SAP MM interview questions

What is SAP Vendor Evaluation System and how Integrated?

The vendor Evaluation component has been completely integrated into SAP MM Purchasing. The information such as delivery dates, prices, and quantities can be taken from purchase orders. The SAP Vendor Evaluation uses the various data from Quality Management, and this will be shows the result of incoming inspections or other way the quality audits of the system. It also accesses basic data in Materials Management, which as goods receipt data from Inventory Management, and data from the Logistics Information System (LIS).

What is Vendor Evaluation?
The Vendor Evaluation in sap System which 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 facilitates 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 plant by 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:

1), Price 2), Quality 3),Delivery 4), General service/support

These four main criteria serve as a basis for the evaluation of vendors from whom you procure materials.

1), External service

This main criterion serves as a basis for the evaluation of vendors you employ as external service providers.

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 subcriteria. The standard system provides you with certain subcriteria which suffice as a basis for evaluation, but you can also define your own additional subcriteria.
sap mm vendor evaluation System
The scores for the subcriteria are calculated in three different ways.

Automatic, The 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 subcriterion per vendor and you can decide yourself which of these methods you want to use.

Analyses
The results of sap 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.

Also See: The difference between Logistics, Inventory & Supply chain Management

Online Training Tutorials

  • Material Requirements Planning MRPMaterial Requirements Planning (MRP) in SAP MMThe basic role of material requirements planning (MRP) is to monitor stocks and, in particular, to automatically generate order proposals for purchasing and production (planned orders, […]
  • Consumption Based Planning sap mmWhat is Consumption based Planning in SAP MM?The below sap mm tutorials (Material Management) will help to know more on the consumption based planning in sap mm. The central role of material requirements planning is to monitor stocks […]
  • Scheduling agreement in SAP MMWhat is Scheduling agreement in SAP MM?The scheduling agreement has similarities with a quantity contract: it states the target quantity of a material to be ordered from a vendor over a period of time, and the price. For each […]
  • outline agreement in SAPWhat is outline agreements in SAP?This post explains general background information on the "outline agreements" (which, outside the SAP System, may also be referred to as blanket, master, framework or umbrella agreements) […]
  • request for quotation (RFQ)What is request for quotation (RFQ) in sap?The request for quotation (RFQ) is an invitation to a vendor to indicate his terms and conditions (in particular, his price) for the supply of a material or the provision of a service by […]
  • Material Ledger Multiple CurrencyHow to do Material Ledger Multiple Currency?Material Ledger Multiple Currency: The system stores valuation data for a material in its material ledger in up to three currencies. You specify in which currencies the system stores this […]
  • Invoice VerificationWhat is Invoice Verification in the SAP System?The SAP system is made up of several components linked together so that different departments within a company can cooperate with one another. The Invoice Verification component is part of […]
  • Purchasing Documents per VendorHow to View Existing Purchasing Documents per Vendor?This procedure outlines the process of displaying Purchasing documents that have been created for a vendor.  It should be noted that in the initial screen of the transaction, that the user […]