Supplier evaluation

Supplier evaluation is a process applied to current suppliers in order to measure and monitor their performance for the purposes of reducing costs, mitigating risk and driving continuous improvement. Our evaluation model is extremely flexible with company needs in focus. Based on the information obtained via the evaluation, a supplier is scored and rated.

Some benefits of supplier evaluation

  • Increase performance visibility - When companies do not know the facts about how their suppliers are performing, supplier management tends to be based on guesses. Start measuring suppliers performance can help with this problem.

  • Discover hidden waste and cost drivers - The supply chain is full of potential risks. Some of these risks can be avoided by better communication between customers and suppliers. By better understanding supplier performance and supplier business practices, customers can help suppliers drive waste and inefficiency out of the business, resulting in higher-quality suppliers and lower costs.

  • Optimize your supply base - By measuring supplier performance, a company can set a threshold for its suppliers that can lead to higher-quality results. Companies can better plan new products and services based on a good understanding of its suppliers’ capabilities and performance levels.
  • Improve relations with suppliers - Suppliers should run their business in alignment with their customers: share the same business ethics, expect similar standards of excellence, show commitment and conduct continuous improvements.

  • Mitigate risk - Insight into supplier performance and business practices helps reduce business risks (both operational and financial), particularly given companies increasing dependence on its key suppliers.

  • Improve supplier performance - While simply measuring performance has a positive effect, supplier evaluation can be most effective when it leads to continuous improvement activities and actual supplier performance improvement.