Overview
Supplier evaluation means a formal assessment of suppliers to measure their performance against various criteria and determine if they meet the organizational needs. The objective is to create a best-in-class and low-risk portfolio of available suppliers for use.
A supplier evaluation criterion group makes it easier to decide on a product or service. You can determine how well a vendor provides a service by reviewing the ratings of vendors who supply similar products against a group of evaluation criteria.
Example
A purchasing manager at Company X wants to evaluate supplier performance to see how a supplier is rated compared to the other vendors providing similar supplies.
Supplier Evaluation Feature in Dynamics 365
Dynamics 365 Finance & Operations allows you to configure your own Supplier Evaluation Criteria and then track the supplier performance against any or all the criteria that you have defined. This functionality also lets you search for the right vendor for RFQ or Purchase Order.
To use the supplier evaluation feature, the following steps need to be performed;
- Create a supplier criterion group
- Create supplier evaluation criteria
- Assign an evaluation criterion group to a procurement group
The first step in configuring the Vendor Ratings within Dynamics 365 Finance and Operations is to create some Supplier Evaluation Criteria Groups. These will be used to group common sets of evaluation criteria together and allow you to get summary results on the evaluations at the criteria group level.
Create a supplier evaluation criterion in D365
To create a supplier evaluation criterion group in D365, go to Procurement and Sourcing> Setup > Suppliers > Supplier evaluation criterion groups.
Click New and enter a name for the group and enter a detailed description of the group if required.
To add supplier evaluation criteria to the group or to create new criteria and then assign them to the group, on the Action Pane, click Supplier evaluation criteria.
