VENDOR EVALUTION IN SAP MM

Evaluation is normally done by any organization to weigh the level of either understanding of an individual if it is based in an institution or the level of the delivery by the person concerned. In many occasions, evaluation is done by the second party to give valid results which are accurate and do not give out a vague conclusion. This means, evaluation is not meant to discourage an individual but to encourage him or her to put more efforts in the work that is being carried out. Therefore, vendor evaluation is a good tool which is by the managers in sap mm companies to measure the production work which is done by a particular vendor in order to give him his or her scores of performing work. This is done by special people who are either working in the company or just invited to come and supervise the evaluation process and give out his findings without biasness on the vendor. This only gives the intended vendor a room to improve on the work being delivered or even continuing with the same heart he is using to work.

Vendor evaluation in sap mm only dwells on specific areas carried out by the vendor. These key concerned include; purchasing organization. This is because, this is the only place where the efforts of the vendors starts coming out and in purchasing goods one must deal with valuable materials only so as to increase the production in the company. The vendor must put more efforts to encourage those who employed him or her to continue holding them in the company and maintain the good name of the company in production of valid materials to its clients. The vendor must always show some commitment in his or her work so as to deserve the payment given to him. In vendor evaluation in sap mm, any evaluation that is done it earns any vendor some scores which can be used to increase his or her chances of competing among other vendors. The evaluation is usually done by a special weighing key so as to give correct values at the end of measurement. Through the weighing done on the scores of the vendors, one is able to determine what share is made up by the overall scores from the main criteria in the system of vendor evaluation. However, all weightings must always be defined in particular weighing keys to avoid confusion brought by including many keys at the same times for a given purchasing organization in the company.

For valid results when dealing with vendor evaluation in sap mm, one must remember to assign weighting key to each vendor after allowing the first evaluation to go through which calls for the coming of the scores that are being waited to be scored by the vendor. This only calls for a very short period of time for the whole process including many steps to be completed in sap mm vendor evaluation. One must ensure that, for the process to be valid one should have a main criterion of ninety nine percent.