ACBUY: Identify High-Risk Vendors Using Spreadsheet Metrics
2025-11-24
Vendor risk management is crucial for maintaining supply chain integrity and product quality. Learn how to automatically flag problematic sellers using data-driven spreadsheet metrics.
Key Risk Indicators to Monitor
1. Quality Control Failure Rate
Track vendors with repeated QC issues using this formula:
=IF((Failed_Inspections/Total_Inspections)>0.1,"HIGH RISK","OK")
- Flag vendors exceeding 10% failure rate
- Monitor trend over last 6 inspections
- Check for specific defect patterns
2. On-Time Delivery Performance
Identify chronic late shippers with delivery metrics:
=IF((Late_Shipments/Total_Shipments)>0.15,"HIGH RISK","OK")
- Alert on vendors missing 15%+ deadlines
- Track average days delayed
- Monitor communication response time
3. Customer Refund Rate Analysis
Calculate refund rates to spot quality issues:
=IF((Refunds_Issued/Units_Sold)>0.05,"HIGH RISK","OK")
- Flag vendors exceeding 5% refund rate
- Analyze refund reasons categories
- Compare against product category averages
Automated Vendor Scoring System
| Risk Factor | Weight | Threshold | Risk Score |
|---|---|---|---|
| QC Failure Rate | 40% | >10% | 0-40 points |
| Late Shipments | 30% | >15% | 0-30 points |
| Refund Rate | 30% | >5% | 0-30 points |
Implementation Steps
- Data Collection:
- Formula Setup:
- Conditional Formatting:
- Dashboard Creation:
- Automated Alerts:
- Formula Setup:
Complete Risk Scoring Formula:
=IF(QC_Failure_Rate>0.1,40,0)+IF(Late_Shipment_Rate>0.15,30,0)+IF(Refund_Rate>0.05,30,0)
Vendors scoring 50+ points
Benefits of Automated Vendor Screening
- Reduce supply chain disruptions by 65%
- Cut quality-related losses by 40%
- Save 15+ hours monthly on manual reviews
- Make data-driven vendor decisions
- Improve customer satisfaction scores
Next Steps: