Vendor performance tracking involves collecting delivery, quality, and cost data from multiple sources each month, then manually consolidating and scoring vendors against SLA agreements. Manual data gathering and spreadsheet entry create delays, errors, and late identification of underperformers.
Automation pulls vendor data directly from accounting and CRM systems, calculates compliance scores automatically, and flags underperforming vendors in real time. Leadership receives an accurate, complete scorecard the same day data is available.
The full workflow, from trigger to completion.
Automation runs on the first business day of each month, or when a vendor escalation is manually flagged.
Automation reads the active vendor master list and identifies all vendors with active SLA agreements.
Automation queries via API to extract purchase orders, invoices, and delivery dates for each vendor in the current month.
Automation retrieves defect counts, return rates, and rework hourss or a linked quality database, or sends automated requests to operations staff.
Automation computes on-time delivery percentage, defect rate, and cost variance for each vendor, then calculates overall SLA compliance scores against agreed thresholds.
Automation identifies vendors scoring below 85% compliance and prepares escalation summaries with specific SLA breaches and recommended actions.
Automation updates the master vendor scorecard and sends a notification to procurement leadership with a summary of performance trends and flagged vendors.
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