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Supplier Evaluation successful S4 HANA - Introduction
Supplier valuation is the process of assessing a supplier's quality to conscionable a business's needs through qualitative and quantitative assessments. Based connected the feedback gathered done questionnaires, a scorecard is obtained for each supplier evaluated. The scorecard helps america to measure a supplier's strengths and shortcomings and to initiate measures for improvement. Scorecards besides alteration you to easy comparison suppliers wrong a adjacent group.
Questionnaires are usually filled retired by stakeholders successful the procurement process. By taking portion successful an evaluation, these stakeholders enactment arsenic appraisers.
Process Flow Diagram:
Business Roles:
Who is Category Manager?
A "category manager" successful supplier valuation is a procurement nonrecreational liable for overseeing the valuation process for a circumstantial class of goods oregon services a institution buys.
Role: /SRMSMC/CATEGORY_MANAGER. In the personalization object of the role, SLC: PFCG Role Attributes (/SRMSMC/PFCG_ROLE_ATTRIBUTES) the Category Manager role checkbox is ticked.
In SAP S4 HANA Supplier Evaluation, the class manager is liable for the following:
Managing Purchasing Categories
- Create, change, and deactivate purchasing categories
- Assign suppliers, interior squad members, and worldly groups to a purchasing category
Evaluating Suppliers
- Create and Change valuation templates
- Trigger evaluations to appraisers
- Review valuation responses and scorecards
Who is Questionnaire Manager?
In supplier evaluation, a "questionnaire manager" is the idiosyncratic liable for creating, maintaining, and managing the questionnaires utilized to measure imaginable suppliers; They prime the applicable questions and sections and assigning weightages to antithetic criteria wrong the questionnaire, ensuring a broad valuation is conducted.
Role: /SRMSMC/QUESTIONNAIRE_MANAGER. In the personalization object of the role, SLC: PFCG Role Attributes (/SRMSMC/PFCG_ROLE_ATTRIBUTES) the Questionnaire Manager role checkbox is ticked.
In SAP S4 HANA Supplier Evaluation, the questionnaire manager is liable for the following:
Managing Questionnaires
- Create questions and sections successful the question library.
- Create questionnaires on with weightage criteria for collecting circumstantial information, specified arsenic accusation astir merchandise prime oregon transportation reliability.
- Organizes the questionnaires successful specified a mode that they tin easy beryllium reused wrong the supplier valuation process.
- Assigning the purchasing categories for which questionnaires are relevant.
Who is Appraiser?
In supplier evaluation, an "appraiser" is an idiosyncratic wrong a institution who is liable for assessing and standing a supplier's show based connected established criteria.
Role: /SRMSMC/EVALUATION_APPRAISER. In the personalization object of the role, SLC: PFCG Role Attributes (/SRMSMC/PFCG_ROLE_ATTRIBUTES) the Appraiser role checkbox is ticked.
In SAP S4 HANA Supplier Evaluation, the appraiser is liable for the following:
Evaluating Suppliers
- Receive e-mails requesting them to capable retired valuation questionnaires
- Fill retired questionnaires and instrumentality them to Category Managers
Steps to measure suppliers successful S4 HANA
1. Manage Purchasing Categories
"Purchasing categories" successful supplier valuation refers to the classification of goods and services a institution buys from antithetic suppliers, grouping akin items unneurotic to amended measure and negociate supplier show based connected circumstantial merchandise oregon work categories, similar "office supplies," "IT hardware," oregon "raw materials," allowing for a much targeted valuation process erstwhile reviewing each supplier wrong that category
Open Manage Purchasing Categories App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Supplier Evaluation-> Supplier Evaluation by Purchasing class -> Switch to Supplier Evaluation by Purchasing Category -> Check the box.
1.1 Enter the General accusation (Name, Person Responsible) of Purchasing Category.
1.2 Enter the Suppliers whom should beryllium evaluated nether this Purchasing Category.
1.3 Enter the Employees (Internal Team) who are liable for this Purchasing Category and the suppliers nether the category.
1.4 Add the attachments if necessary.
1.5 Enter the Material Groups nether the Purchasing Category (optional).
"Supplier valuation weighting and scoring" refers to a method successful supplier valuation wherever antithetic criteria utilized to measure a supplier are assigned weights based connected their comparative value to the company, allowing for a much nuanced valuation by prioritizing definite aspects similar questionnaire, quality, price, oregon transportation clip erstwhile calculating an wide people for each supplier.
Open Supplier Evaluation Weighting and Scoring App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Supplier Evaluation-> Supplier Evaluation by Purchasing category->Determine Criterion-> Select 1 of 6 Criterion (Time, Quality Notification, Quantity, Questionnaire, Inspection Lot, Price) ->Maintain Weightage and Active Check Box
SPRO -> Material Management -> Purchasing-> Supplier Evaluation-> Supplier Evaluation by Purchasing category->Determine Criterion Scores->Maintain the people for variance %
2.1 If you would similar to acceptable circumstantial weighting for each purchasing category, you tin usage this app. Otherwise settings tin beryllium done successful SPRO arsenic fixed supra volition suffice.
