Only subscribers on the Supplier Plus plan can access this feature

Supplier scorecards are designed to provide structured evaluations of suppliers based on key performance areas.

This guide explains how scorecard calculations work, including how scores are assigned, weighted, and aggregated to determine overall supplier performance.

Brief Summary of the Scorecard Calculation Process:

  1. Scorecard Structure: Categories represent overarching evaluation areas (e.g., Performance, Cost Effectiveness), while criteria are the specific items evaluated within each category (e.g., Delivery Reliability, Pricing Competitiveness).

  2. Scoring: Each criterion is scored on a scale from 0-5, where 0 is the lowest and 5 is the highest. For Risk, the scoring is reversed (0 = Low Risk, 5 = High Risk).

  3. Weighting: Categories are assigned weightings (in %) to reflect their importance in the overall score. These weightings must sum to 100%.

  4. Calculation Steps: User ratings are collected, weightings are applied, and scores are aggregated to determine overall and percentage scores for each category.

Detailed Explanation of Scorecard Calculations

Understanding the Scorecard Structure

  • Each scorecard is composed of categories/areas for evaluation.

  • Categories represent overarching themes or aspects of evaluation (e.g., Performance, Cost Effectiveness).

  • Criteria's are specific criteria within each category (e.g., Delivery Reliability, Pricing Competitiveness).

Scoring

  • Evaluate each criteria according to the predefined scoring scale of 0-5. For the scorecards, performance and sustainability tabs, 0 = lowest score and 5 = highest score. However for the Risk tab the scoring calculation is reversed where 0 = Low Risk and 5 = High Risk

  • Input the score for each area based on the performance or criteria observed.

Applying Weightings

  • Assign weightings to each category/area based on their relative importance. Higher weightings indicate greater significance in the overall evaluation

  • Weightings determine the impact of each category/area on the overall score.

  • Ensure that weightings sum up to 100% to reflect the complete evaluation coverage.

  • Weightings can only be applied when creating or editing a scorecard, not when applying the scorecard against a supplier.

Calculation Process

Step 1: Retrieve User Ratings

  • The system retrieves the ratings provided by users for each criterion within the scorecard (the 0-5 ratings given by the user when applying the scorecard against a supplier)

Step 2: Apply Weightings

  • The system applies the predefined weightings to the ratings for each criterion.

  • Weighted scores are calculated by multiplying the user rating by the corresponding weighting percentage.

Step 3: Aggregate Scores for Criteria

  • The weighted scores for all criteria within each category are aggregated.

  • This process involves summing up the weighted scores to obtain a total score for each category.

Step 4: Calculate Overall Score

  • The system calculates the overall score for the entire scorecard.

  • This is done by summing up the total scores for all categories.


Example Calculation

Scenario: Evaluating Performance Category

  • A supplier is evaluated using a scorecard that includes a Performance category.

  • The Performance category has a 40% weighting.

  • There are three criteria under the Performance category, and the user has assigned a score of 4 out of 5 for each.

Step 1: Retrieve User Rating

  • User inputs: 4 out of 5 for all three criteria under Performance.

Step 2: Calculate the Average Score for the Category

  • Average Score for Performance Category = (4 + 4 + 4) ÷ 3 = 4

Step 3: Apply Weighting

  • Weighting for Performance Category = 40%

Step 4: Calculate Weighted Score

  • Weighted Score = Average Score × Weighting

  • Weighted Score = 4 × 40% = 1.6

Step 5: Convert Weighted Score to Percentage Score

  • Percentage Score Calculation:

    • Percentage Score = (Weighted Score / Maximum Possible Score) × 100%

    • Percentage Score = (1.6 / 5) × 100%

    • Percentage Score = 32%

Final Result

  • The Performance category contributes 32% to the overall supplier score.

Key Considerations & Best Practices

✅ Understand Scoring Differences – The Risk tab uses reversed scoring, where 0 = Low Risk and 5 = High Risk, unlike other tabs.

✅ Ensure Weightings Add Up to 100% – The total weight of all categories must equal 100% for an accurate overall score.

✅ Weightings Cannot Be Changed When Applying a Scorecard – Weightings must be set when creating or editing the scorecard.

✅ Use Scorecards for Informed Decisions – The final percentage score helps compare supplier performance across multiple categories.

✅ Review Historical Scores – Previously applied scorecards can be reviewed for trends in supplier performance.

Additional Resources

📌 Related User Guides:

📌 Need Further Help?
If you need assistance with scorecard calculations, reach out to your System Administrator or the support team for guidance.