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A supplier evaluation is the process of assessing and approving potential suppliers through quantitative and qualitative assessments. The purpose is to compile a list of the best suppliers available.
The 10 Cs are criteria for assessing the suitability of a potential supplier. Use them as a checklist when deciding who to approach, and who to avoid....They are:Competency.Capacity.Commitment.Control.Cash.Cost.Consistency.Culture.More items...
Criteria for selecting a supplierprice.value for money.quality.reliability.responsiveness.flexibility.
Benefits of Supplier Evaluation process :1) Increase performance visibility.2) Remove hidden waste and cost drivers in the sustainable procurement.3) Leverage the supply base.4) Align customer and supplier business practices.5) Diminish risk factors.6) Improve the performance of the suppliers.1) Assessment of Risks.More items...?
Create specific performance criteria for tracking and evaluating your suppliers and vendors on a regular basismonthly, quarterly, and/or annually. Considerations include size of the company, number of certifications, quality management systems, complaint history, and financial stability.
What to Assess in a Supplier EvaluationProduction Capacity. All supplier evaluations should thoroughly appraise the supplier's abilities and limitations.Quality.Performance.Risk.Environmental Impact.
Supplier Performance Evaluation ChecklistStep 1: Establishing Performance Indicators.Step 2: Classifying Suppliers.Step 3: Centralizing and Integrating Data.Step 4: Developing a Solid Evaluation Approach.Step 5: Collaborating with Suppliers for Review/ Feedback.Step 6: Creating an Actionable Plan.
Supplier Performance Evaluation ChecklistStep 1: Establishing Performance Indicators.Step 2: Classifying Suppliers.Step 3: Centralizing and Integrating Data.Step 4: Developing a Solid Evaluation Approach.Step 5: Collaborating with Suppliers for Review/ Feedback.Step 6: Creating an Actionable Plan.
Competency. First, look at how competent the supplier is.Capacity. The supplier needs to have enough capacity to handle your company's requirements.Commitment. Your supplier needs to provide evidence that they are committed to high quality standards.Control.Cash.Cost.Consistency.Culture.More items...
Criteria are attributes that a buying organization values in its arrangements with suppliers. There are eight common supplier selection criteria, in no formal order: Cost. Quality & Safety. Delivery.