Vendor Evaluation

[Former Member]

Hi! everyone,

Need your assistance.

How do you set up <b>automatic</b> vendor evaluation in R/3(MM)?

How do you get this evaluated data to BW for reporting purposes?Basically,any config steps/guide to integrate MM(auto evaluation)-BW?

If you have any leads,any config docs or even your opinions,please share.

Full points will be awarded!!

Please mail me any config docs at srmhelp@yahoo.com

Thanks

Trey

ps:-Just so you know,i already have the 'vendor evaluation config guide' from the market place.

[Former Member]

Hi,

Check on it:-

http://wiki.sdn.sap.com/wiki/display/ERPSCM/VendorEvaluationin+MM-PUR

http://wiki.sdn.sap.com/wiki/display/ERPSCM/KnowledgePaperVendor+Evaluation

pherasath

[Former Member]

Hi,

Vendor Evaluation for Purchasing

Define the weighting keys in SM30 - V_T147J.

Weighting keys 01 and 02 are defined in the standard system. You combine the following

weighting shares for the standard main criteria:

Main criterion Key 01 Key 02

Price 1 5

Quality 1 5

Delivery 1 2

Gen. service/support 1 1

Ext. service provision 1 2

Define the criteria in SM30 - V_T147G - Double click on the line items

In this step, you define the criteria by which the system computes scores for vendors and

specify whether the scores for the subcriteria are computed manually, semi-automatically, or

automatically.

You can also store your own methods of computation for the scores for subcriteria in the

form of user exits. The enhancement MM06L001 is available for this purpose.

Define the scope of list in SM30 - V_T147M - Double click on the line items

Define Purchasing Organization data for vendor evaluations in transaction OMGL.

An example :-

How the system calculates the score for the automatic subcriteria

"On-Time Delivery Performance"?

The system uses the statistics-relevant delivery date in the purchase order

(Items -> Delivery Schedule) and the goods receipt date to calculate date variances.

You use the statistics-relevant delivery date, for example, if you know that the vendor

will not deliver the material as scheduled on September 15 but on September 30. Enter the

delivery date as September 30, but enter the statistics-relevant delivery date as

September 15.

In calculating the score for on-time delivery performance, the system will then not use

the actual delivery date, but the statistics-relevant delivery date. This has a negative

effect on the score for this goods receipt.

However, materials planning and control uses the realistic delivery date (September 30)

which the vendor will actually adhere to.

The system considers only goods receipts against purchase orders and scheduling agreements

into stores and the release of GR blocked stock into stores. In the standard system, these

are the movement types 101 and 105.

Minimum Delivery Percentage - OMGL in the On-time delivery section

If you do not want a vendor to receive a very good score if he delivered the goods on time,

but did not deliver the required quantity, you can maintain a minimum delivery percentage

in Customizing.

Assume you set the Min. del. perc. parameter to 60% and the vendor delivers the goods on

time, but only 55% of the ordered quantity. Although the goods receipt is punctual, it is

not included in the calculation of the vendoru2019s score for on-time delivery performance. So

that the non-scoring of the on-time delivery performance criterion in this case does not

bring an unfair advantage in comparison with a poor score, the vendor is awarded a low score

for quantity reliability. On-time delivery performance is thus always to be seen in

conjunction with quantity reliability.

Standardizing Delivery Date Variance - OMGL in the On-time delivery section

To rate delivery date variances in days, maintain the Std.del.time var. parameter.

If you assign a lower standard value, this means that relatively low date variances produce

high percentage variances. If you set a higher standard value, this results in a relatively

low percentage variance:

The Std.del.time var. parameter has the value 20. The goods receipt took place on Nov. 27;

the statistical delivery date was Nov. 15. There is thus a difference of 12 days.

The system calculates the percentage variance as follows:

12 / 20 x 100 = 60

If the Std.del.time var. parameter had the value 60, the variance would be 20%

(12 / 60 x 100 = 20).

If you do not maintain this parameter, the system calculates the delivery time variance via

the firm zone in the case of scheduling agreements, and via the order date and the

statistics-relevant delivery date in the case of purchase orders.

pherasath

[Former Member]

Hi,

Please look at:

http://help.sap.com/saphelp_nw2004s/helpdata/en/f0/3abab39e044d41b8a553136d5ff2f4/frameset.htm

Regards,

Marcin

[Former Member]

Thanks...but it does not throw light on <b>MM-BW</b> integration or the configuration that one has to do for <b>automatic evaluation in MM</b>.

Anybody?

Trey

[Former Member]

Hi Trey,

in MM automatic evaluation is only possible for certain quantitative KPI.

Follow the settings in ECC SPRO under Material Management - Purchasing - Vendor Evaluation.

Via criteria and weights the definition is done. Automatic

evaluation relies on countable elements, like number of received items and dates.

For the BW integration there is standard Business Content available for MM

supporting the integration of the evaluation into reporting. Usually that does not fit

as well as the basic evaluation MM offers. For the reporting, then the standard

data sources needs to be enhanced and a usual integration into BW needs to be

done.

There are a lot of pain points with the standard eval in MM and the related reporting

why most companies have their own evaluation / custom evaluation.

Besides the Supplier Relationship Group also the group "ERP - Logistics Materials Management (MM)"

could help you.

