How do you rate SAP

The more important the procurement of certain materials or services is to your business, the more crucial it is to select the right supplier. In SAP Purchasing (MM-PUR module), the so-called supplier assessment is available for analyzing cooperation with suppliers. This enables you to assess what are known as hard and soft facts about the supplier from the data in the SAP system and make a classification. But before you get started, there are some basic considerations to be made.

Supplier evaluation - who do you want to evaluate?

You may be working with a large number of suppliers. Especially if you also include suppliers who do not provide core products or services. This includes, for example, office supplies, work clothes, etc. So a preliminary consideration is: which of my suppliers would I like to evaluate? You probably also have critical, important and less important services in procurement. The supplier turnover and thus the proportion of your purchasing expenses may also be important. In order for a supplier evaluation to bring meaningful added value, the scope of the evaluation with a view to the supplier quantity is an important decision. Not least because the assessment process naturally takes time. The more suppliers you want to assess, the more time is required for good quality and comparability.

What do you want to judge?

Once the supplier selection has been made, the next important consideration is the supplier assessment criteria. A distinction is made in SAP between hard and soft facts:

  • Hard facts are objectively measurable KPIs. Ideally, these can be determined automatically from the system data. This includes, for example, adherence to deadlines, i.e. adherence to delivery dates, or adherence to quantities from order to delivery quantity. The SAP standard provides ready-made determinations for some criteria on which you can base your assessment.
  • Soft facts are criteria that you have to assess manually. A popular example of such a soft fact is the availability of the supplier for queries or response times in general. These criteria depend very much on what is important to you about your supplier and your cooperation. As a company, do you attach great importance to sustainability and environmental awareness? Then this can be a suitable criterion that you also use for evaluation by your suppliers.

The selection of criteria is decisive for the later comparability of the assessments of different suppliers. As a computer scientist, I tend to use automatically determinable key figures. Because there is no "nose factor" here - the system determines the facts and awards points for them according to specified criteria. In order to achieve this comparability even with soft facts, an evaluation catalog for these criteria is very important. How should your colleagues who carry out the supplier assessment classify up to 100 points? When is a supplier very sustainable? What are acceptable response times in day-to-day business? A defined scale with reference points ensures that the suppliers are assessed more or less uniformly across the board. In the end, you will come closest to your goal: using the supplier assessment to find out with whom things are already going well, where there is still need for development and which suppliers you should not consider in the future.

Digitize procurement processes

The most important objects of the procurement module, the master data in SAP procurement and SAP procurement under S / 4HANA.

Digitize procurement processes

How often do you carry out the supplier evaluation?

As already said - the supplier evaluation involves a certain amount of effort. The more manual criteria you create, the more you have to do. In order not to unnecessarily strain day-to-day business, a well-chosen cycle of the process is important. Whether monthly, quarterly or annually - the decision is entirely up to you. The cycle often goes hand in hand with the coordination between customer and supplier: If an annual strategic discussion is held on cooperation, possible improvements and defects, then it makes sense to also carry out the supplier assessment annually before this discussion. Speak quarterly - at least evaluate the hard facts quarterly. It is crucial that you allow enough time for a good assessment to get a meaningful result.

Define first, then map!

If you have clearly defined these points for yourself, they can be mapped in the SAP system. For this, the SAP standard provides ready-made mechanisms that can be supplemented with individual points. The subject of supplier evaluation is interesting for you - or do you want to share experiences? Feel free to contact me or leave a comment!

Christoph Lordieck

My name is Christoph Lordieck. A few years of project and implementation experience has not yet satisfied my thirst for knowledge and I am constantly looking for new topics and technical developments in the ABAP environment. I look forward to your question or suggestion!