When a supplier disputes a low rating generated by an ERP system, the most appropriate action for the purchasing agent involves:

Data Verification: Begin by comparing the vendor's records with the company’s detail records. This step helps identify any discrepancies between the data sets.

Detailed Review: Conduct a detailed review of the records to understand the nature of the rating. Look at specific transactions, delivery times, quantities, and other relevant metrics.

Interviews with Employees: Interview the company employees who handled and processed the data. These discussions can provide insights into potential errors or miscommunications that may have occurred during data entry or processing.

Root Cause Analysis: Perform a root cause analysis to determine why the rating was low. This involves identifying any flaws in the data collection or rating methodology used by the ERP system.

Resolution: Based on the findings, take corrective actions to address any identified issues. If the low rating was due to an error, make the necessary adjustments to the supplier’s rating. If the rating was accurate, provide the supplier with detailed feedback to help them improve.

By following this approach, the purchasing agent ensures a fair and accurate assessment of the supplier’s performance, maintaining trust and transparency in the relationship.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management.

Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2010). Supply Management.