6.5 VENDOR EVALUATION 6.5.

1 Evaluation Criteria Vendor evaluation is used to rate the performance of Vendor on various criteria in SAP.

1. Price 2. Quality 3. Delivery 4. Service

Weightage - Criteria wise.

Main Criteria
Quality(W1)

Sub Criteria
Quantity (Q1) Quantity accepted

Weightage%
accepted 65%

with deviations(Q2) Quantity rejected(Q3) Total supplied(Q) Delivery(W2) Quantity to promised 15% within quantity

deliver

stipulated time (D) Actual qty supplied within stipulated

time (D1) Promised time for delivery full

consignment (T) Actual delivery time for full consignment (T1)

Service(W3)

Cooperativeness and 10% readiness to help in emergencies(20) S1

Readiness to replace rejected material(20) S2

Providing supporting document time(20) S3 in

Promptness reply(20) S4

in

Avoiding recurrence of defects/complaints(2 0) S5

EHS Env., Helth, Safety(W4)

Compliance of no 10% child labours & no forced E1 labours(20)

Compliance

of

health

and

safety

system(20) E2 Freedom association disciplinary practices(20) E3 Working hours & remuneration(20) E4 Management system(20) E5 of &

Overall Score

Maximum (W1xQR + W2xDR + W3xSR + W4xEHSR) / 100

100%

Material wise break up of Overall Score The overall score of the vendor will depend upon the broad category of material supplied by the vendor. The weightages for the overall score for the different class of material shall be as tabled below.

Material
Capital goods Spares Raw Materials General stores Fuels

Quality
30 20 30 10 20

Delivery
40 30 30 40 30

Service
20 30 30 40 40

EHS
10 20 10 10 0

. Calculating overall score

The SAP system drives the overall score from the scores of various main criteria, taking the weightage factors assigned to each main criterion into account. Example: The table below displays the scores for a vendor in raw materials category and their weighting factors.

Main Criteria Quality Delivery Service

Score 70 80 20

Weightage% 65 15 10

Criteria wise point 21 32 16

EHS Total

10

10 100

7 76

Classifications of Vendors
Vendor Evaluation Score (points)
100 Above 90 60 to 90 Less than 60

Classification of Vendor
Excellent Very good Good Unsatisfactory

Remarks

Should keep it up Could improve To be delisted