Vendor Evaluation / Rating

All SAP Gurus,
I want to evaluate number of vendors (but not all) at a time, how it can be done?
Regards,

Hi Ranjan,
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.
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.
We can determine and compare the performance of your vendors by reference to their overall
scores.
The main criteria available in the standard system are:
Price
Quality
Delivery
General service/support
These four main criteria serve as a basis for evaluating vendors from whom you procure materials.
External service provision
This main criterion serves as a basis for evaluating those vendors you employ as external service providers.
The first thread in MM contains a Pdf on Vendor Evaluation which gives a complete infromation
Hope this basic infromation helps you out
In case of any further clarification do get back
Please reward in case if you find this information is found useful
Thanks & regards
Pavan

Similar Messages

Delivery rating in vendor evaluation

Can I know on what logic system calculates the delivery rating, for schedule agreement which has more than one schedule lines.
Regards,
M.M

Dear Magesh,
This is for On time delivery:
===========================================================
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
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.
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
The system then awards the score you defined in Customizing for this percentage variance.
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.
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".
If a goods receipt covers several schedule lines, MM Vendor Evaluation performs this calculation for each schedule line.
This results in more than one score for the single goods receipt. Each of these scores is multiplied by the quantity delivered against the relevant schedule line and is thus weighted by quantity.
The sum of the weighted points scores is divided by the total goods receipt quantity. The result is the score for this one goods receipt.
The score for the goods receipt is smoothed and included in the existing score for on-time delivery performance for the vendor
Adherence to Conf. Date :
===========================================================
1. When a goods receipt is posted for an order item, the system checks whether open inbound deliveries exist for the order item, i.e. inbound deliveries for which no goods receipts have yet been recorded.
If open inbound deliveries exist, the system checks whether the date previously notified by the vendor has been adhered to or whether the goods receipt date differs from the date thus confirmed:
GR date - date confirmed by vendor in shipping notification = date variance
2. If the delivery was on time, the system checks whether a minimum delivery quantity has been defined in Customizing.
a. If you have not set a minimum delivery quantity, goods receipts representing partial deliveries will also be included in the calculation of the score.
b. If the minimum delivery quantity is not reached, the system does not determine a score for the goods receipt.
c. If the minimum delivery quantity is reached and the delivery is on time, the variance is zero. This means that the system awards the maximum score for the goods receipt.
3. If the delivery date is not in accordance with the notified one, the system calculates the date variance in days and converts it into a percentage variance.
4. The system then awards the score you defined in Customizing for this percentage variance.
5. The new score is then merged with 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 On-time delivery performance/Timeliness of service provision (defined in Customizing for Vendor Evaluation under Purchasing organization data for Vendor Evaluation).
6. When you run a new evaluation, the system calculates the average of the individual scores for all materials. The result is the vendors score for adherence to the confirmation date.
If a goods receipt covers several schedule lines, MM Vendor Evaluation performs this calculation for each schedule line.
This results in more than one score for the single goods receipt. Each of these scores is multiplied by the quantity delivered against the relevant schedule line and is thus weighted by quantity.
The sum of the weighted points scores is divided by the total goods receipt quantity. The result is the score for this one goods receipt.
The score for the goods receipt is smoothed and merged with the existing score for adherence to the confirmation date for the vendor.
Regards,
w1n

Reg. Vendor evaluation,Vendor rating

Dear All
How to Vendor evaluation maintain,Vendor rating by turn over/Reliability/Quality.
Thanks
S.K.Rajakumar

Check this Link
http://www.sap-img.com/mm009.htm

Vendor evaluation delivery rating

hi,
Presently working on vendor evaluation.
i did config. but not getting proper result
pl note the scenario; ifany body can help.
a)On time delivery rating (ODR):- ODR is calculated to determine how precisely a vendor has adhered to the specified delivery dates.
Scoring Procedure:-
ODR =1 if Goods receipt dateu2264 Specified delivery date
ODR =0 if Goods receipt date>Specified delivery date
b)     Quantity Rating (QNR):- QNR is calculated to determine whether a vendor has delivered the quantity specified in the purchase order.
Scoring Procedure:-
Quantity Rating Score (QNRS) = _Qty Received/Total qty to be delivered    *100
QNRS                      QNR
QNRSu2265100     1
75u2264 QNRS <100     0.75
50u2264 QNRS <75     0.50
20u2264 QNRS <50     0.20
0u2264 QNRS <20     0
mainly problem is in spro-purchasingvendor evaluationdefine purchasing org data for vendor evaluation--pointscore
if anybody can help
regards

