Simplify Supplier Qualification with SAP Supplier Lifecycle Management

  • by Oluwatoyin Eseyin, Certified SAP Logistics Consultant (Procurement)
  • June 30, 2015
Learn how to set up and use SAP Supplier Lifecycle Management 1.0 for supplier qualification based on questionnaires.
Learning Objectives

Reading this article, you will learn how to:

  • Define appropriate customer parameter settings for the qualification process
  • Maintain master data for the suppler qualification business scenario
  • Perform supplier qualification and consequently promote a potential supplier
Key Concept
SAP Supplier Lifecycle Management broadly supports the processes of registration, qualification, evaluation, and data maintenance aimed at fostering a supplier relationship with a purchasing organization. Supplier Qualification is a functionality that allows the purchasing organization to build and send a questionnaire quickly and efficiently while offering the capability to use weighted scores to evaluate potential suppliers.

Supplier qualification is the process of deciding who gets the initial approval to be a potential supplier based on agreed upon metrics as defined by the business. It represents an approach to data collection designed to get additional information not provided in the supplier registration form.

The supplier registration form completed by a potential supplier does not contain all the information that a purchaser needs to know about a seller at the inception of the business relationship. Following the approval of a supplier registration request (or manual creation of a potential supplier), it is useful to initiate a process to get further knowledge about the potential supplier that can be used to make an informed decision about whether or not to promote the potential supplier to a full-fledged supplier.

For more information on the supplier registration process using SAP Supplier Lifecycle Management, consult the article titled “Fast-Track and Improve Supplier Registration and Onboarding Process with SAP Supplier Lifecycle Management.” SAP Supplier Lifecycle Management (SLC) 1.0 provides a framework that supports score-based assessment of the qualification question response, which helps to align the actual score obtained with a defined target or minimum score. This benchmarking concept offers a numeric and quantitative approach to empirical decision making about the viability of a potential supplier.

I discuss this subject matter under the following subtopics using specific business examples for maintaining:

  • Number ranges
  • Customer parameter settings
  • Maximum size definition for attachments
  • Purchasing category
  • Qualification question library
  • Qualification questionnaire
  • Qualification template

I then explain how to:

  • Initiate the qualification process
  • Respond to the qualification questionnaire
  • Review the qualification request response
  • Promote the potential supplier to supplier

Oluwatoyin Eseyin

Oluwatoyin Eseyin is a certified SAP logistics consultant (procurement). She has more than 10 years’ implementation experience covering SAP inbound and outbound logistics processes in local and global corporations.

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