Procurement Documents

Vendor Scorecard Template (Free, Word): KPIs and Ratings

A free, vendor-neutral scorecard template for rating an existing supplier's performance every quarter, with KPIs and targets, a defined 1-to-5 scale, weights, rating bands and a corrective action log.

11 pages Microsoft Word Updated October 8, 2026
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Vendor Scorecard Template (Free, Word): KPIs and Ratings

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What's inside

The sections in the document, in order.

  1. Purpose and scope
  2. Vendor and contract details
  3. Review period and participants
  4. Scoring scale
  5. KPI categories and measures
  6. Weights
  7. Scorecard
  8. Overall rating bands and actions
  9. Issues and corrective actions log
  10. Vendor comments

Use this vendor scorecard template to rate how a supplier you already use is performing against its contract, and to review the results with the vendor each quarter. It works for any supplier, and it includes a ready-made set of KPIs for software, SaaS and IT services vendors: SLA attainment, incident response, release quality, support responsiveness, and security and compliance.


It's written for whoever owns the vendor relationship after the contract is signed, such as a vendor manager, procurement lead or IT manager. Every score from 1 to 5 has a defined meaning, and the thresholds and weights are agreed with the vendor before the period starts. The vendor knows how it will be judged, and the scores still stand up a year later, when it's time to decide on renewal.


The Word file is a complete supplier scorecard template you can use as it stands. It covers scope, the scoring scale, a KPI library that explains how to measure each KPI, weights, the scorecard itself, rating bands with the action each one triggers, a corrective action log, vendor comments, sign-off and a review schedule. Scoring proposals from several bidders is a different job: for that, follow the RFP process, step by step.


What's inside this template


  • A 1-to-5 scoring scale with a defined meaning for each score, plus a thresholds table so measured results convert to scores the same way every quarter
  • A KPI library in six categories (quality, delivery, cost, service, compliance and risk, relationship), with how to measure each KPI
  • Software and IT services KPIs: SLA attainment, incident response, release quality, support responsiveness, and security and compliance, each with its data source and a placeholder target
  • A weights table and a vendor performance scorecard that records each KPI's target, result, score, weight and weighted score, and the overall score
  • Overall rating bands with the action each one triggers, from a thank-you to formal escalation, plus rules for critical KPIs
  • An issues and corrective actions log, a vendor comments section and sign-off for both sides
  • A review schedule for quarterly reviews and an annual check of the KPIs, weights and thresholds

Download the editable Microsoft Word version below. The full text is on this page, so you can read it before you download.

How to use this template

A vendor scorecard is only as fair as its rules, so agree them with the vendor before the first quarter starts. Set the document up once, then repeat the last two steps every review period.

  1. Set it up from the contract. Fill in the vendor and contract details in Sections 1 and 2. Gather the SLA, the statement of work and any other terms the vendor’s performance is measured against. Every target on the scorecard should come from one of them.
  2. Choose the KPIs. Pick two or three KPIs per category from Section 5, using the software and IT services set for a SaaS or IT vendor. For each one, note how it’s measured and where the data comes from. Delete the rest.
  3. Set thresholds, weights and rating bands. Decide which results earn each score in Section 5.3, weight the categories so they total 100 in Section 6, and set the rating bands and actions in Section 8. Walk the vendor through all of it before the first period starts.
  4. Score each quarter. When the quarter ends, collect the vendor’s reports and your own records, and have each evaluator score the KPIs they have evidence for. Then work out the weighted scores, the overall score and the rating band in Sections 7 and 8.
  5. Review with the vendor and log actions. Send the draft to the vendor, hold the review meeting, record corrective actions with owners and due dates, add the vendor’s comments and sign off. Save each period’s scorecard so you can show the trend at renewal.

Vendor scorecard vs RFP scoring

Both use a 1-to-5 scale with defined scores and weights agreed in advance, so they’re easy to confuse. RFP scoring, sometimes laid out as a vendor evaluation matrix, compares several bidders once, before there’s a contract, on what each one proposes. A vendor scorecard rates one vendor after the contract is signed, on what it actually delivers, and you repeat it every review period.

If you’re choosing between bidders, use proposal scoring. The RFP process, step by step explains how to set the criteria and weights before proposals arrive and how to score them independently.

The two connect. Write the service levels, the KPIs and your plan for quarterly reviews into the RFP (see how to write an RFP), so bidders price them and agree to them before they win. The commitments in the winning proposal and the statement of work then become the targets on the scorecard.

