Vendor KPI Groups in Vendor Management Workspace reference

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 4 minutes to read
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    Summary of Vendor KPI Groups in Vendor Management Workspace

    The Vendor KPI Groups in the Vendor Management Workspace allow ServiceNow customers to analyze vendor performance across various categories, including IT Services, Vendor Fulfillment, Software, and Hardware. Each group provides Key Performance Indicators (KPIs) to measure vendor effectiveness and includes related lists for detailed analysis.

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    Key Features

    • IT Services KPI Group: Analyzes vendor performance related to IT services, including customer satisfaction and service level agreement (SLA) achievement.
    • Vendor Fulfillment KPI Group: Focuses on metrics related to vendor fulfillment performance and incident management.
    • Software KPI Group: Evaluates vendor performance concerning software applications, including vendor satisfaction and requested items.
    • Hardware KPI Group: Assesses vendor performance for hardware applications, similar to the Software KPI Group.
    • Automated Vendor Score: An automated calculation that provides a comprehensive vendor score based on indicator performance and weights.
    • Scheduled Jobs: Daily updates for vendor scores and monthly updates for vendor profiles, with options for on-demand execution.

    Key Outcomes

    By utilizing the Vendor KPI Groups, ServiceNow customers can effectively monitor and evaluate vendor performance, make informed decisions based on comprehensive metrics, and ensure alignment with service delivery goals. The vendor score offers a clear indication of performance, while the ability to customize indicators enhances the relevance of the analysis.

    Use Vendor KPI Groups that are provided by default to analyze vendor performance.

    Vendor KPI Groups

    The following Vendor KPI Groups are available by default:
    • IT Services—includes KPIs to analyze vendor performance related to IT Services.
    • Vendor Fulfillment—includes KPIs to analyze vendor performance related to fulfillment.
    • Software—includes KPIs to analyze vendors related to software applications.
    • Hardware—includes KPIs to analyze vendors related to hardware applications.
    Each KPI group provided by default has the following related lists:
    • KPIs—indicators with a vendor breakdown that measure the performance of your vendors.

      Each indicator that contributes towards the vendor score has a weight associated with it.

    • KPI group thresholds—defines threshold values to indicate the status of each KPI group.
    • Vendors—list of vendors to analyze their performance.
    IT Services KPI Group

    The table below shows the indicators in this KPI group. All indicators that have the unit as percentage are used to calculate the vendor score.

    Indicators name Unit Description
    Average Customer Satisfaction Percentage Measures CSAT scores based on service offerings.
    Vendor Satisfaction Percentage Provides monthly breakdown of vendor satisfaction scores.
    Average SLA Achievement Percentage Calculates average value for SLAs that have been successfully completed.
    Average Availability Percentage Calculates average value achieved for incident SLAs.
    Average Request Activity Percentage Average value calculated from fulfilled request items derived from service portfolio catalog items. These items must be connected to service offerings.
    Total Incidents Created Number The total number of incidents created for vendors.
    Vendor Fulfillment KPI Group

    The table below shows the indicators in this KPI group. All indicators that have the unit as percentage are used to calculate the vendor score.

    Indicator Unit Description
    Average Customer Satisfaction Percentage Measures CSAT scores based on service offerings.
    Vendor Satisfaction Percentage Provides monthly breakdown of vendor satisfaction scores.
    Average Incident SLA Achievement Percentage Calculates average value achieved for incident SLAs that have been successfully completed.
    Average Request Fulfillment SLA Achievement Percentage Calculates average value for SLAs that have been successfully completed.
    Total Incidents Created Number The total number of incidents created for vendors.
    Average Request Activity Percentage Average value calculated from fulfilled request items derived from service portfolio catalog items. These items must be connected to service offerings.
    Software KPI Group

    The table below shows the indicators in this KPI group. All indicators that have the unit as percentage are used to calculate the vendor score.

    Indicator Unit Description
    Vendor Satisfaction Score Percentage Provides monthly breakdown of vendor satisfaction scores.
    Vendor Requested Items Number Provides the count of the vendor-requested catalog items.
    Manual SLA from External Source Percentage Calculates the manually added SLAs.
    Hardware KPI Group

    The table below shows the indicators in this KPI group. All indicators that have the unit as percentage are used to calculate the vendor score.

    Indicator Unit Description
    Vendor Satisfaction Score Percentage Provides monthly breakdown of vendor satisfaction scores.
    Vendor Requested Items Number Provides the count of the vendor-requested catalog items.
    Manual SLA from External Source Percentage Calculates the manually added SLAs.

    Vendor score indicator

    The Vendor Score indicator is an automated indicator. It used for calculating and displaying the vendor score. The calculation is done based on all indicators added to the KPI group for evaluating vendor performance.

    Schedule job

    The VMW Update Vendor Score scheduled job runs daily and updates the score. You can run this job on-demand to get updated scores at any time.

    The VMW Update Vendor Profile scheduled job runs monthly and updates all vendor profiles. You can run this job on-demand to get updated vendor profiles at any time.

    Calculating the vendor score

    The vendor score calculation is based on the weight of each indicator and the KPI score. The table below provides an example of how a vendor score is calculated.

    Important:
    The Service Offering Metric Data [service_offering_metric_data] table along with the following four indicators have been deprecated in the Utah release:
    • Average SLA Achievement [ServiceOffering.MetricData.SLA.Daily]
    • Average Customer Satisfaction [ServiceOffering.MetricData.CSAT.Daily]
    • Average Availability [ServiceOffering.MetricData.Availability.Daily]
    • Average Request Activity [ServiceOffering.MetricData.Activity.Daily]
    Therefore, if you have the Vendor Management Workspace application integrated with Service Portfolio Management, and if you are upgrading to the Service Portfolio Management standard portfolio, the metric data from the legacy indicators are no longer available. For information on Service Portfolio Management, see Service Portfolio Management portfolios.

    You can calculate the vendor score using the indicators that have a percentage value. You can also create custom formula indicators and add them to your vendor score calculation. For more information, see Add a formula indicator to track vendor score.

    Table 1. Vendor score calculation
    Indicator Indicator weight KPI score Indicator score that contributes towards vendor score
    Vendor Satisfaction 10.00% 54.42% 5.442%
    Average Customer Satisfaction 55.00% 83.00% 45.65%
    Average Availability 25.00% 88.50% 22.125%
    Average SLA Achievement 10.00% 100.00% 10.00%
    Total 83.217%

    The total vendor score has been rounded up to 83.22%. The score is also highlighted in the header with colors that are distinct for the defined threshold values for the KPI group.

    Note:
    The vendor score is impacted based on the whether the direction for the indicator is set to maximize or minimize. Below is an example that shows how the vendor score is impacted based on the indicator direction.
    Table 2. Vendor score impacted by indicator direction
    Indicator Direction Indicator weight Indicator metric score Indicator score that contributes towards vendor score
    Vendor Satisfaction Maximize 10.00% 54.42% 5.442%
    Average Customer Satisfaction Maximize 55.00% 83.00% 45.65%
    Average Availability Minimize 25.00% 88.50% 2.875%

    [(100 - 88.5) x.25]
    Average SLA Achievement Minimize 10.00% 100.00% 0%
    Total 53.967%