Supplier Evaluation
Supplier evaluation involves assessing and approving potential vendors through a defined quantitative and qualitative assessment process. Also known as supplier assessment, this process helps create a comprehensive list of vendors for required products and services. Besides looking for new suppliers, vendor evaluation checks existing vendors and ascertains their performance to drive improvement and reduce expenses. A well-designed and rigorous supplier evaluation and selection process is one way to identify and work with suppliers striving for zero defects.
Supplier analysis is an ongoing process under the aegis of the purchase manager in most organisations. It is usually employed as a screening process to shortlist suppliers who meet the company guidelines. Multiple steps are undertaken to complete this process to ascertain a vendor’s suitability accurately. Many organisations are now using software solutions to automate many aspects of supplier evaluation.
