PO0900M Purchase Order and Receiving Vendor Performance Analysis Report
Vendor Performance Analysis Report
Application Overview
This application gives you the capability of evaluating the performance of particular vendors, as well as comparing the performance of one vendor with another. The report shows such information as the vendor's last activity date, the number of orders you have submitted during the year, the value of purchases this year and last year, the number of purchase order lines for the year and the number of lines that were late. The report also provides several comparison percentages that give you a very clear idea of the vendor's ability to deliver quality products at the expected cost and on time. These percentages include the percentage of purchase order lines that were late this year and last, the percentage cost variance between expected and billed costs and the percentage of delivered items that were rejected. Finally, the report presents two averages: the average lead time and the average number of days late.
The report may be printed for a range of vendor numbers and for one or all commodity codes. The report will selectively disregard vendors with a last activity date that is earlier than a date that you specify.
Perhaps the most powerful feature of this application is the capability it provides of showing vendors that fall within a range of performance characteristics that you specify. For instance, you can show all vendors that have had less than 10% lines late, less than 5% cost variance and less than a 7% rejection rate. Or you can focus upon desirable vendors by specifying that only those with a rejection rate greater than 20% and a cost variance percent greater than 10% be shown. You will probably find the report most useful when you use it to compare vendors that provide a particular commodity. A buyer or department manager can determine what kind of service his vendors have been providing and then seek other vendors if he finds the level of service to be unsatisfactory. A buyer could also use these statistics as leverage for acquiring better service, prices or terms from a vendor who has been operating below par. This information can be valuable to anyone in your organization who deals with vendors and particularly valuable to those who have responsibility for selecting vendors.
Run Instructions
Select Vendor Performance Analysis Report from the pull down P/O Reports window.
The following options are available:
- Select the Print mode from the Vendor Performance Analysis Report menu bar
- Enter the data requested on the screen
- Answer Y to the question asking if you wish to restrict by percentages, a second screen will display upon which you specify which percentages apply and what their amounts are.
- The report then prints.
To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.
Entry Field Descriptions
Range Screen
Name | Type and Description |
1. Starting Vendor No | 6 alphanumeric characters. Enter the first vendor in the range of vendors that are to be considered for inclusion on the report. The number need not be that of a vendor on file in the Vendor file. Press the F7 key to search by vendor number. Press the F8 key to search by vendor name Defaults to ALL. |
2. Ending Vendor No | 6 alphanumeric characters. Enter the last vendor in the range of vendors that are to be considered for inclusion on the report. The number need not be that of a vendor on file in the Vendor file. Press the F7 key to search by vendor number. Press the F8 key to search by vendor name. Defaults to the starting vendor number. |
3. Commodity Code | 4 alphanumeric characters. Enter the commodity code for which the vendors who are included on the report are suppliers. Only those vendors who fall within the range of starting and ending vendor numbers and who provide this commodity will be shown. Defaults to All. |
4. Earliest Activity Date | A date in the standard date format. This activity date refers to the vendor's last activity date. You can selectively ignore those vendors who have not had recent activity by means of the date that you specify. Enter the earliest last activity date which will quality a vendor for inclusion on the report. Defaults to All. |
5. Restrict by Percentages ? | Y or N. Answer Y if you wish to advance to the second screen, where you can enter additional parameters that pertain to performance statistics. The second screen has no effect upon which data prints for individual vendors but it does affect which vendors will show up on the screen. Answer N if you do not wish to qualify by their performance statistics the vendors that are to appear on the report. Defaults to N. |
Percentages Screen
Name | Type and Description |
1. Restrict by Lines Late Pct ? | Y or N. Lines Late refers to those purchase order line items for which the merchandise was received later than it was requested. Line items that are canceled because of delays shipment are also considered to be late for purposes of this statistic. The lines late percent is the ration (expressed as a percentage) between the number of lines late and the total number of purchase order line items that were ordered from the vendor. |
Restrict by Lines Late Pct ? (continued) | Answer Y if you wish to qualify a vendor for inclusion on this report by his percentage of lines late. If you answer Y, you will be allowed to enter the next two fields. If you answer N, the program will advance to entry of the fourth field. Defaults to N. |
2. Target Lines Late Pct | 3 numeric digits (999). Enter the percentage of lines late that will be used for determining whether a vendor shows up on the report or not. The program will use your entry for this field in conjunction with your entry for the next field to qualify vendors. Defaults to zero. |
3. Show Vendors Over/Under 999% Lines Late | 1 alphabetic character. O or U. A submenu will display to remind you of the valid options. Enter O if you wish to show only those vendors who percent lines late is over the target percent entered in #2 above. Enter U if you wish to show those vendors whose percent is under the target percent. |
4. Restrict by Cost Variance Pct ? | Y or N. A cost variance is the difference between the price at which you ordered something and the price at which you were billed for it. Generally you are concerned if the vendor consistently charges more for what you order than your purchase order specified. You might also be interested in seeing those vendors who charge less. Defaults to N. |
5. Target Cost Variance Pct | 3 numeric digits (999). Enter the cost variance percentage that will be used for determining whether a vendor shows up on the report or not. The program will use your entry for this field in conjunction with your entry for the next field to qualify vendors. Defaults to zero. |
6. Shows Vendors Over/Under 999% Variance | 1 alphabetic character. O or U. 999% Variance A submenu will display to remind you of the valid options. Enter O if you wish to show only those vendors whose percent cost variance is over the target percent entered in #5 above. Enter U if you wish to show those vendors whose percent is under the target percent. |
7. Restrict by Item Rejection Pct ? | Y or N. Answer Y if you wish to qualify a vendor for inclusion on this report by his rejection percentage. If you answer Y, you will be allowed to enter the next two fields. Defaults to N. |
8. Target Item Rejection Pct | 3 numeric digits (999) The rejection percentage is the ratio between the number of items that were rejected and the number of items that were received. A high rejection rate indicates low‑quality products or careless packing or an inability on the vendor's part to ship precisely what was ordered. Enter the rejection percent that will be used for determining whether a vendor shows up on the report or not. The program will use your entry for this field in conjunction with your entry for the next field to qualify vendors. Defaults to zero. |
9. Show Vendors Over/Under 999% Rejection | 1 alphabetic character. O or U. A submenu will display to remind you of the valid options. Enter O if you wish to show only those vendors whose rejection percent is over the target percent entered in #8 above. Enter U if you wish to show those vendors whose percent is under the target percent. |
Vendor Performance Analysis Report
Vendor Performance Analysis If Restricted By Percentages
