Vendor evaluation is the process of analyzing and assessing the performance of external vendors based on criteria like price, quality, delivery, and service. The SAP system offers scoring from 1 to 100 for each criterion, with weighted totals determining overall vendor rankings. The process involves defining evaluation criteria and sub-criteria, weights, and is maintained at the purchasing organization level where transactions like ME61 are used to generate evaluation sheets and ranking lists for vendors.
Vendor evaluation is the process of analyzing and assessing the performance of external vendors based on criteria like price, quality, delivery, and service. The SAP system offers scoring from 1 to 100 for each criterion, with weighted totals determining overall vendor rankings. The process involves defining evaluation criteria and sub-criteria, weights, and is maintained at the purchasing organization level where transactions like ME61 are used to generate evaluation sheets and ranking lists for vendors.
Vendor evaluation is the process of analyzing and assessing the performance of external vendors based on criteria like price, quality, delivery, and service. The SAP system offers scoring from 1 to 100 for each criterion, with weighted totals determining overall vendor rankings. The process involves defining evaluation criteria and sub-criteria, weights, and is maintained at the purchasing organization level where transactions like ME61 are used to generate evaluation sheets and ranking lists for vendors.
Vendor evaluation is the process of analyzing and assessing the performance of external vendors based on criteria like price, quality, delivery, and service. The SAP system offers scoring from 1 to 100 for each criterion, with weighted totals determining overall vendor rankings. The process involves defining evaluation criteria and sub-criteria, weights, and is maintained at the purchasing organization level where transactions like ME61 are used to generate evaluation sheets and ranking lists for vendors.
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Vendor Evaluation Process
Vendor evaluation is the process of analysing and assessing the performance of the vendors of the external vendor. In this processes vendors are allowed to score in different criteria and the highest scored vendor is selected for procurement.
In our company, we have checking of performance of vendors based on different
criteria for giving ranking and that is call Vendor Evaluation.
We have to 4 Criteria's:
1. Price 2. Quality 3. Delivery 4. Service
The standard SAP 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 evaluating vendors from whom you procure materials. • External service provision This main criterion serves as a basis for evaluating those 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
Vendor Evaluation is set and maintained at the purchasing-organization level, where
procurement and purchasing responsibility resides.
Procurement Price. Vendors offering the most competitive price score high.
On-time delivery. Meeting on-time delivery schedule or within
predefined delivery tolerances ensure high scores.
Shipping instructions. Adhering to the company's predefined shipping
instructions gives such vendors higher scores. Quality Quality score from goods receipt inspection. The quality inspection process entails recording results and defects of materials received from vendors, followed by making the decision to use the material or not. This quality inspector's decision is known as usage decision (UD), which consists of not only a UD code, but also has an associated predefined quality score. For example, a UD code "A" represents "Accepted," with a quality score of 100, while a UD code "A1" represents partially accepted, and has a quality score of 70. A lower-quality score leads to a more unfavorable assessment of a vendor.
Quality notifications as complaints. The number of vendor complaints
received in the form of quality notifications reflects the rejection level of vendor-supplied material.
Customizing Vendor Evaluation (II)
Define Weighting Keys
o define the weighting keys for the main criteria of vendor evaluation Define Criteria o define the criteria by which the system computes scores for vendors o specify whether the scores for the sub-criteria are computed manually, semi-automatically, or automatically o can activate user exit: customer's own program to determine score
Criteria Sub-Criteria Price, 1. Price level,2.Price List Quality, 1.Goods receipt,2.Quality Audit Delivery 1.On time deliver,2. Confirmation,Shipment Instruction Service 1.Invoice, 2. Flexibility
3. SPRO > MM > purchasing > Supplier Evaluation > Define Scope List. 4. SPRO > MM > purchasing > Supplier Evaluation > Maintain Purchasing Organization Data 5. Use T-code – ME61 for Vendor Evaluation (Do it for 2-3 Vendors)
To generate a report, use t–code ME6H
Evaluation sheet, use t– code ME6F For all vendors
Ranking list of vendors t-code ME65
Vendor Evaluation Transaction Code
ME61 (Maintain) ME62 (Display) ME63 (Automatic New Evaluation) ME64 (Compare New Evaluation) ME65 (Evaluation Lists) ME6A (Changes to Vendor Evaluation) ME6B (Display Vendor Evaln. for Material) ME6C (Vendors Without Evaluation) ME6D (Vendors Not Evaluated Since...) ME6E (Evaluation Records Without Weighting) ME6F (Print) ME6G (Vendor Evaluation in the Background) ME6H (Standard Analysis: Vendor Evaluation) ME6Z (Transport Vendor Evaluation Tables)
