What Should Be on a Vendor Scorecard: Essential Metrics and Template

If you're managing multiple vendors without a clear scoring system, you're flying blind. 65% of procurement teams struggle to identify underperforming suppliers because they lack standardized vendor scorecards.

By the end of this guide, you'll know exactly what metrics to track, how to build a vendor scorecard, and how to use it to improve supplier relationships.

Quick Summary

Essential vendor scorecard metrics (quality, delivery, pricing, service)
How to calculate vendor performance scores with formulas
Vendor scorecard template ready to use
How to automate scorecard data collection from vendor sheets

Common Problems Without Vendor Scorecards

No visibility into vendor performance - Can't tell which suppliers are reliable
Inconsistent evaluation - Different team members rate vendors differently
Missing critical data - Don't track on-time delivery, quality issues, or cost trends
Reactive vendor management - Only notice problems after they cause delays
Difficulty comparing vendors - Hard to choose between suppliers objectively
No data-driven decisions - Renew contracts based on gut feeling, not metrics
Vendor data scattered - Performance info buried in emails, spreadsheets, and ERP
Inability to negotiate - No leverage when vendors underperform
Risk management gaps - Don't identify high-risk suppliers early
Time wasted on manual tracking - Hours spent compiling vendor performance data

Step-by-Step: What to Include on Your Vendor Scorecard

Step 1: Quality Metrics (30% Weight)

Quality is the foundation of vendor performance. Track these metrics:

On-Time Quality Rate

Formula:

(Orders Delivered Without Defects / Total Orders) × 100

Excel Formula:

=(COUNTIFS(Defect_Column,"=0",Status_Column,"=Delivered")/COUNT(Status_Column))*100

Target: 95% or higher

Defect Rate

Formula:

(Defective Items / Total Items Received) × 100

Excel Formula:

=(SUM(Defective_Items)/SUM(Total_Items))*100

Target: Less than 2%

Return/Rejection Rate

Formula:

(Returned Orders / Total Orders) × 100

Target: Less than 5%

Quality Score Calculation:

=IF(OnTimeQuality>=95, 30, IF(OnTimeQuality>=90, 25, IF(OnTimeQuality>=85, 20, 15)))

Step 2: Delivery Performance (25% Weight)

On-time delivery keeps your operations running smoothly.

On-Time Delivery Rate

Formula:

(Orders Delivered On Time / Total Orders) × 100

Excel Formula:

=(COUNTIFS(Delivery_Date,"<="&Due_Date)/COUNT(Order_ID))*100

Target: 95% or higher

Average Days Late

Formula:

AVERAGE(Max(0, Delivery Date - Due Date))

Excel Formula:

=AVERAGE(IF(Delivery_Date>Due_Date, Delivery_Date-Due_Date, 0))

Target: Less than 1 day

Fill Rate (Order Completeness)

Formula:

(Items Received / Items Ordered) × 100

Target: 98% or higher

Delivery Score Calculation:

=IF(OnTimeDelivery>=95, 25, IF(OnTimeDelivery>=90, 20, IF(OnTimeDelivery>=85, 15, 10)))

Step 3: Pricing & Cost Metrics (20% Weight)

Cost competitiveness matters, but don't sacrifice quality for the lowest price.

Price Competitiveness

Compare vendor prices to market average:
Formula:

((Market Average Price - Vendor Price) / Market Average Price) × 100

Excel Formula:

=((Market_Avg_Price-Vendor_Price)/Market_Avg_Price)*100

Target: Within 5% of market average

Price Stability

Track price changes over time:
Formula:

Standard Deviation of Prices (Lower = More Stable)

Excel Formula:

=STDEV(Price_Range)

Target: Low variance (consistent pricing)

Total Cost of Ownership (TCO)

Include hidden costs:

Unit price
Shipping costs
Quality issues (rework, returns)
Administrative costs

Formula:

TCO = Unit Price + Shipping + (Defect Cost × Defect Rate) + Admin Cost

Pricing Score Calculation:

=IF(Price_Competitiveness>=0, 20, IF(Price_Competitiveness>=-5, 15, IF(Price_Competitiveness>=-10, 10, 5)))

Step 4: Service & Responsiveness (15% Weight)

Good service prevents problems before they escalate.

Response Time

Formula:

Average Hours to Respond to Inquiries

Target: Less than 24 hours

Communication Quality

Subjective rating (1-5 scale):

5: Excellent, proactive communication
4: Good, responds promptly
3: Adequate, sometimes slow
2: Poor, hard to reach
1: Very poor, unresponsive

Problem Resolution Time

Formula:

Average Days to Resolve Issues

Target: Less than 3 days

Service Score Calculation:

=IF(Average_Response_Time<=24, 15, IF(Average_Response_Time<=48, 12, IF(Average_Response_Time<=72, 8, 5)))

Step 5: Compliance & Risk (10% Weight)

Ensure vendors meet regulatory and safety requirements.

