterion based on the scores a
vendor receives for the various subcriteria. There are three types of subcriteria:
·
Manual
·
Semi-automatic
·
They are named after the different methods of scoring. The individual scoring methods
fulfill different purposes and involve different kinds of maintenance.
Scoring Range
To compare the performance of one vendor with another, it is necessary to establish a
range (or scale) of possible scores. You can define your own scoring range from the
worst- to the best-possible achievable score. The examples in this documentation are
based on a scoring range of 1 to 100 points. This scale provides you with a good
overview and also permits quite a finely differentiated rating of individual vendors.
The scoring range is defined when the system is configured.
Weighting of Scores
The scores a vendor is awarded for main criteria can be weighted differently to reflect
differences in the significance of the criteria.
Weighting Factor
By using weighting factors, you can increase or reduce the importance of certain criteria
when a score is calculated at the next highest level.
Suppose a vendor receives 80 points for the criterion Price and 80 points for the criterion
Service. Since the price of the material is more important to you than the service the
vendor provides, you assign the criterion Price a weighting factor of 3 and the criterion
Service a factor of 1. The 80 points for Price are then worth three times more than the 80
points for Service when the overall score is calculated.
Weighting Keys
A weighting key is an identifier under which the weighting factors for a number of main
criteria can be grouped together and saved. If you know that you will want to carry out an
evaluation repeatedly with certain main criteria and certain weighting factors, you can
save this combination under a weighting key. When you carry out the next vendor
evaluation, just enter the relevant weighting key instead of entering a weighting factor for
each individual criterion. The system then automatically sets all the weighting factors.
Evaluating Vendors
The evaluation of vendors is subject to certain preconditions. Before you begin, you
must consider the following:
·
Have you maintained the system settings?
·
Do you have the required authorizations?
·
Which vendor do you want to evaluate? (vendor key)
·
organization key)?
Which purchasing organization is to evaluate the vendor (purchasing
·
Is this the first time the vendor has been evaluated?
·
No comments:
Post a Comment