The main differences:

  • Timing. RFP scoring happens once, during selection. A scorecard runs for the life of the contract.
  • Comparison. RFP scoring ranks bidders against each other. A scorecard measures one vendor against its own contract targets.
  • Evidence. RFP scores rest on proposals, demos and reference calls. Scorecard scores rest on SLA reports, service desk tickets, invoices and the experience of the people using the service.
  • Outcome. RFP scoring picks a winner. A scorecard leads to corrective actions and informs the renewal decision.

Choosing KPIs that are fair to the vendor

A scorecard changes a vendor’s behavior only when the vendor accepts the scores as fair. Otherwise each review turns into an argument about the data instead of a discussion about fixing problems.

Agree the KPIs, targets, thresholds and data sources with the vendor before the first period starts, and check each KPI against these tests:

  • It comes from the contract. Every target should trace back to the SLA, the statement of work or another contract term. If you want to measure something the contract doesn’t cover, agree it with the vendor and start measuring it the following period.
  • The vendor controls it. Leave out delays you caused, such as late approvals or missing test data, and anything the SLA excludes, such as scheduled maintenance. Measure availability exactly the way the SLA defines it.
  • Both sides can see the data. Name the data source for each KPI, share the figures with the draft scorecard, and check the vendor’s own reports against your records where you can.
  • The thresholds are set in advance. Decide which results earn each score before the period starts, and change them only at the annual review.
  • It uses rates where volume varies. Ten late tickets in a quiet month and ten in a busy month are very different results, so measure the share of tickets on time.
  • One failure isn’t counted three times. A major outage can pull down availability, incident response and relationship scores at once. Decide whether that’s what you intend, and write it into the scorecard.
  • Low scores come with examples. A poor score for communication needs dated examples the vendor can respond to.

How to run a quarterly review

The scorecard is preparation for the review meeting, and the meeting is where problems get an owner and a date. This cycle keeps each quarter’s review short and useful:

  • Collect the data as soon as the quarter ends. Ask the vendor for its SLA and ticket reports by a set date, and pull your own monitoring data, invoices and user feedback.
  • Score independently, then agree. Each evaluator scores the KPIs they own. The vendor manager consolidates the scores and settles large gaps with the evaluators before anything goes to the vendor.
  • Send the draft scorecard to the vendor before the meeting. Give the vendor time to check the figures and add its comments, so the meeting starts from agreed data.
  • Follow a fixed agenda: results and trend against last quarter, open and new issues, corrective actions, what the vendor needs from you, and what’s coming next quarter, such as releases, staffing changes or renewal dates.
  • Log every action with an owner and a due date, including actions on your side, and have both sides sign off the scorecard. Check each action on its due date rather than waiting for the next review.
  • Act on low ratings through the contract. Service credits, formal notices and termination rights come from the contract, not the scorecard, so check its terms and involve procurement or legal before you rely on one.
  • Once a year, review the scorecard itself. Drop KPIs that no longer matter, adjust weights and thresholds with the vendor, and feed the year’s results into the renewal decision.

The full template

This is the complete text of the Word document. Fill in the [bracketed] placeholders and delete the italic guidance before you send it.

1. Purpose and scope

Buyer instructions: replace every [bracketed placeholder], delete
anything that doesn’t apply, and delete all italic guidance before you
share this scorecard with the vendor. Set up Sections 1, 2, 4 to 6, 8
and 12, and the KPI rows in Section 7, once. Agree them with the vendor
and keep them fixed until the annual review. Each review period, save a
copy and complete Sections 3, 7, 9, 10 and 11.

This scorecard records how [Vendor name] (“the vendor”) performed
against the contract named in Section 2 during the review period in
Section 3. [Organization name] (“we”, “us”) uses it to:

  • give the vendor clear, regular feedback against agreed targets
  • agree corrective actions where performance falls short, and track
    them until they’re closed
  • inform decisions about [renewal, changes in scope and future
    sourcing]

In scope: [The products and services this scorecard
covers, e.g. the [product] subscription, implementation services under
SOW [number], and support.]

Out of scope: [Anything not covered, e.g. services
bought under a separate contract.]

This scorecard measures performance. It does not change the contract.
Where the contract sets service levels, service credits or other
remedies, the contract terms apply.

Public bodies may have their own rules for recording a
contractor’s performance and for using it in later awards. Check with
your procurement office before you rely on this format.

