Vendor Performance
Overview
Vendor Rating widget provides the score of Vendors based on their promptness, quality, and quantity indexes. This widget 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.
- Quality (Delivery quality): The system evaluates the overall quality of delivered items, ensuring they meet specified standards and comply with agreed-upon specifications.
- Accuracy (Quantity of items delivered): The system 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 (Delivery timeliness): 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 time frames. This process aids in optimizing the supply chain, ensuring reliability, and fostering strong partnerships between vendors and their clients.
Core indexes calculation logic
This table shows the calculation logic of each index.
| Index | Calculation logic |
|---|---|
| Promptness |
Measures on-time delivery of goods. On-time deliveries = Purchase Order line received date is on or before early delivery date. If there are partial receipts, the latest receipt date is considered for calculation. Total Deliveries = Delivered Purchase Order lines count On-time delivery percentage = (On Time Deliveries ÷ Total Deliveries) × 100 |
| Accuracy |
Measures on-time delivery of goods. On-time deliveries = Purchase Order line received date is on or before early delivery date. If there are partial receipts, the latest receipt date is considered for calculation. Total Deliveries = Delivered Purchase Order lines count On-time delivery percentage = (On Time Deliveries ÷ Total Deliveries) × 100 Accuracy Percentage = (Accurate Deliveries ÷ Total Deliveries) × 100 |
| Quality |
Evaluates whether delivered goods meet quality standards. Accurate Deliveries = Rejected Quantity in Purchase order line is equal to zero. Total Deliveries = Delivered Purchase Order lines count Quality Percentage = (Quality Deliveries ÷ Total Deliveries) × 100 |
Index scoring
Each index is rated as:
- High: Above 66.66
- Medium: 33.33 to 66.66
- Low: Below 33.33
Comprehensive score
Vendor Score is measured on 1-10 scale. Equal weightage of 33.33% is assigned to each index to calculate overall score.
Score = (Promptness % *33.33 + Accuracy %* 33.33 + Quality% *33.34)/10
Rolling 12-month analysis
Performance is assessed using the last 12 months of PO receipt data and ending with the month before the run date.
Granular Insights
Performance is tracked for each Vendor and Vendor Group combination.