Vendor Performance Management
Tracking and improving vendor performance is essential for supply chain excellence. This guide covers comprehensive vendor performance management in Angage ERP.
Understanding Vendor Performance
Why Track Performance?
- Risk Mitigation: Identify problematic vendors early
- Cost Optimization: Negotiate better terms with data
- Quality Improvement: Drive continuous improvement
- Strategic Decisions: Make informed sourcing choices
- Relationship Building: Recognize and reward excellence
Key Performance Areas
Delivery Performance
- On-time delivery rate
- Lead time accuracy
- Order fill rate
- Delivery documentation
- Carrier performance
Quality Metrics
- First-pass quality rate
- Defect rates
- Return/rejection rate
- Corrective actions
- Certification compliance
Commercial Performance
- Price competitiveness
- Invoice accuracy
- Payment term compliance
- Cost reduction initiatives
- Total cost of ownership
Service & Responsiveness
- Quote response time
- Issue resolution speed
- Communication quality
- Technical support
- Innovation contribution
Setting Up Performance Tracking
1. Define KPIs
Navigate to Purchase → Performance → KPI Setup:
Standard Metrics
- On-Time Delivery: Orders delivered by promised date
- Quality Rate: Items passing inspection
- Price Variance: Actual vs market price
- Response Time: Average quote turnaround
- Issue Resolution: Time to resolve problems
Custom Metrics
Create specific KPIs:
- Click New KPI
- Define:
- Name and description
- Calculation method
- Data source
- Target values
- Weight/importance
2. Configure Scorecards
Scorecard Template
- Go to Scorecard Templates
- Create template:
- Select relevant KPIs
- Set weights (total 100%)
- Define score ranges
- Set review frequency
- Apply to vendor categories
Scoring Methodology
- Weighted Average: Balance multiple metrics
- Category Scores: Group related KPIs
- Overall Rating: Consolidated performance
- Trend Analysis: Period-over-period changes
How-To Guides
How to Track Delivery Performance
Automatic Tracking
System captures:
- PO promised date
- Actual receipt date
- Quantity ordered vs received
- Advance shipment notices
- Carrier tracking
Manual Updates
For exceptions:
- Open PO/Receipt
- Update delivery notes
- Document reasons:
- Weather delays
- Carrier issues
- Vendor problems
- Force majeure
- Save for reporting
How to Monitor Quality
Receipt Inspection
- Quality data captured at receipt
- Inspection results:
- Pass
- Pass with deviation
- Fail
- Link to vendor record
- Auto-update metrics
Quality Trends
Track patterns:
- Defect types
- Frequency
- Severity
- Root causes
- Improvements
How to Conduct Performance Reviews
Quarterly Reviews
- Generate scorecard
- Schedule meeting
- Review agenda:
- Performance summary
- Specific incidents
- Improvement areas
- Action plans
- Next steps
Annual Business Reviews
Comprehensive evaluation:
- Year-over-year comparison
- Strategic alignment
- Relationship assessment
- Contract negotiations
- Future planning
How to Create Improvement Plans
When performance is below target:
Identify Issues
- Analyze root causes
- Review patterns
- Check systemic problems
Develop Action Plan
- Specific improvements
- Timeline
- Responsibilities
- Success metrics
Monitor Progress
- Regular check-ins
- Track improvements
- Adjust as needed
- Document results
How to Reward Excellence
For top performers:
- Preferred vendor status
- Increased business share
- Longer contracts
- Better payment terms
- Recognition awards
- Reference opportunities
Advanced Features
Predictive Analytics
Risk Scoring
AI-powered analysis:
- Financial health indicators
- Performance trend analysis
- Market condition impact
- Early warning signals
- Risk mitigation suggestions
Forecasting
Predict future performance:
- Seasonal patterns
- Capacity constraints
- Market dynamics
- Historical trends
- External factors
Benchmarking
Internal Benchmarking
Compare vendors:
- Within categories
- Across regions
- By spend volume
- Performance tiers
External Benchmarking
Industry comparisons:
- Market standards
- Best-in-class metrics
- Industry averages
- Peer performance
Supplier Development
Capability Building
Programs for improvement:
- Training programs
- Process improvement
- Technology adoption
- Quality systems
- Certification support
Collaboration Tools
- Performance dashboards
- Joint improvement projects
- Innovation workshops
- Knowledge sharing
- Best practice exchange
Integration Features
Real-Time Data
Automatic updates from:
- ERP transactions
- Quality systems
- Delivery tracking
- Financial systems
- External sources
Vendor Portal
Self-service access:
- Performance dashboards
- Scorecards
- Improvement plans
- Training resources
- Feedback tools
Best Practices
Objective Measurement
- Use system data
- Avoid subjective scoring
- Document exceptions
- Apply consistently
- Regular calibration
Clear Communication
- Share expectations
- Provide regular feedback
- Explain calculations
- Discuss improvements
- Celebrate success
Continuous Improvement
- Regular review cycles
- Update metrics
- Evolve standards
- Share best practices
- Drive innovation
Strategic Alignment
- Link to business goals
- Category strategies
- Risk management
- Cost objectives
- Quality standards
Configuration
Performance Settings
Navigate to Settings → Purchase → Performance:
- Review Frequency: Monthly/Quarterly
- Score Calculation: Real-time/Batch
- Data Retention: Historical periods
- Alert Thresholds: Performance triggers
- Portal Access: Vendor visibility
Metric Configuration
For each KPI:
- Calculation formula
- Data sources
- Update frequency
- Target ranges
- Alert rules
Report Templates
Customize outputs:
- Scorecard layouts
- Graph types
- Comparison views
- Export formats
- Distribution lists
Reports & Analytics
Standard Reports
Vendor Scorecards
- Individual vendor performance
- Period comparisons
- KPI breakdown
- Trend analysis
- Action items
Category Analysis
- Performance by category
- Vendor rankings
- Benchmark comparisons
- Improvement opportunities
- Risk assessment
Executive Dashboards
- Top/bottom performers
- Overall trends
- Risk indicators
- Cost impact
- Strategic metrics
Custom Analytics
- Ad-hoc analysis
- Data exploration
- Predictive models
- What-if scenarios
- Deep-dive investigations
Troubleshooting
Common Issues
Missing performance data
- Check transaction links
- Verify data capture
- Review calculation rules
- Update manually if needed
Incorrect scores
- Validate formulas
- Check data quality
- Review period settings
- Recalculate scores
Vendor disputes
- Review calculations
- Provide documentation
- Check data accuracy
- Involve management
System performance
- Optimize calculations
- Schedule batch updates
- Archive old data
- Review configuration
INFO
This completes the Purchase & Procurement module documentation. The systematic approach to vendor performance ensures optimal supplier relationships and continuous improvement in your supply chain.