What are the Key metrics for Vendor rating in Automotive industries best practices

[Former Member]

What are the Key metrics for Vendor rating in Automotive industries best practices

[Former Member]

Hi Rajan,

SAP provide Vendor Evaluation and Rating system can be best to use for Automotive, which easy, simple and effective.

Please refer below:

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:

• Price
• Quality
• Delivery
• General service/support

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

• External service provision

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.

For more detail  http://wiki.scn.sap.com/wiki/display/ERPSCM/Vendor+Evaluation+in+MM-PUR

and also refer under SAP Best Practices- Automotive Industry section : http://help.sap.com/bp-auto#section1

Reward if helpful

Regards,

Sumit Pukal