How a vendor scorecard measures vendor performance to keep the supply chain system effective and dynamic

In order to keep a supply chain working smoothly, most companies implement a vendor management software for better efficiency and productivity. Procuring professionals have to manage their suppliers to keep the supply chain going sturdy without hiccups. The quality and performance of a supplier is an important factor for vendor management and this is why a supplier scorecard or a vendor scorecard is a valuable document as it allows managers to asses or measure performance and effectiveness of vendor or supplier over a period of time. It is the vendor scorecard module in the vendor management system that enables supply chain managers to manage, track and measure a vendor’s performance over time. This scorecard breaks down the performance into factors and categorizes them so as to quantify it. It includes metrics to grade product quality, cost and vendor delivery. The system gives business some unique advantages in supplier management.

1. A vendor scorecard helps to ensure the maintenance of a beneficial relationship with vendors
2. The scorecard effectively evaluates vendor performance to rank them.
3. Easiest way for ranking the vendors based on their quality, on time delivery, vendor response, price and material rejections
4. Maximum score is fixed and actual score will be awarded based on their performance
5. Paperless system, less time consumption and energy on consolidating all details, making one-to-one comparison easier and in evaluating the score.

Why Vendor Scorecard module is vital in vendor management system

Vendor Management Portal helps buyers to evaluate the performance of the vendors by various categories like cost, delivery and quality. It helps to generate Vendor Performance Rating Report and also by the Provision of Rank (A, B, C and D) and ratings. The system generates reports that can be downloaded and helps the easy tracking of delay in delivery. Users can export CSV file to conveniently transfer data from the portal to other stakeholders. Details can be filtered for specific months to identify trends and issues. In short, the suppliers’ performance has direct impact on your organisation and poor performance can cause damage. If you select the wrong vendor for the job, it can lead to loss and unnecessary changes later. In manufacturing sector, it has a direct impact of the quality of the products being produced. By implementing a vendor management software, one like Vendora, your supplier onboarding and management processes will get better organized. Easily meet challenges by installing this useful cloud hosted vendor scorecard module / application to streamline efficiently vendor workflow and procurement processes. Derive better productivity to increase your business turnover. Please contact us for your requirements. More information is available on our website.