SpendMap User Guide (v14.5)

Column Titles

Description

FOCUS

•The area of performance being tracked.

DESCRIPTION

•Provides additional details/description of the data used to calculate performance for the applicable criteria.

TIMEFRAME

•Shows the period of performance, per the date range you specified when running the report.

•If you do not override the date range that defaults, the report will include two columns, one for the current period and one for the previous period (same number of months). The previous period’s values are for reference purposes only and do not affect performance calculations for the current period.

AVERAGE OF ALL SUPPLIERS

•Included for reference purposes and used for calculating the value in the Performance Column.

PERFORMANCE

•Indicates the supplier’s performance for the corresponding performance criteria, compared to all other suppliers (supplier average).

•A value of 50% indicates average performance. That is, if the supplier’s performance is the same as the supplier average, their performance will be 50%.

More details...

WEIGHTING FACTOR

•Indicates the importance of the area of performance (between 0 and 1) in your organization, as established in Supplier Performance Settings.

PERFORMANCE INDEX

•The result of multiplying the Performance by the Weighting Factor, divided by the sum of all Weighting Factors. This indicates how the supplier’s performance in this area (focus) contributes to the supplier’s Overall Performance value at the bottom of the report.

Focus (Criteria)

How Performance is Calculated

ACTIVITY

•Activity performance is calculated based on both the number of orders and their total value. Half the weighting is given to the number of orders placed with the supplier (regardless of the value of those orders) and half is based on the value of all orders (regardless how many order were placed).

•All "average" values are included on the report for reference purposes but are not taken into account when calculating the performance for this area.

BILLING

•The % Invoice Error is the difference between the total dollars purchased and the total dollars invoiced, divided by the total dollars purchased.

•While the % Invoice Error is displayed either as a positive or negative value on the report for your reference, when calculating the PERFORMANCE (%), SpendMap will compare the absolute value of the supplier's invoice error to the absolute value of the average for all suppliers (i.e. 10% is the same as -10%).

•If you use the Invoice Discrepancy utility, invoice error will only go against a supplier's performance if indicated when an invoice discrepancy is processed.

DELIVERY

•Since early or late shipments should be considered in light of the importance of items being delivered (i.e. a low value order is probably not as important as a larger order), SpendMap uses “dollar-days” in its calculations.  

•The Average Days Late is the value of line items that were delivered AFTER the expected delivery date multiplied by the number of days late and divided by total purchases.

•The Average Days Early is the value of line items that were delivered BEFORE the expected delivery date multiplied by the number of days early and divided by total purchases.

How are re-promises factored in?

QUALITY

•The % is the total dollar value of items that were considered unacceptable (as indicated in Record Poor Quality for Supplier Performance) divided by total purchases.

CANCELED POs

•Since canceled POs should be considered in light of the importance of the items that were canceled (i.e. a low value order is probably not as important as a larger order), SpendMap considers the value of POs that were canceled in its calculations rather than the number of POs that were canceled.