Vendor Performance

Overview

Vendor Performance provides you with a grading system for vendors based on their promptness, quality, and quantity indexes. This takes purchase orders, receipts, and vendors returns into consideration to predict the grade of the vendor.

Vendor performance assesses the quality of delivery based on three indexes of High (Good), Medium (Ok), and Low (Poor) values:

• Delivery quality: The system evaluates the overall quality of delivered items, ensuring they meet specified standards and comply with agreed-upon specifications.
• Quantity of items delivered: It measures the accuracy of the delivered quantity in comparison to the ordered quantity. This helps in avoiding stockouts or excess inventory, contributing to efficient inventory management.
• Promptness: The system assesses the vendor ability to adhere to agreed-upon delivery schedules. Timely deliveries are crucial for maintaining smooth operations and meeting customer expectations.

By analyzing these factors, Vendor performance aims to gauge the effectiveness of a vendor in terms of delivering high-quality products in the correct quantities, within the agreed-upon timeframes. This process aids in optimizing the supply chain, ensuring reliability, and fostering strong partnerships between vendors and their clients.