Compliance Rate

Formula:

(Compliant Deliveries / Total Deliveries) × 100

Target: 100%

Certifications Status

ISO 9001 (Quality)
ISO 14001 (Environmental)
Industry-specific certifications
Safety certifications

Score: 2 points per valid certification (max 10)

Risk Factors

Flag vendors with:

Financial instability
Legal issues
Geographic risks
Single-source dependency

Score: Deduct 2 points per risk factor

Compliance Score Calculation:

=IF(Compliance_Rate=100, 10, IF(Compliance_Rate>=95, 8, IF(Compliance_Rate>=90, 5, 0)))

Step 6: Calculate Overall Vendor Score

Combine all metrics into a single score:

Excel Formula:

=Quality_Score + Delivery_Score + Pricing_Score + Service_Score + Compliance_Score

Score Interpretation:

90-100: Excellent - Preferred vendor, increase business
80-89: Good - Reliable vendor, maintain relationship
70-79: Fair - Monitor closely, address issues
60-69: Poor - Develop improvement plan or find alternative
Below 60: Critical - Consider replacing vendor

Real Example: Vendor Scorecard in Action

Vendor A Performance Data:

Metric	Value	Target	Score
On-Time Quality Rate	97%	95%	30/30
On-Time Delivery Rate	92%	95%	20/25
Price vs Market	-3%	±5%	15/20
Response Time	18 hours	<24h	15/15
Compliance Rate	100%	100%	10/10
Total Score			90/100

Rating: Excellent - Preferred vendor

Vendor B Performance Data:

Metric	Value	Target	Score
On-Time Quality Rate	88%	95%	20/30
On-Time Delivery Rate	85%	95%	15/25
Price vs Market	-8%	±5%	10/20
Response Time	48 hours	<24h	12/15
Compliance Rate	95%	100%	8/10
Total Score			65/100

Rating: Poor - Needs improvement plan

Vendor Scorecard Template

Excel Template Structure:

Vendor Name	Vendor Code	Period	Quality (30)	Delivery (25)	Pricing (20)	Service (15)	Compliance (10)	Total Score	Rating
Acme Corp	V-001	Q1 2025	30	25	18	15	10	98	Excellent
Beta LLC	V-002	Q1 2025	25	20	15	12	8	80	Good

Detailed Metrics Sheet:

Vendor	Order ID	Delivery Date	Due Date	On Time?	Defects	Quality Score	Delivery Score
Acme	ORD-001	2025-01-15	2025-01-15	Yes	0	30	25
Acme	ORD-002	2025-01-20	2025-01-18	No	2	28	20

Mini Automation Using RowTidy

You can automate vendor scorecard data collection in 10 seconds using RowTidy's AI Recipes.

The Problem:
Vendor performance data comes from multiple sources:

Purchase orders (delivery dates)
Quality reports (defect rates)
Invoices (pricing)
Email communications (response times)

The Solution:
RowTidy can:

Extract data from vendor sheets - Automatically pull delivery dates, quantities, prices
Calculate metrics - Compute on-time delivery, defect rates, price competitiveness
Update scorecard - Populate vendor scorecard template automatically
Generate reports - Create vendor performance dashboards

RowTidy Recipe for Vendor Scorecards:

Import vendor delivery data from Excel/CSV
Calculate on-time delivery rates
Extract quality metrics from inspection reports
Compare pricing across vendors
Generate scorecard automatically

Time saved: 8 hours of manual data entry → 2 minutes

Instead of manually compiling vendor performance data every month, let RowTidy automate your scorecard updates. Try RowTidy's vendor scorecard automation →

FAQ

1. How often should I update vendor scorecards?

Update vendor scorecards monthly for active vendors, quarterly for less critical suppliers. Real-time updates are ideal but require automated data collection.

2. What's the minimum number of orders needed to score a vendor?

Score vendors with at least 10 orders in the evaluation period. For new vendors, use a shorter evaluation period or combine with reference checks.

3. Should I weight metrics differently for different vendor types?

Yes. For critical suppliers, weight quality and delivery higher. For commodity suppliers, weight pricing higher. Adjust weights based on your business priorities.

4. How do I handle subjective metrics like communication quality?

Use a standardized rating scale (1-5) and have multiple team members rate vendors. Average their scores for objectivity.

5. Can I automate vendor scorecard calculations?

Yes. Use Excel formulas, Power Query, or tools like RowTidy to automate data collection and score calculations from vendor sheets and ERP systems.

6. What if a vendor scores poorly in one area but excellent in others?

Use the overall score as a guide, but investigate low-scoring areas. A vendor with 95% quality but 70% delivery might need a delivery improvement plan rather than replacement.

7. How do I share scorecards with vendors?

Share scorecards during quarterly business reviews. Be transparent about metrics and work together on improvement plans. This builds trust and accountability.

8. Should I include financial stability in the scorecard?

Yes, as part of the risk assessment. Check vendor credit ratings, payment history, and financial reports. Flag vendors with financial risks.

9. How do I compare vendors in different categories?

Create separate scorecards for different vendor categories (raw materials, services, logistics). Compare vendors within the same category only.

10. What's the best way to track vendor scorecard data over time?

Use a time-series dashboard showing score trends. Track improvements or declines. Set up alerts for vendors whose scores drop below thresholds.

Related Guides

Conclusion

A well-designed vendor scorecard gives you data-driven insights into supplier performance. By tracking quality, delivery, pricing, service, and compliance metrics, you can make informed decisions about vendor relationships, identify improvement opportunities, and reduce supply chain risks.

Try RowTidy — automate your vendor scorecard data collection and calculations to save hours every month.