Re : Vendor Sourcing and Vendor Evaluation

[Former Member]

Can anyone please let me know what is difference between Vendor Sourcing and Vendor Evaluation ?

Please ASAP

THanks

[avudaiappan_e]

Hi

Vendor sourcing is often associated with a centralized procurement strategy, wherein a central buying organization seeks economies of scale through corporate-wide standardization and benchmarking. Vendor sourcing also involves focussing on development of new alternate vendors who are cost-effective and provide high quality materials. This is the initial stage in the purchase process.

Vendor evaluation is to analyse and rate the vendor based on his performance to the order issued. The performance strategies can be price, delivery, quality, invoicing etc. This is the final stage in the purchasing process.

Thanks !

E.Avudaiappan

[Former Member]

Hi,

vendor Sourcing is to determine the list of sources for a particular material without any performance check as per "Price".."Quality"..."Delivery"..."General Service/Support".Vendor Source List can be maintained through Tcode-ME01.

Whereas in case of vendor evaluation the vendors are evaluated and measured according to their performance on the basis of above factors and given a particular score for that.The vendor evaluation can be determined using ME61.

Hope this will clarify your query

Thanks & Regards,

Bijay Pradhan

[Former Member]

HI Pradhan

Thanks lot . we can use the source list flow for the vendor sourcing

[Former Member]

Ok.

Thanks & regards,

Bijay Pradhan

[Former Member]

HI

Thanks and much appreciated

[Former Member]

Dear,

Vendor Sourcing is related to source an authentic, quality vendor for your needs.

Vendor evaluation is evaluating your existing vendors performance.

Vendor sourcing done by many businesses through evaluating them against some standard questions and check lists.

Regards,

Syed Hussain.