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