Hi,
Computing scores for DELIVERY, minimum delivery percentage and the standardizing value for delivery time variance are taken from the material master record(In purchasing value key) or from the fields : Minimum delivery qty. in percentage and Standard del. time variance fields in Txn: OMGL.
1. You maintain minimum delivery percentage, if you do not want a vendor to receive a very good scoreif delivered goods on time, but not the exact qty.
2. You maintain Standard del. time variance, to reate delivery dates variances in days.
*% variance= (Difference between Statistical delivery date & GR Date)/Standard del. time variance 100.
Hope this helps!
Regards,
Shilpa

Vendor evaluation at material level

Hi friends,
I have one requirement from client. A vendor supplies many materials. My client want to get report of vendor rating of the vendor for each material and material groupwise.
Can this objective can be achieved?
Please suggest.
Regards

Hi,
When you run Vendor Evaluation (for all criteria), sysytem keeps log of all material level points the Vendor has achieved. You can view the same in transaction ME64.
Regards,
Prashant

REGARDING VENDOR QUALITY RATING

Hi All
My client wants vendor quality rating
for this i maintend quality score in clint data maintened score procedure and assing it to inspection type
define the formula for quality rating in functional modul for Q score procedure
is this suficient or i m missing some thing pls tell me
regards
Sachin

HI
endor Evaluation for Purchasing
Define the weighting keys in SM30 - V_T147J.
Weighting keys 01 and 02 are defined in the standard system. You combine the following
weighting shares for the standard main criteria:
Main criterion     Key 01 Key 02
Price                   1      5
Quality                 1      5
Delivery                1      2
Gen. service/support    1      1
Ext. service provision 1      2
Define the criteria in SM30 - V_T147G - Double click on the line items
In this step, you define the criteria by which the system computes scores for vendors and
specify whether the scores for the subcriteria are computed manually, semi-automatically, or
automatically.
You can also store your own methods of computation for the scores for subcriteria in the
form of user exits. The enhancement MM06L001 is available for this purpose.
Define the scope of list in SM30 - V_T147M - Double click on the line items
Define Purchasing Organization data for vendor evaluations in transaction OMGL.
An example :-
How the system calculates the score for the automatic subcriteria
"On-Time Delivery Performance"?
The system uses the statistics-relevant delivery date in the purchase order
(Items -> Delivery Schedule) 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.
Minimum Delivery Percentage - OMGL in the On-time delivery section
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 vendoru2019s 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.
Standardizing Delivery Date Variance - OMGL in the On-time delivery section
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:
The Std.del.time var. parameter has the value 20. The goods receipt took place on Nov. 27;
the statistical delivery date was Nov. 15. There is thus a difference of 12 days.
The system calculates the percentage variance as follows:
12 / 20 x 100 = 60
If the Std.del.time var. parameter had the value 60, the variance would be 20%
(12 / 60 x 100 = 20).
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.
With regrds
Yashodhan

Additional sub criteria for Vendor Evaluation tab in SES (ML81N).

Hi,
I like to add two additional sub criteria for Vendor Evaluation tab in SES (ML81N). Based on which vendor evaluation will be calculated.
1. Safety/Envt Upkeep
2. Morale
These two are added in SPRO->Purchasing->Vendor Evaluation ->Define Criteria. But not displayed in ML81N->Vendor Evaluation tab.
Existing criteria. 1) Quality of Service and 2) Service Timeliness are already available.
Thanks in advance.
Chetan Shah

Hello Chetan,
have you checked note 79166 "MM-SRV Hint: Vendor evaluation for service"?
Define an evaluation criterion for services in Customizing of the vendor evaluation to be able to use the vendor evaluation also for the services management.The main criterion must contain the determination methods 'C' (determination from the quality valuation of the service) and 'D' (determination from the timeliness rating of the service) in the sub-criteria.
Kind Regards
TomT

Vendor Evaluation implementation

Dear Buddies
This has reference to the subject matter, we needs to implement the Vendor Evaluation in SAP, being an Audit Requirement.
We needs to fix the following parameters for the same:
"QUOTE"
CRITERIA FOR VENDOR RATING
                    W1xQr + W2xDr + W3xSr + W4xAr
Vendor Rating (VRML) =     -
                              100
     Where      Rating          Weightage          To be rated by
     Quality (Qr)          W1 = 50          Unit Mat Deptt/ Stores
     Delivery (Dr)          W2 = 30          Unit Mat Deptt/Stores
     Service (Sr)          W3 = 10          Purchase Department
     Adaptability (Ar)          W4 = 10          Purchase Department
     1)      QUALITY RATING (Qr)      =     (Q1 + Q2 x 0.8 + Q3 x 0.5 + Q4 x 0)
                                             Q
          Where   Q =      Q1 + Q2 + Q3 + Q4
               Q1 =     Quantity Accepted
               Q2 =     Quantity accepted with Deviation (Demerit Factor = 0.8)
               Q3 =     Quantity accepted after rework (Demerit Factor = 0.5)
               Q4 =     Quantity Rejected
     2)     DELIVERY RATING (Dr)      =      Q1 x 100
                                         Q
          Where   Q =      Total consignments delivered
                          Q1 =     Consignments delivered in Time
3)     SERVICE RATING (Sr)
           To be given on a scale of 1 to 10 (10 being the Very Good Service,
           Response Time, both Pre- Sales and After-Sales. e.g. 7 point = 70%).
4)     ADAPTABILITY TO CHANGES & IMPROVEMENT (Ar)
           To be given on a scale of 1 to 10 (10 being the Proactive in Improving the      Product &   Service, Very much Adaptable to Changes. e.g. 7 point = 70%).
VENDOR RATING GRADES
          A     100 u2013 80 %
          B     79 u2013 70 %
          C     69 u2013 60 %
          D     < 60 %
I just aware where we can do the configurations. But not understanding how to put the scores, weight ?

