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Vendor Evaluation

former_member315366
Active Participant
0 Kudos

Hi Freinds

While doing vendor evaluation i am getting the following error message

System settings for purchasing organization MGPO incomplete

Message no. ML061

Procedure

Contact your system administrator.

Procedure for System Administration

Make sure that at least one subcriterion has been defined for each main criterion. The descriptive texts must also have been maintained for all criteria in the required languages.

When maintaining the purchasing organization data, make sure that at least one subcriterion has been assigned to each main criterion. Each main criterion must be weighted.

Am i missing something here

Kindly help.

Regards

Eldee

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

in customization of vendor evaluation have u given sub-criterea for every main critera

because then only sytem will be able to award points to vendor

example main critera price

sub critera for price

price order history

market price

go to OLME-PURCHASING-VENDOR EVALUATION---SELCT u r purchase org. and click on main critera the clik on folder for sub criterea abd give the subcritera there save

former_member315366
Active Participant
0 Kudos

Hi

Thanks. I want to map the following scenerio

1. Performance Criteria

Contractor performance rating should be allocated points against the performance criteria (e.g. time management, standard of service etc.), based on the rating scale below:

Excellent: 10 points

Good: 7 points

Acceptable: 5 points

Unsatisfactory: 0 points

2. Performance Rating Formula

The reporting person shall determine the performance rating using the formula:

A = contractor’s point score x 100

Total maximum points

The contractor’s point score is the total of the points scored against the performance criteria. The total maximum points may vary from report to report; depending on the number of performance criteria the contractor is graded against.

3. Contractor’s Overall Performance

The assessment percentage should then be graded in accordance with the following:

Over 85% - excellent

Over 75 - 85% - good

Over 50% - acceptable

Below 50% - unsatisfactory

B) Rating of supplier’s performance

The objective of the supplier performance system is to provide a basis for evaluating the performance of suppliers. Vendor rating system is an important decision support tool for making decisions on share of business and identification of areas for improvement.

The vendor appraisal system will be based on a 100 base point level under the following key performance parameters:

a. Quality 40 points

b. Delivery 30 points

c. Price 20 points

d. Cost reduction/flexibility 5 points

e. Efficiency (Service levels) 5 points

A) Quality will be measured through the Quality Consistency Index (QCI). The QCI will be calculated as:

Number of consignments accepted during the year

QCI = -


Number of consignments received during the year

A consignment rejected once by the stores/ user department and accepted later for regularisation will be treated as rejected.

B) Delivery will be measured through on-time-in-full index (OTIFI). Deliveries calculated as:

Number of deliveries where quantity & delivery is within norms

OTIFI = -


Total number of deliveries during the year

All deliveries received more than 15 days in advance of the due date will also be treated as non-compliance with delivery schedules.

C) Price will be mainly used for providing a basis for comparing multiple supplier’s performance. This will be measured by Relative Price Index, which will be calculated as:

Number of quotations (Final) with the L1 prices

RPI = -


Total number of quotations submitted

D) Cost reduction/flexibility is a qualitative parameter based on a rating scale of 1 to 5. The supplier will be rated on the above scale based on initiatives taken by him for reducing material costs, ability to provide emergency services, maintain firm prices in an inflationary market scenario etc.

E) Efficiency (service levels) is a qualitative parameter based on a rating scale of 1 to 5. The supplier will be rated on the above scale based on response time for inquiries, information, ease in communication and dealing etc.

The vendor’s performance will be classified into high, medium and low levels within each of these parameters. The performance evaluation matrix is as follows:

The overall vendor rating will be as follows:

How do i do this

Regards

Eldee

Answers (0)