VENDOR EVALUATION

The Vendor Evaluation component supports you in optimizing your procurement processes in the case of both materials and services

In the SAP System, Vendor Evaluation is completely integrated into the MM Purchasing Component within Materials Management. This means that information such as delivery dates, Prices and quantities can be taken from purchase orders.

Vendor Evaluation also uses data from the Quality Management component, such as the results of incoming inspections or quality audits. Vendor Evaluation accesses basic Materials Management data, Inventory Management data (such as goods receipts), and data from the Logistics Information System (LIS). The LIS data is stored in the information structure S013.

CUSTOMIZING

Before you can work with the Vendor Evaluation component, the system settings must be maintained.

MENU PATH FOR CUSTOMIZING VENDOR EVALUATION:

SPRO -> IMG -> MATERIALS MANAGEMENT -> PURCHASING -> VENDOR EVALUATION DEFINE WEIGHTING KEYS

DEFINE CRITERIA

DEFINE SCOPE OF LIST

MAINTAIN PURCHASING ORGANIZATION DATA

DEFINE WEIGHTING KEYS

In this step, you define the weighting keys for the main criteria of vendor evaluation. Weighting keys 01 and 02 are defined in the standard system. You combine the following weighting shares for the standard main criteria:

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Main criterion       Key 01    Key 02

Price 1 5Quality 1 5Delivery 1 2Gen. service/support 1 1Ext. service provision 1 2

ActivitiesEnter the weighting keys and a short text describing the keys.NoteYou define the weighting shares (weighting factors) for each purchasing organization in the work step Define Purchasing Organization Data for Vendor Evaluation.

Execute weighting keys

Click on and then on come back to the initial screen of SPRO

DEFINE CRITERIA

In this step, you define the criteria by which the system computes scores for vendors and specify whether the scores for the sub criteria are computed manually, semi-automatically, or automatically.

Hinweis

You can also store your own methods of computation for the scores for sub criteria in the form of user exits. The enhancement MM06L001 is available for this purpose.

The SAP standard system includes the following evaluation criteria:

Price

o Price level

o Price history

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Quality

o GR lots

o Complaints level

o Quality audit

Delivery

o On-time delivery performance

o Quantity reliability

o Compliance with shipping instructions

General service/support

Externally performed service/work

o Quality of service provision

o Timeliness of service provision

You can change the descriptions of these criteria.

Recommendation:

You can define up to 99 main criteria. Make sure you limit the main criteria to the most important ones, so that lists do not become too crowded. We recommend a maximum of eight main criteria.

Activities

1. Enter all further criteria you need and maintain a description/name (this appears on screens and in dialog boxes) and a short text (appears as column heading in ranking lists).2. Specify the sub criteria for each main criterion via Go to -> Sub criteria.For each sub criterion, enter the scoring method. If you have created a user exit for the sub criterion, enter it.

Note

For each purchasing organization you then specify whether the main and sub criteria can be maintained manually. You also determine the weighting of the sub criteria.

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Execute define criteria

And as said earlier for every main criteria there will be sub criterions. So in order to check whether sub criteria’s are maintained for each main criteria just select the criteria and click on sub criteria the system pop ups the sub criteria’s that were maintained in each main criteria’s as below.

In the same manner also check for the remaining 5 main criteria’s which are as follows: Quality:

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Delivery:

Services

Services

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Invoices

As shown above all these sub criteria’s are to be maintained and are mandatory if not so the system throws an error “Purchasing organization data for XXXX is incomplete or not properly maintained”

DEFINE SCOPE OF LIST

In this step, you can define various types of list, each representing different main criteria or the same main criteria in a different order.

In the standard system, the scope-of-list parameters 'standard' and 'version 1' are supplied as an example:

The parameter Standard provides the user with a ranking list of vendors by overall score. The main criteria are arranged in the order "Price", "Quality", "Delivery", "General service/support” and "Externally performed service/work".

The parameter Version 1 yields a ranking list of vendors sorted according to the score for the main criterion "Price". Then follow the overall evaluation and the main criteria "General service/support", "Quality", "Delivery", and "Externally performed service/work".

Activities |

1. Enter the scope-of-list parameters and their designations.2. For each parameter, choose Go to -> ranking list content.3. Define which main criteria are to be displayed and specify the order in which the main criteria are to be shown.4. Specify the line for the overall evaluation with the entry '_'.

Note

You can also change the content of the scope-of-list parameters "Standard" and "Version1".

Execute define scope of list

There is nothing to do in this assignment as the above has been maintained in the standard system itself.

MAINTAIN PURCHASING ORGANIZATION DATA

In this step, you define individual Vendor Evaluation System settings for each purchasing organization.

Activities:

Maintain the following data:

In the process, please note that all parameters must be maintained in order for the system to be able to compute scores.If, for example, you do not maintain any smoothing factors for the criteria "on-time delivery performance", "quantity reliability", and "compliance with shipping instructions", the system will not be able to compute the scores.

Control parameters

On the detail screen for the purchasing organization, define:

General parameters

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o The best score that a vendor can achieve (applies to all sub criteria).

o The maximum number of days data may exist in the system and still be taken into account in the vendor evaluation (applies to all sub criteria).

o The calendar used for the computation of on-time delivery performance and adherence to the confirmation date.

o The form (layout set) used to generate the vendor evaluation sheet. If you make no entry, the standard form MELDRUCK is used.

Price level

o Indicator showing whether or not the vendor is the only source of a material.

Complaints level

o Percentage that indicates the maximum percentage of the total volume of business done with a certain vendor that the costs associated with complaints regarding materials supplied (and/or rejection thereof) may reach. If this percentage is exceeded, the vendor is awarded the lowest score.

