Vendor Scorecard Settings gives Admins the ability to control how the SourceDay supplier scorecards are 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:
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.
Learn more about collaboration 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
Cost impact (price variance) looks at the difference between the actual unit cost of a purchase order line compared to the baseline value of what the item is supposed to cost or has cost historically; this value is then multiplied out by the quantity received in a given time period to see the full impact. The calculation is (actual unit cost * quantity) - (historical cost - original price * quantity) this will give you the dollar amount for cost savings or overspend.
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.