This section describes how the system calculates the score for the automatic subcriterion "On-Time Delivery Performance".

The system uses the statistics-relevant delivery date in the purchase order and the goods receipt date to calculate date variances.

You use the statistics-relevant delivery date, for example, if you know that the vendor will not deliver the material as scheduled on September 15 but on September 30. Enter the delivery date as September 30, but enter the statistics-relevant delivery date as September 15.

In calculating the score for on-time delivery performance, the system will then not use the actual delivery date, but the statistics-relevant delivery date. This has a negative effect on the score for this goods receipt.
However, materials planning and control uses the realistic delivery date (September 30) which the vendor will actually adhere to.

The system considers only goods receipts against purchase orders and scheduling agreements into stores and the release of GR blocked stock into stores. In the standard system, these are the movement types 101 and 105.

If you do not want a vendor to receive a very good score if he delivered the goods on time, but did not deliver the required quantity, you can maintain a minimum delivery percentage in Customizing.

Assume you set the Min. del. perc. parameter to 60% and the vendor delivers the goods on time, but only 55% of the ordered quantity. Although the goods receipt is punctual, it is not included in the calculation of the vendor’s score for on-time delivery performance. So that the non-scoring of the on-time delivery performance criterion in this case does not bring an unfair advantage in comparison with a poor score, the vendor is awarded a low score for quantity reliability. On-time delivery performance is thus always to be seen in conjunction with quantity reliability.

To rate delivery date variances in days, maintain the Std.del.time var. parameter.

If you assign a lower standard value, this means that relatively low date variances produce high percentage variances. If you set a higher standard value, this results in a relatively low percentage variance:

If you do not maintain this parameter, the system calculates the delivery time variance via the firm zone in the case of scheduling agreements, and via the order date and the statistics-relevant delivery date in the case of purchase orders.

If you do not wish the same values to be applied for all materials (Minimum delivery percentage and Standardizing value for delivery time variance parameters), you can set the Minimum delivery quantity/standardizing value for delivery time variance from material indicator in Customizing. In such case, the values from the relevant material master record (purchasing value key) are used.

1. At the time of a goods receipt against a purchase order, the system checks whether the delivery was on time or late:

GR date - delivery date = date variance

2. If the delivery was on time, the system checks whether a minimum delivery quantity is to be taken into account.

It checks the Minimum delivery quantity/standardizing value for delivery time variance from material indicator.

– If the indicator has been selected, it checks whether a value has been maintained in the material master record.

If a value exists, it is used. If no value exists, the value from the Minimum delivery percentage field is used. If there no such value in this case either, goods receipts of fractions of the order quantity are included in the calculation of the score.

– If the indicator has not been selected, the value from the Minimum delivery percentage field is used. If no value exists, goods receipts of fractions of the order quantity are included in the calculation of the score.

If the minimum delivery quantity is not reached, the system does not determine a score for the goods receipt.

If the minimum delivery quantity is reached and the delivery date adhered to, the variance is zero and the system awards the highest points score for the relevant goods receipt.

3. If the delivery is not on time, the system calculates the date variance in days and converts it into a percentage variance.

In the process, the system searches for the standardizing value as follows:

It checks the Minimum delivery quantity/standardizing value for delivery time variance from material indicator.

– If the indicator has been selected, it checks whether a value has been maintained in the material master record.

If a value exists, it is used. If not, the value from the Standardizing value for delivery time variance field is used. If there is no such value in this case either, one of the following values is used:

– in the case of goods receipts against scheduling agreement releases: the firm zone

– in the case of goods receipts against purchase orders: the difference between the statistical delivery date and the order date

– If the indicator has not been selected, the value from the Standardizing value for delivery time variance field is used. If there is no such value, one of the following values is used

– in the case of goods receipts against scheduling agreement releases: the firm zone

– in the case of goods receipts against purchase orders: the difference between the statistical delivery date and the order date

4. The system then awards the score you defined in Customizing for this percentage variance.
5. The new score is then included in the vendor's previous score for the subcriterion. To calculate the new score for the subcriterion from the already existing composite score and this new individual score, the system applies the smoothing factor Date variance defined in Customizing.
6. When you run a new evaluation, the system calculates the average of the individual scores for all materials. The result is the vendor's score for "On-Time Delivery Performance".