RisingERP - Supplier Scorecard

Supplier Scorecard

A Supplier Scorecard in RERP serves as a comprehensive tool for assessing the performance of suppliers, offering valuable insights into aspects such as item quality, delivery efficiency, and responsiveness. This tool aids in making informed purchasing decisions based on historical data accumulated over extended periods.

Accessing Supplier Scorecard: To access the Supplier Scorecard, navigate to: > Home > Procurement > Supplier Scorecard > Supplier Scorecard

1. Prerequisites Before initiating the use of a Supplier Scorecard, it is recommended to set up the following:

1. Supplier

2. Creating a Supplier Scorecard

2.1 Steps to Create:

1. Go to the Supplier Scorecard list and click on New.
2. Select the supplier to be evaluated.
3. Specify the evaluation period, whether weekly, monthly, or yearly.
4. Set up the scoring function (details in the next section).

A unique scorecard is manually created for each supplier, and only one scorecard can be generated for each supplier.

2.2 Key Features

2.2.1 Scoring Setup The Supplier Scorecard comprises predefined evaluation periods, ranging from weekly to yearly. The supplier's performance is assessed during each period, with the current score calculated using a weighting function. The default formula linearly weighs scores over the past 12 evaluation periods, but this formula is customizable.

Supplier Standings: Supplier standings allow quick sorting based on performance. These standings can be customized for each supplier. They are instrumental in restricting suppliers from participating in Request for Quotations (RFQs) or receiving Purchase Orders (POs).

2.2.2 Criteria Setup Suppliers can be evaluated based on various criteria, such as quotation response time, delivered item quality, and delivery punctuality. These criteria are assigned weights to determine the final period score.

To add a new criteria, navigate to Procurement > Supplier Scorecard > Supplier Scorecard Criteria.

Note: Criteria weights for a scorecard should sum up to 100.

2.2.3 Supplier Scorecard Variables The Criteria Formula field determines how each criterion is calculated using pre-established variables. Examples of such variables include the total number of received items, accepted items, rejected items, deliveries, and the total amount received from a supplier.

Variables are pre-set, and additional ones can be added through server-side customizations. Custom checkboxes are available for creating variables for custom fields.

2.2.4 Evaluation Formulas The evaluation formula utilizes pre-established or custom variables to assess an aspect of supplier performance over the scoring period. Formulas can incorporate mathematical functions such as :

1. addition: +
2. subtraction: -
3. multiplication: *
4. division: /
5. min: min(x,y)
6. max: max(x,y)
7. if/else: (x) if (formula) else (y)
8. less than: <
9. greater than: >
10. variables: {variable_name}

It is crucial to ensure that the formula is solvable for all variable values. Checks should be in place to handle cases where values might resolve to zero.

For Example

total_accepted_items} / {total_received_items}

This example would resolve to 0 / 0 in periods where there are no received items, and therefore should have a check to protect in this case:

({total_accepted_items} / {total_received_items}) if {total_received_items} &gt; 0else 1.

2.2.5 Evaluating the Supplier The evaluation process is initiated by clicking the "Generate Missing Scorecard Periods" button. The supplier's current score is displayed, accompanied by a visual representation of their performance over time. Any relevant actions, warnings, or restrictions regarding RFQs and POs are also highlighted.

This comprehensive Supplier Scorecard system in RERP facilitates a thorough analysis of supplier performance, enabling strategic decision-making in the procurement process.