Dear Friends
Can you explain how to calculate this things thro VE implementation ? Where i can mention in configurations to calculate the these ratings?
QUALITY RATING (Qr)      =     (Q1 + Q2 x 0.8 + Q3 x 0.5 + Q4 x 0)/ Q
Where   Q =      Q1 + Q2 + Q3 + Q4
               Q1 =     Quantity Accepted
               Q2 =     Quantity accepted with Deviation (Demerit Factor = 0.8)
               Q3 =     Quantity accepted after rework (Demerit Factor = 0.5)
               Q4 =     Quantity Rejected
DELIVERY RATING (Dr)      =      Q1 x 100 /    Q
          Where   Q =      Total consignments delivered
                          Q1 =     Consignments delivered in Time
There after only I can do the these ratings weighing %. Please help me out

Vendor evaluation - General Service and support

Hi
What are the subcriteria that can be under General Service and support?
How the scores are calculated for this?\
If manual where can we enter the scores for these?
Regards
Soumen

Hi,
Following are the answers for your questions.
What are the subcriteria that can be under General Service and support?
Ans: - Subcriteria can be defined by us as per our requirement but SAP has provided following 2 Subcriteria;
- Quality of service
- Service timeliness
How the scores are calculated for this?
Ans: - For above 2 subcriteria, you can assign a scoring method as following;
C Determination from quality rating of service
D Determination from timeliness rating of service
Config Path: - SPRO > MM > Puchasing > Vendor Evaluation > Define Criteria > Here maintain subcriteria for Service criteria and assign the scoring method
At the time of processing Service Entry Sheet, under "Vendor evaln" Tab, you will have option to enter scores for the following subcriteria
- Quality of service
- Service timeliness
Once you enter scores here, it will get calculated in ME61, if automatic evaluation is configured for above 2 subcriteras
Config Path: - SPRO > MM > Puchasing > Vendor Evaluation > Define Purchasing Organization Data for Vendor Evaluation > Here for Service criteria and it's subcriteria do not activate manual maintenance indicator
If manual where can we enter the scores for these?
Ans: - And if you want to maintain values manually for Service criteria and subcriteria then activate the manual maintenance indicator in above config path and then maintain it duirng ME61 (Vendor Evaluation)

Vendor Evaluation and inspection type 17

All,
Iam using EWM QIE as a result of which i have to use inspection type 17. Does Vendor Evaluation work with inspection type 17. I know for a fact that in standard ECC Vendor Evaluation works with the 01 inspection type, but i am not sure of inspection type 17. Any input will be appreciated.
Thanks

Dear Ramki,
Thanks for your input; if I don't use the user exit, then the quality score is being shown there for the material level.
But still, there are a few problems:
1. Material wise Quality score, which is being displayed in ME64, is not getting updating in any of the table. Table ELBM is also blank. There is not even a single record.
2. The quality rating that is being calculated here is as per following:
     The user gives disposition for the incoming material as
          Qty accepted directly: A1
          Qty accepted after segregation: A2
          Qty accepted as major deviation: A3
          Qty accepted as minor deviation: A4
          Qty Rejected.     : A5
The formula is
Q.R. = (A11 + A2(-0.5) + A30.5 + A4(0.8) +A5(-1) - Line Rej. qty(-1)) /
               Total No. of Qty Received.
Final Q.R. = Q.R. - Mix up complaints*10 - Genuine complaints * 5
Since the formula have subtraction(negative quality score) also, I don't think that this subtraction or negative score would be able to capture in FM for Quality score procedure and the notification qty will not be able to be calculated.
So, to get the quality rating as per above and getting the same for the material wise also.
After that i need to get one report for vendor wise material wise report at month period.
How should I proceed?
Thanks once again for your valuable input.
Thanks & Regards,
SUMIT GUPTA

Vendor Evaluation Price Level For services

Hi expert, I've seen that the Main Criterion "Price" is just for materials, and I wanted to know whether there is a way of Calculating Scores for Automatic Subcriteria for services.
I also wanted to know if there is any other standar criterion for evaluating services.
Thanks !!

