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 quality, timely deliveries, and cost-effectiveness. This guide will walk you through how to understand and use the Supplier Scorecard Criteria in iVendNext, helping you optimize your supplier management processes.

1. Introduction to Supplier Scorecard Criteria

The Supplier Scorecard Criteria are the specific metrics used to evaluate supplier performance in iVendNext. These criteria can include factors such as delivery timeliness, item quality, responsiveness, and cost efficiency. By defining and weighting these criteria, businesses can create a comprehensive evaluation system that reflects their priorities and helps them identify high-performing suppliers.

2. Prerequisites for Using Supplier Scorecard Criteria

Before setting up Supplier Scorecard Criteria, ensure that the following prerequisites are met:

• Supplier Creation: The suppliers you want to evaluate must already be created in iVendNext. If not, refer to the Understanding Suppliers in iVendNext guide to create them.

• Transaction History: There should be some transaction history (e.g., purchase orders, deliveries) with the suppliers to evaluate their performance.

3. How to Set Up Supplier Scorecard Criteria

3.1 Accessing the Supplier Scorecard Module

1. Navigate to Supplier Scorecards: Go to Home > Buying > Supplier Scorecard to access the Supplier Scorecard List View.

2. Click on New: Click the "New" button to create a new Supplier Scorecard.

3.2 Defining the Evaluation Criteria

1. Select a Supplier: Choose the supplier you want to evaluate from the dropdown list.

2. Set the Evaluation Period: Define the evaluation period (e.g., weekly, monthly, or yearly) during which the supplier’s performance will be assessed.

3. Add Criteria: Add the criteria you want to evaluate, such as:

• Delivery Timeliness: Measures whether the supplier delivers items on time.

• Item Quality: Tracks the percentage of items accepted versus rejected.

• Responsiveness: Evaluates how quickly the supplier responds to RFQs and other communications.

• Cost Efficiency: Assesses whether the supplier offers competitive pricing.

4. Assign Weights: Assign a weight to each criterion based on its importance. The total weight of all criteria should add up to 100.

5. Save the Scorecard: Once all criteria are defined, click "Save" to create the Supplier Scorecard.

4. Key Features of Supplier Scorecard Criteria

4.1 Customizable Criteria

• Flexibility: You can define custom criteria that reflect your business priorities. For example, if sustainability is important, you can add a criterion for environmental compliance.

• Weighting: Each criterion can be weighted differently, allowing you to prioritize certain aspects of supplier performance over others.

4.2 Pre-Established Variables

iVendNext provides pre-established variables that can be used in the scoring formulas, such as:

• Total Number of Items Received: The total number of items received from the supplier.

• Total Number of Accepted Items: The number of items accepted without issues.

• Total Number of Rejected Items: The number of items rejected due to quality or other issues.

• Total Amount Received: The total monetary value of items received from the supplier.

4.3 Custom Variables

In addition to pre-established variables, you can create custom variables to evaluate specific aspects of supplier performance. For example, you could create a variable to track the number of on-time deliveries.

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.

• Example Formula:

({total_accepted_items} / {total_received_items}) if {total_received_items} > 0 else 1

Info: This formula calculates the percentage of accepted items, but defaults to 1 (100%) if no items were received.

5. Best Practices for Using Supplier Scorecard Criteria

5.1 Define Clear and Relevant Criteria

• Align with Business Goals: Ensure that the criteria you define align with your business goals and priorities.

• Keep it Simple: Avoid overcomplicating the scorecard with too many criteria. Focus on the most important aspects of supplier performance.

5.2 Regularly Review and Update Criteria

• Monitor Performance: Regularly review supplier performance and adjust the criteria as needed to reflect changing business priorities.

• Update Weights: If certain criteria become more or less important over time, update their weights accordingly.

5.3 Communicate with Suppliers

• Share Scorecard Results: Share scorecard results with suppliers to encourage improvement and build stronger relationships.

• Provide Feedback: Offer constructive feedback to suppliers based on their scorecard results.

5.4 Leverage Automation

• Automate Evaluations: Use iVendNext’s automation features to generate scorecard evaluations at regular intervals (e.g., monthly, quarterly).

• Set Up Alerts: Set up alerts for low-performing suppliers to ensure timely follow-up and corrective actions.

6. Conclusion

The Supplier Scorecard Criteria in iVendNext provide a powerful way to evaluate and monitor supplier performance. By defining clear and relevant criteria, assigning appropriate weights, and using custom evaluation formulas, you can create a comprehensive evaluation system that helps you make data-driven decisions about your suppliers. Follow the best practices outlined in this guide to maximize the benefits of Supplier Scorecard Criteria in iVendNext.