What is Risk Scoring?
Risk scoring is like a grade or report card assigned to a supplier and their items. TraceGains provides you with all the tools you need to create a risk score report, such as questionnaires with configurable attributes, advanced calculations, and intelligent workflows.
Supplier-Level Risk Scoring
Within TraceGains help content, we often refer to the score resulting from a supplier’s answers to the Supplier Questionnaire as the ‘supplier-level risk score.’ For example, things like supplier bankruptcy and geopolitical concerns could impact the supplier-level risk score.
Item-Level Risk Scoring
Within TraceGains help content, we often refer to the score resulting from a supplier’s answers to Item Questionnaires as the ‘Item-Level Risk Score.’ For example, things like compliance document issues and product recalls could impact an item-level risk score.
Why Configure Calculations?
To complete risk score configuration in TraceGains, the proper calculations must be set up. Calculations are required for creating a workflow. This article will guide you through the process of creating the recommended risk-scoring calculations and adding them to your organization’s workflows.
How to determine % Attribute Weight
Many calculations require setting a % Attribute Weight. Each response can contribute a percentage (%) of the weight assigned to a question. Here’s an example:
| Response | Points Contribution | Explanation |
| Yes | 100% | All points are added to the question (e.g., 20 points) |
| Not applicable | 50% | Half of the points are added to the question (e.g., 10 points) |
| No | 0% |
No points are added to the question. |
In this example, the higher the points assigned to the item, the higher the risk level. Therefore:
- High-risk responses: 100% Attribute Weight
- Low-risk responses: 0% Attribute Weight
- Medium-risk responses: 50% Attribute Weight
Supplier-Level Risk Scoring Calculations
Standard configuration for the Supplier Risk Score includes total of 5 calculations for Supplier Level:
| Supplier Score Calculations | Purpose |
| Supplier Level - All Category Risk Questions | This calculation consolidates questions relevant to all suppliers, regardless of their group or category. The purpose is to streamline the process, reducing redundant data entry across multiple calculations. |
| Supplier Level - Raw Material Risk Questions | These instructions detail the process for creating a specific calculation tailored to assessing the risk associated with raw material suppliers. |
| Supplier Level - Raw Material Risk Score | This calculation consists of two previously created calculations that merge to calculate the Supplier Risk Score for Raw Materials Suppliers. (In our example: Suppliers that have Supplier Group = Raw Materials). |
| Supplier Level - Packaging Risk Questions | This calculation includes questions specifically related to packaging suppliers. (In our example: Suppliers that have Supplier Group = Packaging). The process to create this calculation is the same as the process for the Supplier Level - Raw Material Risk Questions calculation. Add only packaging category-related questions to the calculation. |
| Supplier Level - Packaging Risk Score |
This calculation consists of two previously created calculations that merge to calculate the Supplier Risk Score for Packaging Suppliers. (In our example: Suppliers that have Supplier Group = Packaging). |
Item-Level Risk Scoring Calculations
Standard configuration for the Supplier Risk Score includes total of 5 calculations for Supplier Level:
| Item Score Calculations | Purpose |
| Item Level - All Category Risk Questions | This calculation includes questions related to all items regardless of their group/category. The purpose is to combine all applicable questions to eliminate extra work in multiple calculations. |
| Item Level - Raw Material Risk Questions | This calculation includes questions specifically related to raw materials items. (In our example: Items that have Item Group = Raw Materials). |
| Item Level - Raw Material Risk Score | This calculation consists of two previously created calculations that merge together to calculate the Item Risk Score for Raw Materials. (In our example: Items that have Item Group = Raw Materials). |
| Item Level - Packaging Risk Questions | This calculation includes questions specifically related to packaging items. (In our example: Items that have Item Group = Packaging). The process to create this calculation is the same as the process for the Item Level - Raw Material Risk Questions calculation. Add only packaging category-related questions to the calculation. |
| Item Level - Packaging Risk Score | This calculation consists of two previously created calculations that merge to calculate the Item Risk Score for Packaging Items. (In our example: Items that have Item Group = Packaging). |
Basic Navigation
This article will guide you through creating calculations. To avoid repetitive steps, we’ve broken up the steps based on which calculations follow the same configuration process.
All calculations begin with the following navigation:
TraceGains Enterprise Site > Configuration Icon > Calculations > New
Configuration Steps for Questions Calculations
Step 1: Fill in the following details for each calculation:
Supplier Level:
-
Name: Supplier Level - All Category Risk Questions
Calculation Type: Weighted %
Use: Supplier/Site/Partner
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
-
Name: Supplier Level - Raw Material Risk Questions
Calculation Type: Weighted %
Use: Supplier/Site/Partner
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
-
Name: Supplier Level - Packaging Risk Questions
Calculation Type: Weighted %
Use: Supplier/Site/Partner
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
Item Level:
-
Name: Item Level - All Category Risk Questions
Calculation Type: Weighted %
Use: Items Supplied/Partner Items
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
-
Name: Item Level - Raw Material Risk Questions
Calculation Type: Weighted %
Use: Items Supplied/Partner Items
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
-
Name: Item Level - Packaging Risk Questions
Calculation Type: Weighted %
Use: Items Supplied/Partner Items
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
Step 2: Choose attributes and questions that impact the risk score. In standard configuration, attributes from the Supplier Questionnaire Online Form are used.
a. Select the Online Forms tab.
b. Choose "Supplier Questionnaire" OR “Item Questionnaire” from the drop-down menu, depending on whether you are creating a supplier-related or item-related calculation.
c. Click on the magnifying glass icon.
Step 3: For each question, click on the arrow and add all possible responses. Add the % Attribute Weight based on the response.
Step 4: Click "Save."
Configuration Steps for Score Calculations
Step 1: Fill in the following details for each calculation:
Supplier Level:
-
Name: Supplier Level - Raw Material Risk Score
Calculation Type: Weighted %
Use: Supplier/Site/Partner
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
-
Name: Supplier Level - Packaging Risk Score
Calculation Type: Weighted %
Use: Supplier/Site/Partner
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
Item Level:
-
Name: Item Level - Raw Material Risk Score
Calculation Type: Weighted %
Use: Items Supplied/Partner Items
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
-
Name: Item Level - Packaging Risk Score
Calculation Type: Weighted %
Use: Items Supplied/Partner Items
Group (Click on Managed Groups and create a new group if needed): Risk Score
Script Type: Float
Step 2: Select the Saved Calculations tab.
For Supplier Level Scores:
- Find the calculation "Supplier Level - All Category Risk Questions" and click the blue arrow on the right to add.
- Find the calculation “Supplier Level - Raw Material Risk Questions” OR “Supplier Level - Packaging Risk Questions” depending on which score calculation you are currently configuring. Click the blue arrow on the right to add.
For Item Level Scores:
- Find the calculation "Item Level - All Category Risk Questions" and click the blue arrow on the right to add.
- Find the calculation “Item Level - Raw Material Risk Questions” OR “Item Level - Packaging Risk Questions” depending on which score calculation you are currently configuring. Click the blue arrow on the right to add.
Step 3: Add the total calculation weight for each calculation in the Attribute Weight field.
Step 4: Click "Save."
Next Steps
Once all calculations are configured, you can create workflows to process risk scores for suppliers and items. Read on to this article.