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Vendor Evaluation and Blacklisting in Dynamics 365

Vendor Evaluation and Blacklisting in Dynamics 365

Vendor evaluation and blacklisting is crucial to smooth functioning of organizations working with multiple vendors. Fair evaluation of vendors that give the best price and quality of goods or services will help make procurement decisions faster and cost effective, directly impacting your bottom line. For this purpose, we will learn how to evaluate and blacklist vendors in Microsoft Dynamics 365. 

Vendor Evaluation

Dynamics 365 allows a user to configure a Vendor Evaluation Criteria and track vendor performance against the defined criteria.

The first step in configuring Vendor Ratings within Dynamics 365 for Operations is to create some Vendor Evaluation Criteria Groups. These will be used to group common sets of evaluation criteria together and allow you to get summarized results of evaluations at the group level.

 

 

Task Details:  Create Vendor Evaluation Criteria Group

1.

Go to Modules > Procurement and sourcing > Setup > Vendors > Vendor Evaluation Criteria Group and Click New

2.

Enter your Criteria Group code in the Name field and give a detailed Description

 

Once Vendor Evaluation Criteria Groups have been setup, the user will set up some Vendor Evaluation Criteria codes that will be used to rate vendors.

 

Task Details:  Create Vendor Evaluation Criteria

3.

Assign a Vendor Evaluation Criteria Group to the record created.

 

 

Next, link the Evaluation Criteria with the Vendors within Dynamics 365. This is done through the Procurement Categories.

 

 

Task Details:  Configuring Vendors for Evaluation

1.

Go to Modules > Procurement and sourcing > Procurement Categories

2.

Select the top-level node of the Category required.

3.

Open Vendor evaluation criteria groups tab within the detail area and Click Add

4.

Select Evaluation Criteria Groups from the provided list, add to selected list and click ok

 

 

 

Now the user will link vendors that will be evaluated against this category.

 

Task Details:  Configuring Vendors for Evaluation

5.

Open the Vendors tab within the details panel and click Add

6.

Select all the vendors that are to be included in the evaluations, and click on the -> button. Click ok when vendors have been selected.

 

 

Rating Vendors

Once the evaluation criteria has been configured, the procurement department will start recording vendor ratings.

 

Task Details:  Vendor Rating

1.

Go to Modules > Procurement and sourcing > Procurement Categories

2.

Select the top-level node of the Category required.

3.

Open the Vendors tab within the details panel and select the vendor

4.

Click on the Evaluations button within the tabs menu bar.

 

 

This will open a Vendor evaluation maintenance form with all Evaluation Criteria Groups listed on the left, and Evaluation Criteria for that group on the right.

 

 

 

Task Details:  Vendor Rating

5.

Select the Rating for criteria selected.

6.

Repeat this for all Criteria Evaluation Groups

 

The Average Rating for the Vendor also gets updated when rating is changed by the user.

VENDOR BLACKLISTING

 

After completing vendor evaluation, purchasing officer will initiate a vendor blacklisting process for selected vendors. Case Management functionality in Dynamics 365 will be used to start the blacklisting process, where vendors to be blacklisted will be sent for committee’s review as a case.

 

 

 

Task Details:  Create Blacklisting Case

1.

Go to Module > Procurement and Sourcing > Vendors > All Vendors and select the vendor to be blacklisted. Click on the Create Case button in the action pane under General heading

 

 

Task Details:  Create Blacklisting Case

2.

Select the Case Category from the drop down as “VendBlckli” and Enter a detailed Description

3.

Set a Priority for this case.

4.

Can also enter Case Log to add further details about the vendor and click on create

5.

Click on the Submit button to process the workflow associated with this case

 

 

This case will be received by the committee panel consisting of Procurement and Warehouses Manager, Finance Manager and technical directors of departments.

 

 

 

 

Task Details: Review and Approval by Committee

1.

Committee members will navigate to Self Service and “Click on Tasks Assigned to me” Tile

2.

Select the relevant Case, Open and Review it.

3.

Define the Case Resolution as to be either Accept or Reject.

4.

Select the relevant option form the Workflow tab (Complete or Delegate).

5.

In the Comment field, type their notes and Click Submit

 

Once the committee accepts vendors to be backlisted, a notification will be received by the purchasing officer who generated the case. Next up, user will process to mark the selected vendor as blacklisted/on-hold.

 

 

Task Details: Vendor Blacklisting

1.

Go to Module > Procurement and Sourcing > Vendors > All vendors, select the vendor

2.

Click on the On-hold button in the action pane under the maintain header.

3.

Select the option All from the drop down to blacklist the vendor.

4.

Provide the end date of vendor blacklisting in the Vendor hold release date.

5.

Select a Reason Code for vendor on-hold/blacklisting and click ok

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Zubair Iqbal's picture
I am Zubair Iqbal, currently working as an Associate Business Analyst at Systems. Completing my MSc in Business Systems Integration from Brunel University London, I returned to Pakistan. Having hailed as a Teche, Foodie and Explorer, I live my life on my believes and passions.

Disclaimer: The views expressed here are solely those of the author in his private capacity and do not in any way represent the views of Systems Limited, or any other entity related to Systems Limited.

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