Buyer ratings
become a key component of the overall system, with a mandate to create and
operate a marketplace with systems that support decisions related to
procurement by buyer agencies in government.
What is the
buyer rating system?
The buyer
rating system has the entire sum of timely receipt, overdue payment, and
adherence at all service levels maintained by GEM. Therefore, the rating system
should evaluate the performance of buyers on an ongoing basis. This will reward
outstanding performers, and track and list poorly performing buyers, who will
cultivate a healthy environment among buyers to improve their performance.
What criteria
is the buyer rating system built on?
The buyer
rating system will give government organizations and GeM administrators an
objective basis to facilitate the identification of similar users, the cause of
SLA violations, and appropriate action.
Ø Because of
the above, buyer rating criteria have been made based on activities.
Ø Performed on
GeM by the buyer based on various parameters captured by buyer Adherence to GeM
service levels.
Ø The four
criteria for calculating buyer ratings for GeM have been considered with
different weights.
Ø However,
buyer ratings are an emerging concept, and GeM will have additional features so
that additional parameters can be added periodically, which will be updated in
the document.
What are the
parameters for rating buyers?
The Parameters for the Buyer Rating:
1. Timely Bid Closure (Weightage – 15%)
2. Timely Order Placing (Weightage - 15%)
3. Timely Acceptance (Weightage - 30%)
4. Timely Payments (Weightage - 40%)
What is
timely bid closure (weightage-15%)?
Ø This factor
monitors the buyer, who has GeM Registration, will have
an impact in following the bid / RA timelines related to GEM service levels.
Ø This
parameter considers the ability of the buyer to close the BID / RA and indent
within the stipulated time frame, i.e. post the bid submission date within 21
days.
Ø The rating is
calculated at each Bid / Ra level, and the average for the final rating of the
parameter is calculated.
Ø Only closed
bid / RA is considered for this rating.
Ø The matrix
for the rating is as given below:
Condition and
rating
1. Intend is created on or before
Independent Time (21 days post bid submission) *Rating* (5)
2. Indent is created after stipulated time within 20
days delay *Rating* (5 -delay days*0.25)
3. Indent is created after stipulated time with >=
20 days delay *Rating* (0)
Note: For the Bids/RAs which are not closed or for
the buyers with no Bid/RA, this rating will not be applicable
What is
Timely Order Placing (Weightage -15%)?
Ø This
parameter monitors the time restriction of buyers in generating orders after
indent is created.
Ø The rating is
calculated at each order level, and the average is calculated for the final
rating of the parameter.
Ø Only indents
converted to the rating are considered for this rating.
Ø The rating
matrix is given below:
Conditions
with rating
1. Order is placed on the same day of indent Creation
* Rating * (5)
2.
Order indent is placed within 20 days of manufacture * Rating * {5 - (Delay Days * 0.25)}
3. Order is made after 20 days of indent manufacture *
Rating * (0)
Note: For the Indents against which the order
has not been placed yet or for the buyers with no Indent, this
rating will not be applicable.
What is
Timely Acceptance (Weightage -30%)?
Ø This factor
monitors the time limit in acceptance of consignments (ie issuance of
consignment receipts and acceptance certificates, CRAC) after receipt of the
shipment from the supplier within the stipulated time frame.
Ø The SLA time
limit is 10 days of receipt of goods.
Ø This rating
is calculated at each order level, and the average is calculated for the final
rating of the parameter.
Ø Accepted
order or order is considered for a rating due to acceptance of the SLA period
(10 days post receipt) only for rating.
Ø The matrix
for the rating is given below:
Conditions
with rating
1. CRAC is generated on or before SLA period * rating (5)
2. CRAC is generated after a SLA period of 1–10 days
delay or CRAC generation is within 1–10 days post-determined period * rating * (5-day days * 0.1).
3. CRAC is generated after a delay of 11–30 days
followed by a SLA period or after a CRAC generation 11–20 days within a set
period * rating * (5-day days *
0.2).
4. CRAC arises after 30 days post-SLA period Or CRAC generation due to a set period
of more than 20 days * rating * (0)
Note: For the orders which are not due for acceptance or
for Buyers with no orders, this rating will not be applicable.
What are
Timely Payments ( Weightage -40%)?
Ø This factor
monitors the readiness of the DDO / PAO / Treasury Officer to make payment to
the seller after acceptance of the consignment.
Ø The SLA
deadline for acceptance of consignment payment is 10 days.
Ø This rating
is calculated at each order level, and the average is calculated for the final
rating of the parameter.
Ø Only paid
orders or orders are considered for a rating due to the paid post SLA period
(10 days post-approval of consignment / CRAC generation).
Ø The matrix
for the rating is given below:
Conditions with rating
1. Payment is made on or before SLA period * Rating * (5)
2.
Payment is made after a delay of 1 -50 days after the SLA period or
payment is within 1-30 days after the stipulated period * rating * (5-day days * 0.1).
3. Payment is made after the SLA period of 50 days or
payment is due on a scheduled period of more than 30 days * rating * (0).
Note: For orders that are not for payment or for
buyers without an order, this rating will not apply.
What is the
final buyer rating?
1. For a new purchaser, the rating system will have an
average rating, but if the purchaser remains inactive for a long period of
time; His rating will decrease by 1 every month.
2. If in some cases, all individual ratings of buyers
are available, except for the closing of the bid on time (NA case), then the
total rating will be calculated based on the remaining three.
3. As per current norms, the buyer rating is not
affected by the order amount/value.
What is the
benefit of the buyer rating?
Benefits to Buyer
1. Sellers prefer to trade with buyers according to
buyer ratings.
2. Good ratings reflect buyers' performance.
3. Buyers will be attracted to the seller for better
prices.
Note: Ratings define the performance of the buyers
which helps them for procurement.