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Monday, November 17, 2014

Vendor Evaluation in MM - Purchasing

How Is Vendor Evaluation Used?

  • Vendor Evaluation supports you in procuring both materials and external services, by making use of data from MM, from the Logistics Information System (LIS info structure S013), and from quality management.
  • An enterprise will want to evaluate it's vendors based on different criteria. This evaluation may be useful in negotiations with the vendor.
  • Vendor Evaluation will enable you to choose the most appropriate vendor for a specific requirement, and supports you in the continuous monitoring of existing supply relationships.
  • A precondition for the use of vendor evaluation is that you previously specify in customizing the criteria by which your vendors are to be evaluated, and how which aspects of their performance are to be rated.

General Information

  • Vendor evaluation is always evaluated for:
    • purchasing organization
    • vendor
  • Each time an evaluation is processed, the vendor gets an overall score, which is determined from the scores of the Main Criteria with the application of a weighting key.