Defining Supplier Performance Targets and Tolerances

To define supplier performance targets and tolerance levels, use the Supplier Performance Setup component (WV_PE_METRIC_SETUP). To supplier performance targets and tolerance levels, use the Supplier Performance Supplier component (WV_PE_METRIC_VNDR).

You can define how the system derives and displays supplier performance metrics by setting performance targets and tolerances.

Page Name

Definition Name

Usage

Supplier Performance Setup Page

WV_PE_METRIC_SETUP

Define system targets and tolerances for the Purchasing reporting entity.

Supplier Performance Supplier Page

WV_PE_METRIC_VNDR

Define supplier-specific targets and tolerances for a SetID.

This section discusses the appearance of the charts that display supplier metrics.

Graph Colors

The target and tolerance percentages that you enter on the metrics setup pages determine certain performance graph bar colors. Values that are:

  • Equal to or greater than the target percentage are green (acceptable).

  • Less than the target percentage but greater than the target percentage minus the tolerance percentage are yellow (warning).

  • Less than this difference between the target percentage and the tolerance percentage are red (unacceptable).

Performance graph bars can also represent particular metric values; for example, the percentage of early shipments is expressed in blue on the On-Time Performance graph.

Use PeopleTools 2D Bar chart type.

See PeopleTools PeopleBook: PeopleCode Language Reference

Metrics

The system displays metrics against a specific target and tolerance for a particular supplier within a reporting entity if you define targets and tolerances on the Supplier Performance Supplier page. Otherwise, the system uses the general system-level targets and tolerances, which you define on the Supplier Performance Setup page.

Periods

The data (percentages) that appear are an aggregation of the items and units of measure for which receipts have been made. For each period shown, the user must navigate to view the underlying data that supports the chart.

The number of periods that appear is determined at the system level. The periods that appear in the performance detail pages (and their associated supplier pagelets) are based on the date ranges that the calendar ID that is associated with the reporting entity ID in PeopleSoft Purchasing defines.

See Define Procurement Controls Page.

Use the Supplier Performance Setup page (WV_PE_METRIC_SETUP) to define system targets and tolerances for the Purchasing reporting entity.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Purchasing > Supplier Performance Setup

To set up system targets and tolerances for the reporting entity:

  1. Determine the reporting entity:

    Field or Control

    Description

    Reporting Entity ID

    Select to establish system targets and tolerances for this reporting entity. Define reporting entities on the Define Procurement Controls page in PeopleSoft Purchasing.

    See Define Procurement Controls Page.

  2. Establish performance targets and tolerances (these metrics are expressed in percentages):

    Field or Control

    Description

    On-Time Performance Target

    The optimal percentage of on-time deliveries (quantity or receipts) for the given period.

    See View Supplier Shipment Performance - On-Time Performance Page.

    Quantity Performance Target

    The optimal percentage of correct shipments in terms of quantity received versus scheduled quantity for the given period.

    See View Supplier Shipment Performance - Quantity Performance Page.

    Quality Performance Target

    The optimal percentage of receipts that are received without being rejected due to quality for the given period.

    See View Supplier Shipment Performance - Quality Performance page.

    PO/Receipt Qty Perf. Target (purchase order/receipt quantity performance target)

    The optimal percentage of ordered versus received quantities for the given period.

    See View Supplier Shipment Performance - PO/Receipt Quantity Performance Page.

  3. Set the chart and grid settings:

    Field or Control

    Description

    Number of Periods to Display

    The number of periods that you want to appear in the graphical charts. The calendar definition determines a period's length.

    Max Rows to Return (maximum rows to return)

    The maximum number of rows that the system retrieves when the supplier selects detail for a period. This limits how much data the system retrieves to conserve web server resources.

  4. Select early and late metric display settings.

    You can calculate early and late metrics in one of two ways:

    Field or Control

    Description

    Early/Late Metrics by Receipts

    Bases the metric on the total number of receipts in relation to the schedule date. You may prefer this method when you want to measure timing of shipments regardless of quantity.

    Early/Late Metrics by Quantity

    Bases the metric on the aggregated receipt quantity in relation to the schedule date. You may prefer this method when you typically have several receipts for a given PO schedule line (versus the metric based on receipt count only).

    See Understanding Supplier Performance Metrics.

Use the Supplier Performance Supplier page (WV_PE_METRIC_VNDR) to define supplier-specific targets and tolerances for a SetID.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Purchasing > Define Performance Targets

This page is nearly identical to the Supplier Performance Setup page with the exception that you are defining values for a specific supplier in a SetID rather than system-wide reporting entity values.