Thanks,

Claudia

[Former Member]

Hi Claudia,

Thanks for the reply.It has helped me immensely...but a few related doubts.

->In the Vendor Evaluation guide,there is a list of automatic criteria(from MM) which it says is available(delivery(all four subcriteria)) and quality/timeliness of service).

But Quality/timeliness of service are semi-automatic in MM.In MM,only three criterias(price,quality,delivery)are automatic.

<u>I am wondering why in the vendor evaluation guide have they mentioned qlty/timeliness of service as available for automatic evaluation?Also,the guide does not mention anything on the 'price' or 'quality' automatic criterias either?</u>

<u>Does 'automatic evaluation' from MM to BW support the above mentioned criterias(price and quality)?</u>

This has confused me no end.

--Do we load/replicate the master data(vendor,material and info records) from SRM and R/3(MM) to BW?

<u>SRM to BW..which master data;and MM to BW..which master data?</u>

Please share your knowledge.Full points are on the way.:-)

Trey

[Former Member]

Hi

Please read this as well ->

<u>Vendor Evaluation</u>

http://help.sap.com/saphelp_srm50/helpdata/en/be/09283486c9ac42a20156c345f2a3fc/frameset.htm

<u>Evaluating Vendors and Monitoring in SRM</u>

http://help.sap.com/saphelp_srm50/helpdata/en/70/d394418ecead5fe10000000a1550b0/frameset.htm

<u>BW Vendor reports</u>

http://help.sap.com/saphelp_srm50/helpdata/en/7f/bd4e3cbbb9ee46e10000000a11402f/frameset.htm

http://help.sap.com/saphelp_srm50/helpdata/en/42/e80068887a3ee6e10000000a1553f7/frameset.htm

<u>Data Replication</u>

http://help.sap.com/saphelp_srm50/helpdata/en/70/00c73a584611d6b21700508b5d5211/frameset.htm

<u>Replication of Materials from R/3 Backend Systems</u>

http://help.sap.com/saphelp_srm50/helpdata/en/5e/88ef3bc8821d0de10000000a114084/frameset.htm

<u>Configuration of BW for use with Enterprise Buyer (SRM System)</u>

http://help.sap.com/saphelp_srm50/helpdata/en/7e/1d2b3df1e5cc40e10000000a114084/frameset.htm

<u>Business Customizing</u>

http://help.sap.com/saphelp_srm50/helpdata/en/70/00c73e584611d6b21700508b5d5211/frameset.htm

<u>Master Data Synchronization in mySAP ERP</u>

http://help.sap.com/saphelp_srm50/helpdata/en/42/d3b671ba67136fe10000000a1553f7/frameset.htm

<u>Managing External Business Partners</u>

http://help.sap.com/saphelp_srm50/helpdata/en/56/54f137a5e6740ae10000009b38f8cf/frameset.htm

<u>General Settings</u>

http://help.sap.com/saphelp_srm50/helpdata/en/a8/14ae5b577a11d6b21500508b5d5211/frameset.htm

<u>Documentation Landscape for SAP Solutions and Business Scenarios</u>

http://help.sap.com/saphelp_srm50/helpdata/en/00/e6423cd7c04e71e10000000a114084/frameset.htm

Regards

- Atul

[Former Member]

Thanks,Atul.I had gone through all of them earlier.But these doubts that i have...are very specific.

Claudia,

Because you have experience in Vendor Evaluation,could you please...pleaseeee share your pointers on my questions?

Appreicate it so much!

Thank you!

Trey

[Former Member]

Hi Tray,

the vendor evaluation guide is written from SRM perspective and assumes that the

corresponding SRM Scenarios are used. Quality/timeliness of service are

mentioned in the guide as these KPIs are referring to the service procurement

scenario available within SRM. They are not available via MM, like to mentioned.

When you set up the vendor evaluation in MM, the automatic criteria a supported

and extracted into BW (price and quality). The beauty of the new vendor evalution

is, that the evaluation in MM as well SRM is covered. SRM offeres the evaluation

based on the questionnaires, which then can be uploaded into BW and combined

with all the data extracted from MM as well.

For the master data it depends on the implemented scenarios and your landscape.

Usually the R/3 system is the leading system for vendors, materials, why they are

loaded from there into BW. SRM master data are only needed, when you have

unique data in SRM, which have not been replicated from somewhere. Normally

that is not the case.

The standard available in MM as well SRM is normally not covering the needs of

bigger, esp. global companies, why they all have their own evaluation system. In

my last project we combined the standard (the automatic criteria) with additional

custom criteria defined in MM and prepared in BW. There we also added the

questionnaire data collected from SRM and enhance the information with the

calcuation needed. Vendor evaluation is going to be custom job.

Thanks,

Claudia

[Former Member]

Hi Trey/Claudia Michaels ,

I hope you have solved the problem of doing full automatic vendor evaluation in R/3 and with the enhancement you were able to fetch the data into BW along with the questionnaire data from SRM.

It would be a great help if you can help me also understanding how did u do this. Which data sources you have used in R/3 and in SRM. Which cube you have used in BW.

Kindly share all the details I am in similar position like you were some time back.

Cheers,

Sheetika