Exciting updates coming to SourceDay supplier management
We’re introducing a powerful enhancement that will streamline how you manage your supplier relationships. With this update, you’ll have one centralized hub to oversee supplier settings, users, risks, and performance - simplifying your workflow and improving visibility.
Vendor Scorecard Settings gives Admins the ability to control how the SourceDay supplier scorecard is calculated. SourceDay allows you to grade your suppliers on their performance by measuring data gathered from your ERP and within the platform. Suppliers are grading on the following:
Not a part of our Supplier Hub beta? Jump to the current scorecard settings here.
On-time performance
These settings allow you to control how the On-time metric of the Scorecard will be calculated. This On-time metric is based on when orders are received in full within your ERP in comparison to the collaboration date within SourceDay. The collaboration date may vary company to company (Due date or Promise date) and supplier to supplier (Ship date or Due date).
Step 1: What do you consider as on-time?
For some customers, early deliveries mean excess inventory holding costs that can hurt the bottom line. However other customers want inventory as quick as possible and might want to ignore early deliveries. You can configure the best range for your business needs by adjusting the number of days early or days late. Buyers can decide to penalize suppliers for early delivery or toggle that option off.
Step 2: Do you want to exclude weekends from on-time grading?
Once you've determined the on-time window you are ready to decide how to count the weekends. You can decide to exclude weekends, include weekends, exclude Saturday or exclude Sunday. For example weekends excluded an order line that is 7 calendar days late and 2 of those days are Saturday and Sunday, then those days would be ignored from the grades and the supplier would only be penalized for 5 days late.
Step 3: How do you want to grade suppliers for on-time performance?
Buyers can simply adjust the slider bar to determine the grade to assign for the percent of the time your supplier is on-time. For example with A = 95%-100% then suppliers with order lines received within the on-time range established at least 95% of the time will receive an A for On-time Delivery.
Responsiveness
These settings allow you to adjust the grades earned by suppliers responding to new orders or change requests on order lines. The responsive metric is calculated by the supplier taking action on new POs and proposed changes from the buyer. When reviewing individual scorecards we will report the average amount of days it takes for a supplier to respond.
Step 1: Do you want to grade suppliers on responsiveness?
You might not want to grade how quickly suppliers respond to new order lines and change requests. If that is the case, simply toggle this option off.
Sept 2: How do you want to grade suppliers for on-time performance?
Buyers can simply adjust the slider bar to determine the grade to assign for the percent of the time your supplier is responsive. For example with A = 95%-100% then suppliers who take action in SourceDay on 95% of their lines will earn an A for responsiveness.
Price variance
The Price variance metric is calculated by the percentage of change between the receipt price and the original price. times the price is increased or decreased compared to the master cost in the ERP.
Step 1: Do you want to grade suppliers on price variance?
You might not want to grade how quickly suppliers price variance. Some clients do not maintain an accurate master cost list within their ERP so they disable this setting.
Sept 2: How do you want to grade suppliers on price variance?
Buyers can simply adjust the slider bar to determine the grade for price variance.
Overall score
You get to determine how important each metric of the supplier scorecard is by adjusting the slide bar.
Current scorecard settings
We currently use four different metrics to track your supplier’s performance and then generate an overall grade based on your Scorecard Settings and each metric’s grade.
How do I adjust Vendor Scorecard Settings?
1) Click on your name dropdown in the upper right-hand corner
2) Click Account Settings
3) Click the Vendor Scorecard Settings option on the left side of the screen
On-time Settings
These settings allow you to control how the On-time metric of the Scorecard will be calculated. This On-time metric is based on when orders are received in full within your ERP in comparison to the Due Date or Promise Date. For suppliers collaborating on Ship Date this metric is calculated when an order is marked as shipped in full within SourceDay compared to the agreed upon ship date.
Penalize Early Deliveries
Enable/Disable if you want to penalize your suppliers for delivering before the Due Date/Promise Date
Points Received For Grade
Enter the number of points you want to allocate to each grade for the On-time metric. If this metric is the most important and you want to weight this heavier in the suppliers overall grade then add more points per grade.
- All points are added up at the end to calculate the overall grade
- This is how you can determine the weight of this metric
On-time Threshold
Slide the circles to the left and right to adjust the On-time Threshold. 2 to 3 day windows before and after the Due Date/Promise Date is standard for early arrivals and processing times.
Ranges
Slide the circles to the left and right to set the range for each grade
- Determines the grade for the percent of the time your supplier is On Time
- Make sure the ranges line up with no gaps
Price Variance Settings
These settings allow you to control how the Price Variance metric of the Scorecard will be calculated. This Price Variance metric is calculated by the percentage of times the price is increased or decreased compared to the master cost in the ERP. Some clients do not maintain an accurate master cost list within their ERP so they disable this setting.
Active
Enable/Disable the Price Variance metric from being used and calculated in the scorecard.
Points Received For Grade
Enter the number of points you want to allocate to each grade for the Price Variance metric
- All points are added up at the end to calculate the overall grade
- This is how you can determine the weight of this metric
Ranges
Slide the circles to the left and right to set the range for each grade
- Determines the percent of the time the price is increased or decreased on the receipt compared to the master cost in your ERP
- Make sure the ranges line up with no gaps
Responsive Settings
These settings allow you to control how the Responsive metric of the Scorecard will be calculated. This Responsive metric is calculated by the number of weekday hours it takes suppliers to take an action or respond to new orders and updates to orders in SourceDay.
Points Received For Grade
Enter the number of points you want to allocate to each grade for the Responsive metric
- All points are added up at the end to calculate the overall grade
- This is how you can determine the weight of this metric
Ranges
Slide the circles to the left and right to set the range for each grade
- Determines the amount of time it takes suppliers to respond in SourceDay
- Make sure the ranges line up with no gaps
Quality Settings
(Only Available if you have the SourceDay Quality Module)
Quality Grade Type
Select how you would like to grade the Quality metric.
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Inspected Item Ratio - The overall quality score is based on the Item Ratio method, which highlights the percentage of received items with quality events in the past 30 days without defects using the following formula:
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(Number of Parts Received - Number of Defective Parts) / Number of Parts Received
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Inspection Ratio - The overall quality score is based on the Inspection Pass Rate method. The Inspection Pass Rate highlights the percentage of Inspections with quality events in the past 30 days that Pass using the following formula:
- Number of Passing Inspections / Number of Inspections
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Non-Failing Item Total Ratio - The overall quality score is based on the Non-Failing Item Total Ratio method. The method highlights the percentage of items that did NOT fail with quality events in the past 30 days, compared to the TOTAL quantities received for active SourceDay suppliers in the past 30 days using the following formula:
- (Qty Received OVERALL for time period – Qty Failed on QCE)/Qty Received OVERALL for time period
Points Received For Grade
Enter the number of points you want to allocate to each grade for the Responsive metric
- All points are added up at the end to calculate the overall grade
- This is how you can determine the weight of this metric
- Set all to 0 if you do not use Quality
Ranges
Slide the circles to the left and right to set the range for each grade
- Determines the percent of time your suppliers have orders that pass their inspections
- Make sure the ranges line up with no gaps
Overall Thresholds
The points entered under the A Grade Points from each metric will be totaled up at the end and displayed as Max Available Points. Enter the point threshold for each grade to calculate the overall grade. Think of this as a Grade Point Average (GPA).
Enter 0 for each of the Grade Points on a metric to exclude it from the Max Available Points.
Save
Click the Submit button to save settings
Changes coming soon!
Keep Learning
Reviewing Supplier Performance
Individual Supplier Scorecards