Supplier Scorecard
Overview
In today’s competitive business environment, evaluating supplier performance is crucial for maintaining quality, ensuring timely deliveries, and optimizing costs. iVendNext offers a powerful tool called the Supplier Scorecard to help businesses assess and monitor supplier performance over time. This guide will walk you through how to create, manage, and use Supplier Scorecards in iVendNext to make data-driven decisions and improve your procurement processes.
1. Introduction to Supplier Scorecards
A Supplier Scorecard is an evaluation tool that allows businesses to track and assess the performance of their suppliers based on predefined criteria. In iVendNext, Supplier Scorecards can be customized to evaluate factors such as delivery timeliness, item quality, responsiveness, and more. By using scorecards, businesses can identify high-performing suppliers, address issues with underperforming ones, and make informed decisions about future procurement.
2. Prerequisites for Creating a Supplier Scorecard
Before creating a Supplier Scorecard, ensure that the following prerequisites are met:
Supplier Creation: The supplier must already be created in iVendNext. If not, refer to the Understanding Suppliers in iVendNext guide to create one.
Transactions History: To evaluate supplier performance, there should be some transaction history (e.g., purchase orders, deliveries, etc.) with the supplier.
3. How to Create a Supplier Scorecard
3.1 Accessing the Supplier Scorecard Module
Navigate to Supplier Scorecards: Go to Home > Buying > Supplier Scorecard to access the Supplier Scorecard List View.
Click on New: Click the "New" button to create a new Supplier Scorecard.
3.2 Setting Up the Scorecard
Select a Supplier: Choose the supplier you want to evaluate from the dropdown list.
Set the Evaluation Period: Define the evaluation period (e.g., weekly, monthly, or yearly) during which the supplier’s performance will be assessed.
Define Scoring Criteria: Set up the criteria for evaluation, such as delivery timeliness, item quality, and responsiveness. Each criterion should have a weight, and the total weight should add up to 100.
Customize the Scoring Formula: Use pre-established variables (e.g., total number of items received, total number of rejected items) to create a formula for each criterion. You can also add custom variables if needed.
Save the Scorecard: Once all details are entered, click "Save" to create the Supplier Scorecard.
4. Key Features of Supplier Scorecards
4.1 Scoring Setup
The Supplier Scorecard allows you to set up a scoring function that calculates the supplier’s performance over the evaluation period. The default formula is linearly weighted over the previous 12 scoring periods, but this can be customized to fit your business needs.
Evaluation Period: You can set the evaluation period to weekly, monthly, or yearly.
Weighting Function: The scorecard uses a weighting function to calculate the overall score based on the performance in each evaluation period.
4.2 Criteria Setup
You can evaluate suppliers on multiple criteria, such as:
Quotation Response Time: How quickly the supplier responds to requests for quotations.
Delivery Timeliness: Whether the supplier delivers items on time.
Item Quality: The percentage of items accepted versus rejected.
4.3 Supplier Standings
The Supplier Standings feature allows you to quickly sort suppliers based on their performance. You can customize the standings to reflect your business priorities, such as prioritizing suppliers with the highest delivery timeliness or item quality.
Warnings and Restrictions: Based on the supplier’s standing, you can set up warnings or restrictions.
For example, you can prevent a low-performing supplier from being included in future Request for Quotations (RFQs) or Purchase Orders (POs).
4.4 Evaluation Formulas
iVendNext allows you to create custom evaluation formulas using mathematical functions such as addition, subtraction, multiplication, and division. You can also use conditional statements (e.g., if/else) to handle edge cases, such as when no items are received during an evaluation period.
Example Formula:
({total_accepted_items} / {total_received_items}) if {total_received_items} > 0 else 1
5. Evaluating Supplier Performance
5.1 Generating Missing Scorecard Periods
To evaluate a supplier’s performance, click the "Generate Missing Scorecard Periods" button. This will calculate the supplier’s score for each evaluation period based on the criteria and formulas you’ve defined.
5.2 Visualizing Performance
iVendNext provides a visual graphic that shows the supplier’s performance over time. This makes it easy to identify trends, such as improving or declining performance.
5.3 Taking Action Based on Scorecard Results
Based on the scorecard results, you can take various actions, such as:
Issuing Warnings: Notify suppliers about their performance issues.
Restricting Transactions: Prevent low-performing suppliers from being included in RFQs or POs.
Rewarding High Performers: Prioritize high-performing suppliers for future business.
6. Best Practices for Using Supplier Scorecards
Regularly Update Scorecards: Ensure that scorecards are updated regularly to reflect the latest supplier performance data.
Customize Criteria: Tailor the evaluation criteria to match your business priorities and procurement goals.
Communicate with Suppliers: Share scorecard results with suppliers to encourage improvement and build stronger relationships.
Use Visualizations: Leverage the visual graphics provided by iVendNext to quickly identify trends and make informed decisions.
7. Conclusion
The Supplier Scorecard feature in iVendNext is a powerful tool for evaluating and monitoring supplier performance. By setting up customized criteria, scoring formulas, and evaluation periods, businesses can make data-driven decisions that improve procurement efficiency and supplier relationships. Whether you’re tracking delivery timeliness, item quality, or responsiveness, Supplier Scorecards provide the insights you need to optimize your supply chain.
Related Articles
Understanding and Using the Supplier Scorecard Criteria
Overview The Supplier Scorecard in iVendNext is a powerful tool for evaluating and monitoring supplier performance. By setting up specific criteria and scoring mechanisms, businesses can make data-driven decisions about their suppliers, ensuring ...Creating and Using Supplier Scorecards
Introduction Supplier performance is a critical factor in the success of any procurement process. To help organizations evaluate and manage their suppliers effectively, iVendNext offers the Supplier Scorecard feature. A Supplier Scorecard is an ...Supplier Management
Introduction Effective supplier management is a cornerstone of successful procurement and supply chain operations. In iVendNext, the Supplier Management module is designed to help businesses efficiently manage their supplier relationships, from ...Effective Supplier Management: Tips and Tricks
Overview Effective supplier management is crucial for maintaining a smooth procurement process, ensuring timely deliveries, and building strong supplier relationships. iVendNext offers a range of tools and features to help businesses manage their ...Supplier Quotation Management
Introduction In the procurement process, obtaining and managing Supplier Quotations is a critical step. A Supplier Quotation is a formal document provided by a potential supplier, detailing the cost of goods or services they can provide. It includes ...