Material Management

User training Manual Vendor Evaluation ECC 6.0

Training Manual
Materials Management

TMM_12– Vendor Evaluation

(Vendor Evaluation Process and Report)

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User training Manual Vendor Evaluation ECC 6.0

Document Identification TMM12_Vendor Evaluation_V1.0

Process Area Process Organizational Unit

MM Vendor Evaluation Depok

VERSION CONTROL

Prepared by Renuka Gorthi

Date 04-September-2018

Reviewed by Mangesh Pote

Date 14-Sep-2018

Approved by

Date

RECORD OF CHANGES

Type: A = Added; M = Modified; D = Deleted; C = Created; F = Finalization

Date Version Create by Type Changed Items Description

04-Sep-2018 0.1 Renuka C Creation of document

14-Sep-2018 1.0 Renuka F Incorporated Finalize document

peer review
comments

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User training Manual Vendor Evaluation ECC 6.0

Table of Contents
1. Process Overview............................................................................................................. 4
2. Key Data Element:............................................................................................................ 4
3. Process Specific Pre-requisites:.....................................................................................4
4. Process Scenario: Vendor Evaluation Process.............................................................5

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User training Manual Vendor Evaluation ECC 6.0

1. Process Overview
Vendor evaluation is a process that provides a basis for selecting and controlling sources of
supply. The user can specify and weight the main criteria for evaluating a vendor. The main
criteria are:

• Delivery reliability

• Price

• Quality

• Quantity reliability

The main criteria can be divided into sub criteria. SAP system then computes a score for the
vendor based on the weightings given to the criteria.

In MIKA Price and Quality scores will be given manually and Quantity reliability and On Time
delivery scored are calculated automatically by the system.

An overall score is calculated based on weightage given to each criteria and a Ranking is given
to each Vendor on the basis of Overall scores.

2. Key Data Element:

Sr. No Key Data Element Value Comment
1 Company Code 1. 1105 1. PT RAGAMSEHAT MULTIFITA

2 Purchasing 1. 1000 1. Mitra Keluarga PORG

Organization

3 Plant 1. 1610 1. MIKA DEPOK

2. 1620 2. MIKA DEPOK RJ
3. 1000 3. MIKA HOLDING

3. Process Specific Pre-requisites:

Before a Physical Inventory Document can be created, the following information is required:

Material - Material (Product Code) master should be created

Org Structure Configuration – Company Code, Plant, Storage Location and all other Organization
Structure.

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BP/Vendor Master – Vendor Master Data should be created

4. Process Scenario: Vendor Evaluation

Process

4.1 Process Step: Vendor Evaluation Process

This procedure explains the process steps in detail to run Vendor Evaluation Report.

1.1.1 Access for Vendor Evaluation Report

Easy Access Menu NA. Custom T-code ZMME020

Transaction Code ZMME020

1.1.2 Procedure Specific Pre-requisites

 Maintain Vendor Evaluation score and configurations.

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 For any PO, Quantity scores will be calculated once the GR delivery completion indicator is set
for that PO.
 For any PO, On Time delivery scores are calculated once the GR is done for the PO.

1.1.3 Procedure Specific Master Data setup

Business Partner, Vendor Master and Material master should be maintained.

1.1.4 Run Vendor Evaluation Report

Access:

Easy Access Menu NA. Custom T-code ZMME020

Transaction Code ZMME020

Vendor Evaluation Report: Selection Screen

Click on Execute to run the Vendor Evaluation Report.

Field Description R/O/C Values

Key that determines the weighting of
Weighting key R 01
main criteria.
Purchasing
Denotes the purchasing organization. R 1000
Organization

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Plant Plant code O 1610

Vendor Vendor Code O 300000

Material Material Code O 1100000118
From date - to date for which Vendor
Period to Analyze O 25.07.2018 - 28.08.2018
Evaluation is required

Drop down values can be seen by key F4 or clicking icon on the field.
Vendor Evaluation Score: Vendor Level

Vendor Evaluation scores for Automatic criteria Quantity and delivery will be displayed.

This scoring is done at overall Vendor level.

Scores for Price and Quality can be Entered Manually.

R/O/
Field Description Values
C
Score out of 100 as per Pricing provided by the
Price R 80
vendor
Score out of 100 as per Quality of goods provided
Quality R 60
by the vendor

Once the scores for Price and Quality are entered, click on check to see Overall Scores and
Ranking.

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Overall Scores calculated as Per the Weighing key.

For E.g. if Weighing = 1 (Equal Weighing) , then Overall Score = 25% of each main criteria.

The Automatic scores for Price and Quantity are calculated as per Standard SAP, using formula:

Overall Score = (1-Smoothening factor)*Previous score + (Smoothening factor * Current

score)

On Time delivery % = (No of days/Standard delivery Variance) * 100

Smoothening factors are defined in the Vendor Evaluation configuration settings.

Please note:

1. For any PO, Quantity scores will be calculated once the GR delivery completion indicator is set
for that PO.
2. For any PO, On Time delivery scores are calculated once the GR is done for the PO.

Rankings are defined in the systems in table ZMM_VENDOR_EVAL_RANK, and are given as per Overall
score range:

Overall Score From Overall Score To Ranking

60 75 Bronze
76 85 Silver
86 95 Gold
96 100 Platinum

Clicking on Save button will save the Vendor Evaluation scores in Z table ZMMTB_VEND_EVALN

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Vendor Evaluation Report: Material Level

If you double click on the Vendor Number at Vendor level screen, all the automatic scores (Quantity and
On Time delivery) for all the Materials procured by that vendor will be displayed.

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If you Double click on each Material then the Plant level scores for that material will be displayed.

Vendor Evaluation Report: Plant Level

On clicking on the Plant icon at Vendor level, Plant level scores(for automatic criterias only) will be
displayed.

Vendor Evaluation Report: Print

To Print report, click on icon on each of Vendor Evaluation screen.

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Provide the Printer details:

Print request will be sent to Printer mentioned above.

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