Quality audit

o Indicator showing whether the average score of all quality audits is to be taken, or whether the result of the most recent audit is to be used in computing scores.

On-time delivery performance

o The delivery time variance that counts as 100%.

o The minimum delivery quantity.

o The indicator showing whether or not the minimum delivery percentage is adopted from the material master record.

Smoothing factorsThe smoothing factors for:

o The delivery date variance and the quality and timeliness of an externally performed service.

o The quantity variance.

o Compliance with shipping instructions.

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Note

The parameters for the sub criterion "on-time delivery performance" are also applied to the sub criterion "quantity reliability".

Evaluation criteria

Specify which main criteria apply to the purchasing organization and whether these may be entered manually or changed after automatic determination.

For each main criterion, define the weighting of the sub criteria and specify whether they may be maintained manually.

Weighting

Define the composition of the weighting keys that are valid for this purchasing organization. The weighting keys themselves are defined in the step Define Weighting Keys.

Points scores for automatic criteria

Here you define the scores for certain intervals of variances.

Notes on transport

You transport number range objects as follows:

Choose Interval -> Transport in the accounting document Number Range screen.

All intervals for the selected number range object are deleted in the target system first. After the import, only the intervals you export are present. The number statuses are imported with their values at the time of export.

Dependent tables are not transported or converted.

Execute maintain purchasing organization data

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In this step we need to select “0001” purchasing organization and then select copy and there we need to maintain our purchasing organization data as shown below.

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In the same screen select the desired purchasing organization and then click on main criteria then the system leads to a sub screen where it will pop up all the criteria’s that were defined and will be as follows

Double click on main criteria

Now in the above screen select the criteria and then double click on sub criteria here we can see the sub criteria’s which we maintained earlier

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By double clicking on sub criteria’s the system pop up’s a window as shown below

Above check marked box indicates the system whether or not the user can change the score for the criterion that was determined by the system.

Set this indicator if you want to make it possible to change the score.

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Also check point scores for automatic criteria by selecting the desired criteria and then by double clicking on the highlighted criteria as below

By double clicking the system leads to a window as below

In the same manner for every criterion there will be point scores for criteria’s so that depending upon the evaluation system rates the vendor by different scores.

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In the same manner also go for the remaining criteria’s as shown below

For Delivery

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For Services

For Services

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For Invoices

If any one of the above mentioned data is not properly maintained then the system throws the following error as “Purchasing organization data for “xxxx” is not properly maintained or in complete”.

By this the customizing settings for vendor evaluation is completed.In order to check the functionality go to the transaction “ME61”

Or follow the menu path in the front end as SAP EASY ACCESS -> Logistics -> Materials Management -> Purchasing -> Master data -> Vendor Evaluation

After providing the necessary data then press enter so that the system leads to a sub screen where we can maintain the evaluation data for the main criteria and is as below

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Select any one of the criteria and then press enter then the system pop ups the score or rating of that vendor and will be as shown below

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By clicking on main criteria on the above screen the system shows the score of the vendor and will be as follows

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In the same screen click on Auto. New Eval. / Mcrit then the system shows the scores of that vendor which will be accounted or computed by the system automatically by itself

Also we can go for automatic evaluation where in which the system evaluates the vendor and this evaluation can be done in the transaction “ME63” for Automatic New Evaluation

Provide the necessary data and click on then system automatically evaluates the vendor depending up on previous records or the data that was captured by the system and will be as follows

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When we execute system pop up’s a window asking for the weighting keys. Select the desired weighting key from the option and press enter

After providing the necessary data then at once when we press enter system starts to perform the operation in the back ground and will pop up a new window with the results that were calculated by the system and are as follows:

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In the same screen click on “All logs” then the system pop up’s a detailed information of score’s for the desired or for selected vendor and those details are as follows:

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In order to check compare evaluations then go for the transaction “ME64”

Execute it by providing necessary data

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In the same screen click on “evaluation” then automatically system calculates the scores depending upon the invoice, quality and delivery of goods which were underwent by the vendor.

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By clicking on the “main criteria” in the same screen system leads to sub criteria of the main criteria.

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By clicking on system shows the remaining sub criterions that were scored by the system

By clicking on system shows the remaining sub criterions that were scored by the system

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By clicking on system shows the remaining sub criterions that were scored by the system

By clicking on system shows the remaining sub criterions that were scored by the system

By clicking on system shows the remaining sub criterions that were scored by the system

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After evaluating the comparison then click on “All logs” then system shows the behavior of this vendor

In order to check the documents that were changed go to the transaction “ME6A”

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Execute the transaction and the system will show all the documents that were created and changed.

To view the ranking list of the vendor go to the transaction “ME65”

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Maintain the following data and then execute

System gives the ratings for the vendor and by clicking on the evaluation system shows the valuation that was captured in the earlier evaluation transactions.

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By clicking on the main criteria in the same screen system shows the data for main criteria which is as below

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In order to view the ranking list of vendor evaluations based on material / material groups go for the transaction “ME6B”

Execute the transaction

In order to view vendor evaluation analysis then go for the transaction “ME6H”

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Execute the transaction

In order to view the evaluation pictographically then click on in the same screen then system pop up’s a window asking for

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By clicking on the system shows the graphical view for the evaluation of this vendor

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To view or to get print out of the evaluation then go for the transaction “ME6F”

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Execute the above transaction

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To check vendors without evaluation go for the transaction”ME6C”

Execute the above transaction

Choose or click on choose all main criteria

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Then click on maintain criterion then system pop up’s a message below the screen as

To check the vendors that were not were not evaluated over a period go for the transaction “ME6D”

Provide the necessary data as shown and then execute then the system pop up’s a message at the end of the

screen as .

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