Free course · Procurement + scorecards

Supplier Relationship & Vendor Evaluation

Vendor onboarding, supplier scorecards, quality-delivery-price ratings, contract management, supplier development and risk mitigation.

What you must take away

  • Rate every key vendor on quality, delivery, price and service.
  • Onboard vendors with documents, compliance checks and a clean vendor master.
  • Dual-source critical items to reduce risk.
  • Use corrective action requests before replacing a supplier.

In the SAP process

  1. Check the vendor master (address, bank, purchasing data).
  2. Pull PO history and goods receipts for the quarter.
  3. Calculate on-time delivery % and rejection %.
  4. Share the scorecard and agree actions.

Case study

Turning around a late supplier

Setting. A packaging supplier for a manufacturing plant.

Problem. Frequent late deliveries caused line stoppages.

How it was investigated

  • Compared PO dates with GR dates.
  • Found late deliveries clustered at month-end.
  • Met the supplier to review capacity.

What was changed

  • Shared a monthly scorecard.
  • Agreed a rolling 4-week forecast with the supplier.

Outcome. On-time delivery improved and line stoppages stopped.

Lesson: Measure, share and plan together before switching suppliers.

Illustrative composite of common shop-floor situations — no client names or confidential figures.

Practical template

Supplier scorecard

Rate vendor performance every month.

VendorOn-time %Rejection %Price variance %Score
ABC Packaging921.5+284

How to use it

  • Fill data from PO and GR history.
  • Weight quality, delivery and price.
  • Review scores with each vendor monthly.

Quick quiz — check your understanding

The quiz questions stay hidden until you have spent at least one minute reading this lesson — answer from what you learned, not from clues in the options.

60s