2.2 Select the criterion and click connected + icon.
2.3 Enter the Purchasing Category and Weighting %
2.4 Enter the Variance % and the Scoring for a peculiar Purchasing Category.
Questions and sections are utilized successful questionnaires that you usage successful the supplier qualification and supplier evaluation processes.
Open Manage Questions App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Supplier Evaluation-> Basic Settings for Supplier Evaluation-> Create Question Library for Supplier Evaluation-> Maintain EN and click execute.
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Questions
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Sections
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Question and Section groups
3.1. Enter the Question Type (Yes / No, Multiple oregon Single Answer, Free Text), Question Name, Question Text and Explanation etc. You tin upload immoderate attachments if required.
3.2 Enable Attachments, Comments from Appraisers, Internal Note and prevention the question.
3.3 Similarly, participate Section Name, Section Title, Explanation, Internal Note etc.
4. Manage Evaluation Questionnaires
Manage Evaluation Questionnaires App helps america to negociate the repository of each questionnaires disposable for usage successful the valuation process. We tin signifier questionnaires depending connected the accusation we privation to gather, and we tin make circumstantial questionnaires.
- Questionnaire 1 is astir merchandise quality: To which grade bash suppliers conscionable your prime expectations?
- Questionnaire 2 is astir work attitude: What benignant of acquisition person appraisers wrong your institution gained with suppliers erstwhile they needed support?
Open Manage Evaluation Questionnaires App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Evaluation Questionnaires
4.1 Enter the External Questionnaire Name. (name disposable to appraisers)
4.2 Enter the Internal Questionnaire Name, Person Responsible. Purchasing Category.
4.3 Add the Section and Question from the erstwhile step. Maintain the Target and Minimum Score for the Questionnaire and Individual Section/ Questions. You tin besides marque a question arsenic mandatory, disqualifying etc.
4.4 Once questionnaire is saved, acceptable the presumption to released.
In the radical based valuation templates are acceptable up for adjacent groups of suppliers wrong peculiar purchasing categories and see the questionnaires applicable to place their strengths and shortcomings. Therefore, supplier adjacent groups arsenic good arsenic the due appraisers are assigned to valuation templates successful the group-based process.
Open Manage Evaluation Templates App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Supplier Evaluation Templates
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Supplier Evaluation Requests
5.1 Enter the Basic Date specified arsenic Evaluation Template Name, Deadline for Response (in Days), Internal Note, Purchasing Category to whom the valuation is launched, Person Responsible etc.
5.2 Enter azygous oregon aggregate Appraisers who are going to beryllium evaluating / scoring the suppliers. Note: The appraiser should person a SAP idiosyncratic ID that has a Business Partner. Refer to the SAP assets however to bash the BP synchronization. Creating Approvers | SAP Help Portal
5.3 Enter the Suppliers who volition beryllium evaluated erstwhile the template is launched. Usually, supplier database from Purchasing Category volition beryllium adopted her automatically.
5.4 Enter azygous oregon aggregate questionnaires that should beryllium launched to appraisers for evaluation. Similarly, participate the people and minimum people for the template. Weightage tin beryllium acceptable for the questionnaires individually.
5.5 Here, you tin edit the duty of appraisers to suppliers and duty of questionnaires to suppliers.
5.6 Enter the Evaluation Template Name and the substance to beryllium added successful the Appraiser's Email Invitation.
5.7 Once the template is saved, acceptable the presumption to released and click Start Group Based Evaluation to motorboat the template to appraisers. The email sent to appraisers from SOST is fixed for your reference.
In supplier evaluation, "evaluation responses" successful measure suppliers app refers to the answers oregon accusation provided by appraisers erstwhile completing a supplier valuation questionnaire oregon signifier successful effect to the appraisal criteria acceptable by the company.
Open Evaluate Suppliers App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Evaluation Responses
SPRO -> Material Management -> Purchasing-> Supplier Evaluation->Number Ranges for Supplier Evaluation->Define Number Ranges for Evaluation Scorecards
6.1 The appraiser has to login the app. Here the appraiser tin spot the instauration for questionnaire, deadline for response, fig of questions answered etc.
6.2 The appraiser tin reply the questions and upload attachment if necessary. They prevention their effect arsenic draught oregon taxable their responses. The presumption of the valuation effect tin beryllium caller (yet to respond by appraiser) oregon submitted (submitted by appraiser).
Monitor responses" successful supplier valuation refers to the ongoing process of actively tracking and reviewing a supplier's show against established cardinal show indicators (KPIs) implicit clip with the assistance of appraiser's effect to the supplier valuation questionnaire.
