This chapter covers the following topics:
Organizations are constantly seeking high performance from their suppliers so they can source a bigger fraction of their requirements from cost effective, responsive, well performing suppliers while reducing business with under-performers or retiring them completely. Supplier Lifecycle management lets you evaluate supplier performance and gather key performance metrics such as supplier responsiveness, technical performance, quality control performance, and cost performance. Supplier Performance Evaluation is an internal process, where you invite experts within various departments to provide evaluation of suppliers that they deal with.
S. No. | Supplier Management Administrator Actions | Evaluator Actions | Comments |
1 |
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Evaluation team is notified | |
2 |
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Automatic scoring set up for each requirement is applied | |
3 | Reviews evaluator responses and close the RFI. | Supplier Management Administrator can
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4 | Optionally, provide score for any requirements setup with manual scoring. | ||
5 | Select Manage Scoring Teams in the Action dropdown. Click Lock Scoring to close further analysis and evaluation. | Lock scoring action calculates the overall score for supplier(s) in the RFI. | |
6 | Completes the RFI | On Complete, mapped responses and scores are synchronized with profile attributes based on RFI mappings. Evaluation responses and scores can be hidden from suppliers. See Step 6: Setting Up Profile Access in Setting Up Supplier Profile. |
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7 | Searches Supplier Profile for gathered information using basic or advanced Search | Advanced search is an easy way of finding supplier information |
All evaluation RFIs are also saved in the supplier master and are accessible to the authorized internal users from the Supplier's profile for reference.
Supplier Management Administrator can set up a Supplier Performance Evaluation RFI Template, or Reusable Requirements List or Reusable Attributes List, to be reused in RFI documents for periodic evaluations. Steps required to set up the RFI Template, Reusable Requirements List and Reusable Attributes List are the same as explained in Implementing Supplier Registration and Qualification Management chapter. However, it is important to highlight the differences:
RFI Template is mandatory in case of the registration flow, whereas it is optional in case of Supplier Performance Management. A Supplier Management User may directly create a RFI without any template.
The RFI is internal and therefore the added suppliers in the RFI are neither notified nor can access this RFI. Suppliers are added only to indicate to evaluation team members which suppliers they must evaluate.
Responses are synchronized with supplier profile as soon as the RFI is completed. There is no need for approval of suppliers.
Another important aspect to note is the difference in the predefined Negotiation style. If you customize the Negotiation Style for Supplier Performance Evaluation, then make sure that you understand the impact of each control.
Leverage Supplier master data and user defined profile attributes metadata to create custom OBIA reports for supplier performance management. You can also leverage the new OA personalization capability to create an OBIEE rich container region to display OBIA supplier performance reports from within Oracle E-Business Suite Supplier Management application pages.
Consider the following requirements set up to gather internal evaluations:
Requirements for supplier performance evaluation
Only sections are shown, but assume that each section also contains requirements.
A multi-row supplier profile UDA is set up to capture evaluator responses:
Attribute Group | Attributes (Data Type) | Business Entity | Associated with |
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Supplier Performance Evaluation |
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Supplier Party | Common |
To map requirements to the multi-row UDA, define header level mappings. Header level mappings provide a unique identifier to each row of the UDA. Also, map each requirement to an attribute.
RFx | Supplier Profile Data Level | Supplier Profile Association level | Supplier Profile Attribute Group | Supplier Profile Attribute |
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RFI Number | Supplier Party | Common | Supplier Performance Evaluation | RFI Number |
Evaluator Name | Supplier Party | Common | Supplier Performance Evaluation | Evaluator |
Evaluation Date | Supplier Party | Common | Supplier Performance Evaluation | Evaluation Date |
To save section scores and total score:
RFx Section Scores | Supplier Profile Data Level | Supplier Profile Association level | Supplier Profile Attribute Group | Supplier Profile Attribute |
---|---|---|---|---|
Total Score | Supplier Party | Common | Supplier Performance Evaluation | Supplier Performance Score |
Supplier Responsiveness | Supplier Party | Common | Supplier Performance Evaluation | Responsiveness Performance Score |
Quality Performance | Supplier Party | Common | Supplier Performance Evaluation | Quality Performance Score |
Schedule/Delivery Performance | Supplier Party | Common | Supplier Performance Evaluation | Delivery Performance Score |
Technical Performance | Supplier Party | Common | Supplier Performance Evaluation | Technical Performance Score |
Price-Cost Performance | Supplier Party | Common | Supplier Performance Evaluation | Price Performance Score |
Relationship Management | Supplier Party | Common | Supplier Performance Evaluation | Management Performance Score |
RFx Section | RFx Requirement | RFx Response | Supplier Profile Data Level | Supplier Profile Association level | Supplier Profile Attribute Group | Supplier Profile Attribute |
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Supplier Responsiveness | How is the overall supplier responsiveness? | Value | Supplier Party | Common | Supplier Performance Evaluation | Responsiveness Performance |
Quality Performance | Overall, how do you rate this supplier on their quality performance? | Value | Supplier Party | Common | Supplier Performance Evaluation | Quality Performance |
Schedule/ Delivery Performance | Overall, how do you rate this supplier on schedule and delivery? | Value | Supplier Party | Common | Supplier Performance Evaluation | Delivery Performance |
Technical Performance | Overall, how do you rate the Technical capability of this supplier? | Value | Supplier Party | Common | Supplier Performance Evaluation | Technical Performance |
Price-Cost Performance | Overall, how do you rate this supplier on their price and cost performance? | Value | Supplier Party | Common | Supplier Performance Evaluation | Price Performance |
Relationship Management | Overall, how do you rate the management quality of this supplier? | Value | Supplier Party | Common | Supplier Performance Evaluation | Management Performance |
Overall Supplier Performance | How do you rate the overall performance of this supplier? | Value | Supplier Party | Common | Supplier Performance Evaluation | Overall Performance |
On completing the RFI, the application synchronizes evaluator responses with the associated supplier profile UDA.
Supplier Profile showing Performance Evaluation UDA