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.
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.
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
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