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Introduction:-

In this post I am going to write how vendor evaluation has been done using SAP Material Management module

In the SAP System, Vendor Evaluation is completely integrated into the MM Purchasing component within Materials Management. Vendor Evaluation accesses basic Materials Management data, Inventory Management data (such as goods receipts), and data from the Logistics Information System (LIS).

Vendor Evaluation: It is checking the performance of vendors based on different criteria for giving the ranking is called vendor evaluation. The vendor with highest rank can be chosen for sourcing or procurement activities.

The analysis of vendor evaluation can be made based on different criteria. Some of the important criteria are

1. Delivery

2. Quality

3. Price

4. Service

Basic setting or requirement before starting the vendor evaluation process

Vendor Evaluation Process

1. Define the weighting keys for main criteria of vendor evaluation: SPRO>MM>Purchasing >Vendor/Supplier Evaluation> Define Weighting Keys:


EQUAL WEIGHTS: All the Sub criteria under the main criteria will be the same weightage percentage

UNEQUAL WEIGHTS: All the sub criteria under the main criteria can have a different weightage percentage.

  1. Define the Criteria by which the system computes score for vendors: Specify whether the scores for the sub criteria computed manually, semi automatically or automatically. Can activate user exists customer own program to determine the scores (Performed by ABAP Team) SPRO>MM>Purchasing >Vendor / Supplier Evaluation> Define Criteria


Criteria can be price, Quality, Delivery etc


For each criteria, there is a sub criteria Ex: For Criteria Price, Price Level & Price List are the sub criteria. This will be based on standards




  1. Define the Scope of List


SPRO>MM>Purchasing >Vendor / Supplier Evaluation> Define Scope of List


Double click on Standard supplier evaluation




  1. Maintain Purchase Organization Data: SPRO>MM>Purchasing >Vendor / Supplier Evaluation> Maintain Purchase Organization Data


Update your purchase organization


Select Your Purchase Organization & Click on Main Criteria


Double Click on your main criteria & assign to your Sub Criteria


Select Weighting to assign the criteria




  1. Next, Check Point Scores for Automatic Criteria.


Create Vendor Evaluation: Use TCODE ME61 for vendor evaluation. Perform for about 2-4 vendors,

For Equal Weight Keys, Weighting Percentage will be equal Irrespective of any scores (same or different)


For Unequal Weight Keys, Weighting Percentage will be different Irrespective of any scores (same or different)


To generate a report, use TCODE ME6H

Evaluate sheet, use TCODE ME6F for all the vendors

Ranking list of the vendor TCODE ME65

Vendor Evaluation Transaction Code for reference

ME61 (Maintain)

ME62 (Display)

ME63 (Automatic New Evaluation)

ME64 (Compare New Evaluation)

ME65 (Evaluation Lists)

ME6A (Changes to Vendor Evaluation)

ME6B (Display Vendor Evaluation for Material)

ME6C (Vendors Without Evaluation)

ME6E (Evaluation Records Without Weighting)

ME6F (Print)

ME6G (Vendor Evaluation in the Background)

ME6H (Standard Analysis: Vendor Evaluation)

ME6Z (Transport Vendor Evaluation Tables)

Hope, It will also be helpful to you to find standard vendor evaluation process

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Do you have any further comments related to this topic? Do share them in the comments sections below without any hesitation.

Note – All the images are created by me and free to use/share

Regards

Harish Mallur
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