7.1 This exertion helps the class manager to reappraisal the responses from appraisers. The presumption tin beryllium Pending for Reply (appraiser is yet to measure the supplier) oregon Returned (appraiser has completed the supplier evaluation)
7.2 The wide people tin beryllium seen and the fig of questions answered tin besides beryllium seen. Individual responses to each conception and questions tin besides beryllium viewed by Category Manager done this app.
Based connected measurement 2's scoring and weighting criteria, SAP besides offers modular analytical apps to measure the supplier based connected Price, Quantity, Time etc.
- Supplier Evaluation by Price - With the Supplier Evaluation by Price app, you tin find the people of a fixed supplier successful an enactment based connected the variance successful the terms of ordered items and invoiced.
- Supplier Evaluation by Quantity - With the Supplier Evaluation by Quantity app, you tin find the quantity variance, which is based connected the variance betwixt the ordered quantity and the delivered quantity of items.
- Supplier Evaluation by Time - You tin usage this app to find the people of a fixed supplier successful an enactment based connected the quality successful clip betwixt the ordered day of items and delivered day of items.
8. Display Scorecards
Evaluation scorecards amusement the wide effect of a supplier valuation for 1 supplier. One scorecard exists for each supplier and valuation request.
This app helps buyers to collaborate with colleagues from their purchasing squad oregon from different departments connected supplier-related activities. As a portion of supplier valuation activity, a purchaser mightiness beryllium requested to implicit genitor enactment and sub tasks specified arsenic tract visitation, inspect the accumulation facility, cheque the wide feedback successful the marketplace astir the supplier etc. Such activities tin beryllium tracked and monitored via these applications.
Open the Manage Procurement Related Activities App. Customizing Settings is arsenic follows:
SPRO -> Material Management -> Purchasing-> Activity Management ->Number Ranges for Activities
SPRO -> Material Management -> Purchasing-> Activity Management ->Number Ranges for Tasks
SPRO -> Material Management -> Purchasing-> Activity Management ->Define Activity Types-> Enter Activity Type and Description
9.1 The Activity Manager is fixed entree to this application. Enter the Basic Data for activities specified Activity Name, Activity Type (from SPRO settings above), Purchasing Category, Person Responsible, Duration, Priority, Status, Activity Description etc.
9.2 Enter the supplier database for whom the enactment oregon task has to beryllium completed arsenic portion of supplier valuation process. Similarly, participate the buyer/employee who is liable for completing the genitor enactment and sub tasks.
9.3 Enter attachments if immoderate and participate the sub tasks to beryllium created nether the genitor activity.
9.4 Once the task is saved, acceptable the presumption arsenic taxable and send.
9.5 The Activity Manager tin presumption and show the presumption of the activities and tasks via this app.
9.6 The Activity/Task Participant tin update the advancement of their tasks and taxable the impervious via the Process Procurement Related Tasks App.
9.7 The Activity/Task Participant tin presumption the database of activities and tasks assigned to them on with the status.
9.8 Here the Activity/Task Participant tin participate the connection to the purchasing team, update the attachment impervious and prevention the task. Once the task is saved, the task tin beryllium submitted.
9.9 The Activity/Task Participant tin besides presumption the presumption of the tasks via the Manage Procurement Related Activities App.
9.10 The emails volition sent to Activity/Task Participant and Activity Manager.
Activity Manager Role: /SRMSMC/ACTIVITY_MANAGER
An Activity Manager in Supplier and Category Management tin bash the following:
- Create and alteration activities, and bespeak which suppliers are affected by the activities
- Create tasks for employees and specify a owed day for the tasks
- Request clarification for tasks
- Set the presumption of tasks to Completed
Activity/Task Participant Role: /SRMSMC/ACTIVITY_PARTICIPANT
An Activity Participant successful Supplier and Category Management tin bash the following:
- Work connected tasks by entering substance into the Communication field
- Depending connected the advancement made, prevention the task oregon taxable the task.
10.Supplier Classification
"Supplier classification" successful supplier valuation refers to the process of categorizing suppliers based connected factors similar their strategical importance, performance, hazard level, and walk volume, allowing a institution to prioritize and negociate relationships with antithetic supplier groups effectively.
10.1 Open the Display Suppliers Procurement App. Enter the Supplier Number.
10.2 Here, you tin spot the Activities and Evaluation History for the supplier.
10.3 Under the Classification Tab successful the app, the Buyer tin besides support the Strategic Importance, ABC presumption of the supplier, Spend Volume etc. The purchaser tin besides complaint supplier connected the ground of Risk, Labour Policy, Social and Environmental Responsibility for a circumstantial duration.
SAP Sources:
https://help.sap.com/doc/4928dc55e56ab61ae10000000a44538d/1610%20002/en-US/frameset.htm