2. Vendor and contract
details

Item Details
Vendor legal name [Legal name]
Products or services in scope [Description]
Contract reference [Contract number, order form or SOW number]
Contract start and end dates [Start date to end date]
Renewal or notice date [Date by which we must give notice of non-renewal, if any]
Service level schedule [SLA document or contract schedule, and version]
Annual contract value [Amount, optional]
Vendor tier [Strategic / Important / Routine]
Vendor account manager [Name, title, email]
Our vendor manager (owns this scorecard) [Name, title, email]
Our business owner [Name, title, email]

The vendor tier sets how often you review the vendor. See Section
12.

3. Review period and
participants

Item Details
Review period [Quarter and year: start date to end date]
Scorecard status [Draft / Final], [date]
Data due from the vendor [Date]
Draft scorecard sent to the vendor [Date]
Review meeting [Date, time, location or meeting link]
Previous overall score [Score from the last period, or “First review”]
Name Organization Role in this review
[Name] [Organization name] Vendor manager: consolidates the scores and chairs the review
[Name] [Organization name] Business owner: scores [categories]
[Name] [Organization name] [IT / security / finance]: scores [categories]
[Name] [Vendor name] Account manager
[Name] [Vendor name] [Service delivery manager / support lead]

Each evaluator scores only the KPIs they have evidence for. Score
independently first, then agree a single score for each KPI before the
draft goes to the vendor.

4. Scoring scale

Every KPI is scored from 1 to 5 using the definitions below. For KPIs
with a measured result, Section 5.3 sets the results that earn each
score. Use whole numbers.

Score Rating Meaning
5 Excellent Well above target throughout the period, as defined in Section 5.3.
No issues needed our involvement.
4 Good Above target for the period. Any problems were minor, and the vendor
fixed them without our involvement.
3 Meets target Met the target for the period. Any problems were fixed within the
agreed time.
2 Below target Missed the target, or met it only because we intervened. Corrective
action required (Section 9).
1 Unacceptable Well below target, as defined in Section 5.3, or a serious failure
such as [a priority 1 incident handled outside the SLA, or a security
notification made late]. Corrective action required (Section 9), and
escalation if it’s a critical KPI (Section 8).

If there was nothing to measure for a KPI in the period, for example
no releases, mark it N/A and leave it out of the overall score (see
Section 7.2).

Qualitative KPIs, such as communication, use the same
definitions. Support every score of 1, 2 or 5 with a dated example in
the comments, so the vendor can see what it’s being scored on.

5. KPI categories and
measures

Choose two or three KPIs per category and delete the rest. Every
target should come from the contract, the SLA or the statement of work.
Agree the targets, thresholds and data sources with the vendor before
the first review period starts.

5.1 KPIs for any vendor

Category Example KPIs How to measure
Quality Defect or rejection rate; rework required Items or deliverables rejected or reworked ÷ total delivered in the
period
Delivery On-time delivery; complete and accurate orders Orders, deliverables or milestones delivered by the agreed date ÷
total due
Cost and commercial Invoice accuracy; prices match the contract Invoices paid without correction ÷ invoices received; any charge
above the contract price
Service and support Responsiveness; time to resolve issues Time to acknowledge and to resolve requests, against the times in
the contract
Compliance and risk Contract obligations met; required documents current Obligations met on time (reports, insurance certificates, audits) ÷
obligations due
Relationship Communication; account management; improvement ideas Evaluator rating against the scale in Section 4, with dated
examples

5.2 KPIs for a
software or IT services vendor

Use these for a SaaS, software or managed IT services vendor,
alongside any from Section 5.1. Section 6 shows which category each one
counts toward. Replace every target with the figure in your
contract.

KPI How to measure Data source Target
SLA attainment (availability) Monthly availability, calculated exactly as the SLA defines it,
including its exclusions. Count the months the target was met.		 Vendor’s SLA report, checked against our own monitoring [SLA target]% in [every month of the period]
Project and change delivery Milestones and change requests accepted by the agreed date ÷ total
due		 SOW plan and acceptance records [X]% on time
Release quality Production defects found after each release, by severity; rollbacks
and emergency fixes; release notice given as the contract requires		 Our defect log and change records; vendor release notes No more than [X] severity 1 or 2 defects per release; notice [X]
days before release
Incident response and resolution Incidents responded to and resolved, or worked around, within the
SLA times for their priority ÷ total incidents; root cause reports on
time, where the contract requires them		 Our service desk records and the vendor’s incident reports [X]% within SLA for priority 1 and 2; root cause report within [X]
business days
Support responsiveness Time to first response and to resolution for tickets that aren’t
incidents; tickets open longer than [X] days		 Support portal ticket report First response within [X] business hours; [X]% resolved within [X]
business days
Security and compliance Security incidents affecting our data notified within the contract
time; critical vulnerabilities fixed within the agreed time; required
audit reports or certifications, such as a SOC 2 report or ISO/IEC 27001
certificate, kept current		 Vendor notifications and audit reports; our security team’s
review		 All notifications within [X] hours; critical fixes within [X] days;
reports current

5.3 Score thresholds

For each measured KPI, set the results that earn each score
before the period starts. Put the contract target at score 3. For KPIs
where lower is better, such as defects, reverse the direction. The first
row shows the format only.

