| Overview of vendor rating |  |
| If multiple purchase business partners are available for obtaining raw materials and supplies, you can pick and choose whom to give the business to. To make wise choices, having criteria to rate business partners and keep track of how they perform can aid in this process. The vendor rating procedure enables you to measure the performance of vendors based on a rating. The vendor rating functionality contains both objective criteria and subjective criteria that can be used to calculate the vendor’s rating. The objective criteria are ratings that are generated by ERP LN, since they only depend on present data and a weighting factor. The subjective criteria ratings depend on manually entered data. The overall vendor rating is calculated by ERP LN. Before you can calculate and view vendor ratings, purchase orders must have been entered and processed. Carrying out the vendor rating procedure results in ratings based on which you can decide whether or not to conduct transactions with a vendor. To set up vendor ratings Before you can use the vendor rating procedure, you must: Set the vendor rating parameters. Define objective scoring schemes. Define subjective criteria. Define subjective values. Define a classification scheme. For more information, refer to To set up vendor ratings. To calculate vendor ratings After orders are processed and questionnaires are compiled, you can run the Update Vendor Rating (tdpur8850m000) session to calculate the vendor ratings. In the Update Vendor Rating (tdpur8850m000) session, you can do a full update or a net update of the vendor rating. For more information, refer to To calculate vendor ratings. To delete vendor ratings To remove vendor rating data, use the Delete Historical Ratings (tdpur8851m000). ERP LN deletes all vendor rating data up to and including the entered year or the period combination. The result is that all vendor rating data goes back to the same year or the same period combination. Related topics To set up vendor ratings To calculate vendor ratings |