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.

Note- Know complete details about GST Registration for grow business.

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.

Previous Post Next Post