KPI 1 2 3 4 5
[e.g. Incidents resolved within SLA] [Below A%] [A% to below B%] [B% (target) to below C%] [C% to below D%] [D% or more]
[KPI] [Result] [Result] [Result] [Result] [Result]
[KPI] [Result] [Result] [Result] [Result] [Result]

6. Weights

Weights show what matters most in this contract, and they must
add up to 100. The figures below are an example only. Set your own
before the first review period, and change them only at the annual
review.

Category Weight KPIs in this category (from Section 5)
Quality [20] [e.g. Release quality]
Delivery [25] [e.g. SLA attainment; project and change delivery]
Service and support [20] [e.g. Incident response and resolution; support responsiveness]
Cost and commercial [10] [e.g. Invoice accuracy]
Compliance and risk [15] [e.g. Security and compliance]
Relationship [10] [e.g. Communication and account management]
Total 100

Split each category’s weight across its KPIs, equally unless one
matters more, and enter the KPI weights in Section 7.2.

7. Scorecard

7.1 KPI results

Complete one row per KPI. The example rows use KPIs from Sections
5.1 and 5.2; replace them with your own. Attach or link the data behind
each result.

KPI Target Actual this period Score (1 to 5) Evidence and comments
SLA attainment (availability) [Target] [Result] [Months met; SLA exclusions applied]
Project and change delivery [Target] [Result]
Release quality [Target] [Result]
Incident response and resolution [Target] [Result]
Support responsiveness [Target] [Result]
Invoice accuracy [Target] [Result]
Security and compliance [Target] [Result]
Communication and account management [e.g. Monthly service report on time; escalations acknowledged
within [X] hours]		 [Result] [Dated examples]

7.2 Weighted score

Weighted score = score × KPI weight ÷ 100. For example, a score
of 4 on a KPI weighted 15 gives a weighted score of 0.6. The overall
score is the total of the weighted scores, out of 5. If a KPI is N/A
this period, divide the total weighted score by the total of the weights
you used, then multiply by 100.

KPI Category Score KPI weight Weighted score
SLA attainment (availability) Delivery [15]
Project and change delivery Delivery [10]
Release quality Quality [20]
Incident response and resolution Service and support [12]
Support responsiveness Service and support [8]
Invoice accuracy Cost and commercial [10]
Security and compliance Compliance and risk [15]
Communication and account management Relationship [10]
Total 100 [Overall score out of 5]

7.3 Summary

Item This period Last period
Overall score (out of 5)
Rating band (Section 8)
KPIs scored 1 or 2 [List] [List]
Critical KPIs scored 1 or 2 (Section 8) [List, or “None”] [List, or “None”]
Open corrective actions (Section 9) [Number] [Number]

Summary of the period: [Two or three sentences: what
went well, what didn’t, and the main action agreed.]

8. Overall rating bands and
actions

Set the bands and actions before the first review period, and
check that each action is one the contract allows. Service credits,
formal notices and termination rights come from the contract, not from
this scorecard, so involve procurement or legal before you rely on
one.

Overall score Rating Action
[4.5] to 5.0 Excellent Thank the vendor in writing. Consider it for [renewal on current
terms / expanded scope].
[3.5] to below [4.5] Good Continue. Track any KPI scored 1 or 2 in Section 9.
[3.0] to below [3.5] Meets target Continue. Agree improvement actions for every KPI scored 1 or
2.
[2.0] to below [3.0] Needs improvement The vendor sends a corrective action plan within [10] business days.
Review progress [monthly] until the overall score is back to [3.0] or
above. [Apply service credits where the contract provides them.]
Below [2.0] Unacceptable Escalate to [our executive sponsor] and the vendor’s [executive
contact] within [5] business days. [Give formal notice under clause [X]
of the contract.] Review the options the contract allows, such as
[reducing scope, re-sourcing or not renewing].