Hi,
Subcriteria can be defined by us as per our requirement but SAP has provided following 2 Subcriteria;
- Quality of service
- Service timeliness
For above 2 subcriteria, you can assign a scoring method as following;
C Determination from quality rating of service
D Determination from timeliness rating of service
Config Path: - SPRO > MM > Puchasing > Vendor Evaluation > Define Criteria > Here maintain subcriteria for Service criteria and assign the scoring method
At the time of processing Service Entry Sheet, under "Vendor evaln" Tab, you will have option to enter scores for the following subcriteria
- Quality of service
- Service timeliness
Once you enter scores here, it will get calculated in ME61, if automatic evaluation is configured for above 2 subcriteras
Config Path: - SPRO > MM > Puchasing > Vendor Evaluation > Define Purchasing Organization Data for Vendor Evaluation > Here for Service criteria and it's subcriteria do not activate manual maintenance indicator
And if you want to maintain values manually for Service criteria and subcriteria then activate the manual maintenance indicator in above config path and then maintain it during ME61 (Vendor Evaluation)

Vendor evaluation on JIT delivery

In case of JIT scenario how vendor rating on delivery, as schedule lines are dynamically changed in past and future.
Does this mean that for a JIT scenario vendor is suppose to be delivering on time? And rating could be affected. Is there sufficient justification for this functionality not being available? Most of the automotive industry works on daily JIT schedules. Clients say that it is important for the on-time and quantity reliability of vendors to be evaluated based on Goods receipt against JIT call. How vendor evaluation can be performed based goods receipt using JIT call.
Rgs

Hi Pankaj,
I found a table called T147K ..
I am passing xyz Purch Org. and Scoring Method is 3 (on-time delivery)..
Here I found that
Percentage Score Percenta
000        100   100.0
010        90    101.0
020        95    102.0
100        80    110.0
200        60    120.0
300        40    130.0
400        20    140.0
500         5    150.0
999         1    199.9
050        95    95.0
100        65    90.0
200        75    80.0
300        60    70.0
400        40    60.0
500        20    50.0
600         5    40.0
999         0     0.1
which one we need to consider when .. I am doing the calcuation to get percentage for vendor...
Vendor Percentage =
( actual Del date - statistical del date) / Std del time var * 100.
Raghunath.S
Edited by: Raghunath Shyamala on Aug 29, 2008 1:07 PM

System to consider only regular vendors in rating

Dear Gurus,
During vendor rating at present system is considering all vendors who were not supplied for entire quarter(say).ie, system now showing the vendors who supplied one time, un supplied vendors. but the requirement is system has to consider only regular vendors in vendor evaluation. how can we put the restriction.

Analyse your vendors with MC$4 transaction.
then exclude the vendors who were only used one time via the multiple selection in your selection screen of report RM06LBAT

Vendor delivery rating for scheduling agreements

Dear All,
I need to check vendor delivery rating for sch. agreements. Mc$6 is not usefull because of sch. lines it works fo Po's. please suggest me how to get this.
Regards
MSR

Hi,
Vendor delivery rating is calculated via the formula actual delivery date (in me38) -statistical deliver date( in me38)/ statistical delivery date. points need to be maintained for ratio which is calculated in the above case in the path spro -materials management-purchasing -vendor evaluation-maintain purchase organisation data-points for automatic criteria
after which execute the t code me63 for automatic valuation
Regards
Sandeep

Vendor evaluation ME6H..?

Hi all
Can anybody explain about the transaction ME6H, in this transaction i m getting 2 times of all evaluation rating scores. why it is showing 2 times..
Pls explain me about the ME6H..
And explain me exactly were we will get the ranking list by Period wise (Eg, april 08 to july 08)..
Thanks
sap-mm

Hi,
I don't think there is any such option for the same....but you can sort the list from For example, if you want the main criterion "Delivery" in the first column, position the cursor on its column description and choose Edit --> Re-sort by main crit. Return to the original column arrangement by choosing Edit --> Original list.
You can branch to the vendor evaluation. To do so, position the cursor on the desired vendor and choose Environment -->Display evaluation.
Choose Environment--> Display vendor to display the vendor master record.
so as per my knowledge there are main crieteria like price, quantity, delievery for calculating scores.......
Also i have provided link for further information abt the same:
http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97fc5414511d188fc0000e8322f96/frameset.htm
Hope it helps...
Wil let you know abt ME6H after i have my system...
Regards,
Priyanka.P
AWARD IF HELPFULL
Edited by: Priyanka Paltanwale on Jul 26, 2008 7:16 AM

Vendor Evaluation / Rating

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