A Supplier Scorecard is an evaluation tool used to assess the performance of suppliers.

Supplier scorecards can be used to keep track of item quality, delivery, and responsiveness of suppliers across long periods of time. This data is typically used to help in purchasing decisions. A Supplier Scorecard is manually created for each supplier.

To access Supplier Scorecard, go to: > Home > Buying > Supplier Scorecard > Supplier Scorecard

1. Prerequisites

Before creating and using a Supplier Scorecard, it is advised that you create the following first:

• Supplier

1. How to create Supplier Scorecard

1. Go to the Supplier Scorecard list, click on New.
2. Select a Supplier to score.
3. Select the evaluating period whether weekly, monthly, or yearly.
4. Setup the scoring function (details in next section).
5. A supplier scorecard is created for each supplier individually. Only one supplier scorecard can be created for each supplier.

2. Features

2.1 Scoring Setup

The supplier scorecard encompasses designated evaluation periods where the supplier’s performance is assessed. These periods may occur weekly, monthly, or yearly. The present score is derived from each evaluation period’s score, determined by a weighting function. The default calculation method involves a linear weighting across the preceding 12 scoring periods. However, this formula is customizable to suit specific preferences.

Supplier Standings

The supplier status is employed to efficiently categorize suppliers according to their performance, with customization available for each supplier.

Moreover, a supplier’s scorecard status can be utilized to limit their participation in Request for Quotations or the issuance of Purchase Orders.

2.2 Criteria Setup

To create a new Criteria, go to Buying > Supplier Scorecard > Supplier Scorecard Criteria:

Note: Criteria weights for a scorecard should add up to 100.

2.3 Supplier Scorecard Variables

The calculation method for each criterion is determined by the “Criteria Formula” field, which utilizes various predefined variables. These variables are calculated over the scoring period for each supplier. Examples of such variables include:

• Total number of items received from the supplier
• Total number of accepted items from the supplier
• Total number of rejected items from the supplier
• Total number of deliveries from the supplier
• Total amount (in dollars) received from a supplier

These variables are predefined, but additional variables can be added through server-side customizations. If the variable being created is for a custom field, the “Custom” checkbox should be ticked.

The criteria formula should be tailored to evaluate suppliers based on each criterion in a manner that aligns with the company’s specific requirements.

2.4 Evaluation Formulas

The evaluation formula uses the pre-established or custom variables to evaluate an aspect of supplier performance over the scoring period. Formulas can use the following mathematical functions:

• addition: +
• subtraction: –
• multiplication: *
• division: /
• min: min(x,y)
• max: max(x,y)
• if/else: (x) if (formula) else (y)
• less than: <
• greater than: >
• variables: {variable_name}

It is crucial that the formula be solvable for all variable values. This is most often an issue if the value resolves to 0


2.5 Evaluating the Supplier 

To generate an evaluation for each Supplier Scorecard Period, you can click the “Generate Missing Scorecard Periods” button. This action provides insight into the supplier’s current score, accompanied by a visual representation illustrating the supplier’s performance trend over time. Additionally, any relevant actions taken against the supplier, such as warnings during RFQ and PO creation, or restrictions on these features for the supplier, are documented in this section.

3. Related Topics

1. Supplier
2. Supplier Quotation