MM Vendor Evaluation 

Uses

The Vendor Evaluation component supports you in optimizing your procurement processes in the case of both materials and services.

Integration

In the SAP System, Vendor Evaluation is completely integrated into the MM Purchasing component within Materials Management. This means that information such as delivery dates, prices, and quantities can be taken from purchase orders.

Vendor Evaluation also uses data from the Quality Management component, such as the results of incoming inspections or quality audits.

Vendor Evaluation accesses basic Materials Management data, Inventory Management data (such as goods receipts), and data from the Logistics Information System (LIS). The LIS data is stored in the information structure S013.

Customizing

Before you can work with the Vendor Evaluation component, the system settings must be maintained.

Scope of Functions

Procurement of Materials

The Vendor Evaluation component 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.

On the basis of detailed information, and in collaboration with the relevant vendors, you can quickly identify and resolve any procurement problems that may crop up from time to time.

Procurement of Services

You can check the reliability of the vendors from whom 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 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:

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

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.

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 eliminated.

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. You can also define your own additional subcriteria.

The scores for the subcriteria are calculated in different ways.

Scoring Methods

Scoring method

Description

Fully automatically

Scores are calculated by the system on the basis of existing data.

Semi-automatically

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.

Manually

You enter a blanket score for a subcriterion per vendor.

You can decide yourself which of these methods to use.

Analyses

The results of vendor evaluation are displayed in the form of analyses. For example, you can generate ranking lists of the best vendors according to their overall scores or ranking lists for specific materials.

Changes to evaluations are recorded in logs, and you have the option of printing out evaluation sheets.

 

See also:

MM Purchasing

MM External Services Management