In brief
Supplier evaluation is the systematic assessment of suppliers against fixed criteria such as quality, delivery reliability, response time, price and compliance.
Contents
What is Supplier evaluation?
Supplier evaluation provides a transparent basis for decisions on supplier selection, contract award, development or delisting. It is one building block of supplier management, which also covers strategy, contracts, collaboration and risk management. Without regular evaluation, such decisions often depend on the gut feeling of individual people.
Typical criteria are quality, such as complaint rate and incoming inspection results; delivery reliability in terms of date and quantity; response time to enquiries and disruptions; price and cost development; and compliance topics such as sustainability, data protection and adherence to legal requirements. The criteria are weighted and combined in a points system from which supplier classes can be derived. KPIs from the ERP system are supplemented by subjective assessments from the specialist departments.
In addition to ongoing evaluation, there is supplier selection before a business relationship begins and the supplier audit, in which the supplier's processes and quality management are checked on site or by questionnaire. For maintenance, response time, parts availability and the correctness of the parts supplied count in particular, as incorrect deliveries there directly prolong downtime.
In practice: maintenance and procurement
For MRO suppliers, it is advisable to measure not only delivery reliability but also the rate of correctly identified and delivered parts and the response time to spare parts enquiries. The results should be shared with suppliers regularly so that they can make targeted improvements.
Synonyms and abbreviations: supplier assessment · supplier rating · vendor evaluation · supplier scorecard · vendor rating
Frequently asked questions
Which criteria belong in a supplier evaluation?
Common criteria are quality, delivery reliability by date and quantity, response time, price and cost development, flexibility, and compliance topics such as sustainability and adherence to legal obligations. Which criteria count and how strongly depends on the category. For spare parts, availability and parts accuracy play a greater role than for standard materials.
How does scoring work in supplier evaluation?
Each criterion is given a weighting, for example as a percentage, and rated on a fixed scale. The weighted points produce an overall score, according to which suppliers are divided into classes, for example preferred, approved or to be developed. Clear measurement rules are important so that evaluations remain comparable.
What is the difference between supplier evaluation and supplier management?
Supplier evaluation measures the performance of individual suppliers against criteria. Supplier management is the broader framework: it covers strategy, selection, contracts, development, risk management and the termination of supply relationships. Evaluation provides the data basis for this, for example for award decisions or development meetings with suppliers.
What is a supplier audit?
In a supplier audit, the customer or an appointed auditor checks processes, quality management and, where relevant, sustainability aspects directly at the supplier, on site or by means of a structured questionnaire. Audits often take place before a business relationship begins, after quality problems or at fixed intervals for important suppliers.