What is Vendor Performance?
Within an organization, there can be hundreds of vendors to choose from when creating a purchase order. But how can one ensure they are picking the best vendor to match their needs? And if a vendor is falling short on performance, what’s the easiest way to tell? In response, we introduce Vendor Performance.
Before We Start: What Exactly Makes Up Vendor Performance?
To capture how a vendor is performing, we have two sets of scores:
Procurify Score: This score is compiled from data throughout Procurify (PO, Receive, Catalog Items) and results in a score out of 10.
Team Score: This score is derived from reviews compiled within the communication between team members, resulting in a rating out of 5 stars.
How Scoring is calculated
How Scoring is calculated
Procurify Scoring: Out of 10
Every vendor in your system receives a score based on your past purchase orders with them. Scores are calculated based on several Key Performance Indicators (KPIs):
Delivery Speed: Measured by comparing Reference Time (average 'Promised Date' from all POs for this vendor) and Actual Time (PO Created Date vs. Item Received).
Delivered Quality: Evaluated by the pass or fail status of received items.
Received Accuracy: Calculated by comparing purchased item quantity with received items.
Cost Accuracy: Assessed by comparing purchased item prices with catalog item prices (if items are not in the catalog, Procurify cannot provide a score).
The score breakdown includes 4 KPIs:Speed - Total time taken until a PO is closed
Quality - Do all items get shipped once? Or does it need multiple shipments? (ie. number of failed items)
Accuracy - Number of ordered items vs. received item
Accuracy - the difference between a catalog item’s original price and its price in a PO
Each KPI has a score out of 10 as well.
We use three different colors to indicate the status of the vendors’ performance:
Excellent: When the vendor has a score above 8.
Good: When the vendor has a score between 6 to 8.
Needs Work: When the vendor has a score below 6.
How to Set Up Vendor Performance
How to Set Up Vendor Performance
You will need access to the Settings page to complete this task.
Visit the Settings Page.
Click on Customize vendor performance metrics under the Customizations section
Once you're on the Vendor Performance Metrics settings page, turn the toggle switch to ‘On’.
(Users with permission to the Settings page will have the option to turn this off whenever they want.)
By turning Vendor Performance off: it means that scores will no longer be viewable throughout Procurify.
After turning on the toggle switch, the Key Performance Indicators (KPIs) will be available for you to customize their importance. Use the sliders to adjust each KPI’s percentage.
When you are ready, click on ‘Save Changes’ and Procurify will start calculating the scores for your vendors.
This might take several minutes to complete. We’ll be running the calculation in the background and will notify you through a pop-up notification on the top right corner when Vendor Performance is ready to use.
While we are calculating the score, the Vendor Performance settings page will be temporarily disabled until it’s done compiling the data it needs.
Once Procurify has completed the calculations you will be able to see the vendor performance metrics.
How to view Vendor performance scores
How to view Vendor performance scores
After compiling all the data of your vendors, you’ll be able to see their scores.
Procure - Vendor Management
Click the Procure tab on the left panel.
Select Vendors.
Here you will see all your vendors and their vendor performance scores.
To see more details, select a vendor and it will show their detailed scores.
