Example for Vendor Management Workspace setup

Learn how you can create KPI groups using Vendor Management Workspace with an example.

Before you begin

Role required: sn_vlm.vendor_admin

About this task

Let's assume that a vendor manager wants to create a vendor KPI group for all of their software vendors. They want to associate KPIs with the vendor KPI group to measure the performance of all vendors in the vendor KPI group.

Procedure

1. Create a KPI group.
   1. Navigate to Vendor Management > Configuration > KPI Groups
   2. Click New
   3. Create a vendor KPI group for software vendors.
      1. In the Name field, enter Software.
      2. In the Description field, enter a description such as, "This KPI Group is for software vendors."
      3. In the Type menu, select Vendors.
      4. Right-click the form header and click Save.
2. Associate three KPIs with the vendor KPI group to evaluate the software vendors in that group.
   1. In the KPIs related list, click New.
   2. In the KPIfield, click the search icon, select each of the indicators listed below and click Submit to add the KPIs to the group.
      • Vendor Satisfaction with the Display Aggregate set to Average.
      • Average Stability - Critical Incidents with the Display Aggregate set to Average.
      • Total Incidents Created with the Display Aggregate set to Sum.
3. Add a weight value, which represents the relative order of importance, for each KPI that contributes towards the vendor score.
   • For Vendor Satisfaction, set the weight value to 60.
   • For Average Stability - Critical Incidents, set the weight value to 40.
   • For Total Incidents Created, set the weight value to 0, which indicates that it does not contribute to the vendor score calculation.

   The combined weight of all indicators added to the KPI group must be equal to 100. If the combined weight is above or below 100, then they are proportionately readjusted to 100.
4. Associate thresholds to the KPI group.
   Define a range for the threshold values and assign a state for each range. For example, you can assign the lower threshold as 0 and the upper threshold as 60 and define the status as critical. .

   Each range has a color associated with it by default. When the vendor score is calculated for the vendors in the vendor KPI group, the score displays the highlighted color associated with the threshold range in the Vendor Management Workspace

   For example:

   1. In the KPI Group Thresholds related list, click New.
      • In the Lower Threshold field, enter 0.
      • In the Upper Threshold field, enter 60.
      • In the Status menu, select Critical.
      • In the Order field, enter 200.
   2. Click Submit.

   Here is another example which shows that if the threshold values overlap between two different ranges, the one with a lower order number will be given preference.

   1. In the KPI Group Thresholds related list, click New.
      • In the Lower Threshold field, enter 50.
      • In the Upper Threshold field, enter 80.
      • In the Status menu, select Moderate.
      • In the Order field, enter 300.
   2. Click Submit.

   Because the KPI group threshold value of 60 overlaps between the two sets of thresholds set above, the preference is given to the KPI group threshold that has the Critical status because it has a lower order number. Therefore, if the KPI threshold has a value of 60, the highlighted color for that value in Vendor Management Workspace displays in the color set for the Critical status.
5. Add thresholds for the individual KPIs.

   After you set the thresholds, you can view the KPI values in highlighted colors that correspond to each threshold range for the KPI in Vendor Management Workspace.

   1. In the KPIs related list, click the preview icon next to the KPI for which you want to set the threshold and click Open Record.
   2. In the KPI Thresholds related list, click New.
      • In the Lower Threshold field, enter 60.
      • In the Upper Threshold field, enter 80.
      • In the Status menu, select Moderate.
      • In the Order field, enter 300.
   3. Click Submit.

   The threshold values for the KPI are highlighted with the color based on the threshold range in Vendor Management Workspace.

6. Add vendors to the KPI group.
   1. In the Vendors related list, click Edit.
   2. Add the vendors you want to add to the KPI group and click Save.