Evaluating suppliers is crucial for a good logistics process because if they fail to perform or quality is not as expected, the rest of the process could be adversely affected. SAP offers several tools to attain the expected quality and excellence in suppliers. These tools allow suppliers to be assessed on various criteria such as quantity delivered, lead time, and price differences.
Furthermore, S/4 HANA adds a new functionality to improve this process: questionnaire based supplier evaluation.
S/4 HANA also includes“Purchasing categories” in supplier evaluation. This means suppliers can be classified according to the products they provide. Similar suppliers can be grouped together to ease the assessment process and the analysis of results.
Answers to questionnaires and automatic scoringduring the supply process can be analysed with new reports so as to select, when purchasing supplies, the most reliable suppliers. This optimises product supply and subsequent logistics processes.
SAP offers automatic supplier evaluation so that every time products are delivered, the tool automatically evaluates the suppliers on whether the correct quantity was delivered, whether the expected delivery date was met, and whether the price was as expected, amongst other factors. Each factor is weighed, as they may not all be considered equally important and shouldn’t be judged in the same way.
Therefore, automatic scoring is easily providedfor subsequent decision-making, when purchasing, on which supplier will best meet our supply needs.
This new way of evaluating requires purchasing managers to create questionnaires. The questionnaires feature Yes/No, single answer, multiple answer questions or text boxes, so the user has numerous options when creating a questionnaire. Each question is assigned a score value which can be customised in each questionnaire. These questions can be also be classified into sections and groups to make it easier to set up the questionnaire.
You choose how questions are grouped in questionnaires. They can be combined however you please, which gives you limitless possibilities.
Once the questionnaire has been created, it’s time to send it for evaluation. The person in charge of evaluation can easily and intuitively view a list of all the questionnaires to be completed in the evaluation of suppliers.
The most important aspect of the evaluation is the results analysis. S/4 HANA provides improved tools for this purpose with numerous ways to view the various rankings. The automatic evaluation offers a series of highly dynamic graphs which allow the suppliers who should be supervised or the most competitive suppliers to be easily identified. SAP offers several types of graphs such as bar charts, line graphs, or pie charts, which can satisfy all user preferences.
Questionnaire evaluation features similar tools to those in automatic evaluation. There are various types of graphs, filters, and settings for viewing the information.