Purpose: The purpose of this blog post is to bring the real-life day-to-day scenarios of a material buyer based on my own domain experience as a material buyer. These blog posts are mainly for material buyers (end users), however, new MM consultants can also get benefited by knowing the buyer’s role better.
This is the eighth blog post of the series – Day in the Life of a material buyer. Please go through the previous blog posts to understand other activities of the buyer.
This blog post will focus on how to monitor vendor delivery performances.
High-level activities by the buyer
–Review vendor delivery performance.
–Create DMR’s (Discrepant material reports).
–Follow up with vendors who are not performing as per the targets.
–Analyze and work issues related to receipt of material.
SAP tools that help to analyze vendor performance are
–Standard Lists & Reports (see Excess/Obsolete) (
- Custom report – Vendor On-time Delivery Report. There is no good standard report for vendor delivery performance, we had used a custom report –
- Input ( Purchase org, purchase group, vendor, PO document date, Delivery date range, inbound date range, material range, plant, delivery completed indicator, and a flag for summarization)
- Output: Vendor, material, Number of order lines, average real-time days to deliver, planned delivery time, the average number of days late)
- If a detailed report is chosen in the initial screen, it will give PO -item-wise delay.
–Goods Movements (see Shortage)
- MB51 – Review Goods Receipt Activity (We had enhanced it for some specific needs)
- Find all recent receipt-related activities (movement types 101 thru 104, Trans./Event Type ‘WE’) for a specific Plant, Storage Location, and MRP Controller over a period of time
Once you have the report outputs, you can analyze vendors against their delivery performance and take the right action.
Do look into these links for some additional knowledge
your feedback especially on the type of reports you used for vendor delivery performance would help to make this blog better.