Suppliers are an intrinsic part of your supply chain, poor performance can hinder your business, and selecting the wrong supplier at sourcing stage can result in challenges later on. Supplier evaluation should be a cornerstone process as it provides you with an in-depth assessment of performance set against objective and detailed criteria.
Prokuria offers the possibility to build and maintain a scorecard for each supplier. T
In this article, we will cover how to build your scorecard and how to score a supplier.
Building the scorecard template
The first part of this process is to build your scorecard. This means that if you want to evaluate your suppliers and measure their performance against a set of targets, you first need to determine these targets and how important each of them is.
Prokuria offers the opportunity to utilize weighting according to the importance of certain criteria.
To build the scorecard you need to Navigate to your Account settings page - Supplier scorecard section.
Note: You need to have the account settings role enabled in order to access this page.
Under the supplier scorecard section, you can define your criteria, grouped as per your needs, and decide the maximum points a supplier can receive.
The criteria have to be of importance to you and can include how they perform in terms of delivery, their lead time, the quality of items supplied, the price, service levels and so on. This process of scoring is helpful because it assesses all of the suppliers against a very standard set of criteria. The result of this is an independent and objective assessment of how well the supplier is performing and whether they are meeting your needs in a way that is acceptable.,
Prokuria offers the opportunity to utilize weighting according to the importance of certain criteria. For example, if the price variation is viewed as very important aspect for your organization, then that will be given a higher weighting than something that is viewed as less important, which could be invoicing procedures, etc.
Filling the Scorecard for a supplier
Now that you built your scorecard you can start scoring your supplier.
To access the Scorecard section of a supplier you need to navigate to Supplier directory -> click on the respective supplier and then go to the Scorecard section.
The previously built template will appear and you can start to fill in the score for each criteria.
The scorecard You will notice the following columns:
- Group - the group of the criteria
- Criteria - the specific criteria
- Max points - the maximum number of points that you can assign for the respective criteria
- Weight-based on the total maximum number of points the weight of the respective criteria in the overall score
- Average - the average score of the suppliers scored so far in your Supplier directory
- Score - the actual score yo assign to the respective supplier for the respective criteria
- Last updated by - the last user that updated the score
- Last updated on - the date when the last user that updated the score
You will notice the overall score of the supplier will also appear as a separate column in the Supplier Directory.