1. What is this module about
The ‘Supplier reviews’ option provides a structured way for assessing whether a supplier meets the performance targets defined by the organization. Objectives can be associated either with a supplier organization or with a specific supplier contract. Each objective represents a measurable target that must be met within a defined period.
Examples of such objectives include:
- Maintaining a delivery performance above 95%
- Keeping the number of defects below 10
1.1 Supplier objective types
Users assigned to the system group ‘5. Manage supplier objective types’ are authorized to define supplier objective types. An objective type represents a predefined measurement model that specifies how an objective is evaluated and which object (supplier or contract) it applies to. These types provide a structured way to categorize and differentiate the various kinds of supplier objectives used throughout the application.
Next to the supplier objective type name and option for a more detailed description, the following options can be determined:
- Concerns: The object where the supplier objective type applies to. Distinguish between organization objectives and contract objectives.
- Direction: A supplier’s objective can be to increase, decrease, or keep something the same, depending on what the company wants to achieve. For example, a supplier might work to increase delivery performance, decrease costs or defects, or maintain a good quality level. This helps everyone understand what direction the supplier should take to meet the overall goal.
- Unit: Each supplier objective should have a clear way to measure it. The unit you use depends on what you’re tracking. For example, performance or quality goals are often measured in percentages, like on-time delivery or defect rate. Cost goals can be shown in money (amount), and production or material goals can use quantity units such as kilograms, centimeters, or pieces. Using the right unit helps everyone see progress clearly and know when the target has been reached.
Each supplier objective type provides an overview of all supplier objectives that are associated with it. This allows users to see where a specific objective type is applied across suppliers or contracts.
1.2 Supplier objectives and evaluations
When the ‘Supplier reviews’ feature is enabled, an ‘Objectives’ tab becomes available on supplier organizations and supplier contracts. This tab serves as the central area where all defined objectives for that object are displayed. It also supports filtering, allowing users to view objectives for a specific period or supplier objective type. In addition, the tab presents a visual overview showing the distribution of objectives by status.
When creating a new objective, a supplier objective type must be selected. This determines how the objective will be measured and which unit applies. The objective also includes a start date, an end date, a target value, and a status.
During the objective period, users who are authorized to create objectives can also create evaluations. An evaluation represents a point in time where the organization reviews the supplier’s performance to determine whether the defined target is on track to be met.
Each evaluation records who performed the evaluation and the date it was carried out. It also includes the score for that moment. Additional comments can be added, and one or more documents may be attached to support the evaluation.
When an objective has multiple evaluations, its progress can be viewed in an evaluation chart. This chart displays all evaluation results in a line diagram, showing both the target value and the registered scores.
The most recently completed evaluation is also shown on the objective’s main page, as well as in various overviews where the score is displayed. This ensures that the current or most recent score is always visible when navigating to the objectives overview.
2. General supplier reviews module settings
To enable the supplier reviews functionality, go to ‘Module settings' → ‘Master data’ drop-down → Suppliers. When enabling the functionality, the option to create Supplier objective types can also be done straight from the module settings or from the navigation menu option 'Contacts’.