These rules apply whatever the overall score:

  • Critical KPIs. [Security and compliance] [and SLA
    attainment] are critical KPIs. A score of 1 on a critical KPI triggers
    the “Unacceptable” actions, and a score of 2 triggers the “Needs
    improvement” actions.
  • Any score of 1. Every KPI scored 1 needs a
    corrective action in Section 9.
  • Repeat results. [Two] periods in a row in “Needs
    improvement” trigger the “Unacceptable” actions.
  • Recovery. The vendor leaves “Needs improvement”
    when [the overall score is [3.0] or above and every related corrective
    action is closed].

9. Issues and corrective
actions log

Log every issue behind a score of 1 or 2, and any other problem
raised at the review. Include actions on our side, such as approvals or
data the vendor is waiting for. Carry open items forward into the next
period’s scorecard.

Ref Issue and KPI Corrective action Owner Due date Status
[CA-01] [e.g. Priority 1 incidents resolved outside the SLA (incident
response and resolution)]		 [e.g. Vendor sends a root cause analysis and an updated escalation
process]		 [Name, vendor] [Date] [Open / In progress / Closed on [date]]
[CA-02] [e.g. Test data for the next release not provided (release
quality)]		 [e.g. We provide the test data set] [Name, our organization] [Date] [Status]
[Ref] [Issue and KPI] [Action] [Name, organization] [Date] [Status]

10. Vendor comments

The vendor completes this section before the review meeting. Keep
the vendor’s comments in the final version, even where we disagree with
them.

Item Vendor response
Comments on the scores and the data
Factors outside the vendor’s control that affected the results
Actions the vendor is already taking
What the vendor needs from us
Planned changes next period, such as releases, staffing or
roadmap

11. Sign-off

By signing, both parties confirm that this scorecard was reviewed at
the meeting on [date] and that the actions in Section 9 were agreed.
Signing doesn’t mean the vendor accepts every score. Its views are
recorded in Section 10.

Role Name Signature Date
Vendor manager, [Organization name]
Business owner, [Organization name]
Account manager, [Vendor name]
[Executive sponsor, if the review was escalated]

12. Review schedule

Match the frequency to the vendor tier in Section 2. For example:
quarterly for strategic and important vendors, once a year for routine
ones, and monthly while a corrective action plan is open.

Review Period covered Vendor data due Draft scorecard to vendor Review meeting
[Quarter 1] [Start date to end date] [Date] [Date] [Date]
[Quarter 2] [Start date to end date] [Date] [Date] [Date]
[Quarter 3] [Start date to end date] [Date] [Date] [Date]
[Quarter 4] and annual review [Start date to end date] [Date] [Date] [Date]

At the annual review, also:

  • check that each KPI, target, threshold and weight still fits the
    contract, and agree any changes for the next year
  • look at the trend across the year and any corrective actions still
    open
  • feed the results into the [renewal decision, due by the notice date
    in Section 2]
  • update Sections 4 to 6, 8 and 12 and the KPI rows in Section 7, and
    send the vendor the new version before the next period starts

Save each period’s final scorecard to [location], so the full history
is available at renewal.

Frequently asked questions

What is a vendor scorecard?

A vendor scorecard is a regular report card for a supplier you already use. It rates the vendor’s performance over a set period, such as a quarter, against KPIs and targets taken from the contract, combines the scores using agreed weights, and records the actions that follow. A supplier scorecard and a vendor performance scorecard are the same thing.

What should a vendor scorecard include?

The vendor and contract it covers, the review period, a scoring scale with a defined meaning for each score, and the KPIs with their targets, weights and how each one is measured. It also needs the results for the period, an overall rating and the action that rating triggers, a log of issues and corrective actions, the vendor’s comments and sign-off. This template includes all of them.

How do you calculate a vendor scorecard score?

Score each KPI from 1 to 5 using thresholds agreed before the period starts. Multiply each score by the KPI’s weight and divide by 100, then add the results to get an overall score out of 5. For example, a KPI scored 4 with a weight of 15 adds 0.6 to the total. Compare the overall score with your rating bands to see what action follows.

How often should you review a vendor scorecard?

Quarterly is a sensible default for vendors your operations depend on: often enough to catch problems before they grow, with enough data in each period to mean something. Review monthly while a corrective action plan is open, and once a year for routine, low-risk vendors. Revisit the KPIs and weights themselves once a year, ahead of the renewal decision.

What is the difference between a vendor scorecard and a vendor evaluation matrix?

A vendor evaluation matrix compares several bidders side by side during selection, scoring their proposals, demos and references against weighted criteria. A vendor scorecard rates one vendor you’ve already hired against its contract targets, every review period. You use the matrix once, to choose a vendor, and the scorecard for the life of the contract.

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