For many companies, vendor evaluation was typically done by assessing traditional criteria, such as whether they produced products on time, of the right quality, and at the right cost. If the vendors say yes, keep doing the work until someone else can offer improvements in any of the key evaluation areas.

The relationship between suppliers and customers has become more complex, and many additional factors are now being considered when searching for suppliers and conducting the assessment. Analysis is done in terms of these factors and their effect on the supply chain, in addition to the more common elements of Cost, Quality and Delivery, and to many may seem complex. Fortunately, there are widely accepted performance criteria:

Efficiency

Although most companies still consider basic evaluation questions (QCD), many of them have begun to analyze efficiency based on other important information that is now covered in various sub-criteria. Unlike before, efficiency is no longer limited to whether the good was delivered on time and passed the quality requirement. In today’s business, a more holistic approach is needed. Is the ordering process easy? Was the order processing fast? These are some of the additional data required. In addition, post-order fulfillment processes are equally important. Questions such as: Were they punctual in the delivery of the invoices?; Was the invoice easily processed?

Sensitivity

This is another important criterion, how responsive is the provider to your demand. A good working relationship between buyer and supplier is now part of the evaluation process, as it basically shows the coordination required, particularly when unexpected demand and additional items arise.

Quality management

The quality control system, including the management tools used by the suppliers, is also evaluated if their system meets the customer’s standard. These are criteria that should not be omitted, some methodology should be put in place to ensure strict supplier compliance.

product range

This criterion is a key performance parameter as it will show, against business requirements, the range of products that the supplier can offer.

Technical Programming

This criterion is necessary as it will protect against variability in demand. An effective scheduling tool is very important to address these kinds of situations. Although it is sometimes considered rude to include the vendor in a review of programming tools and techniques; it will be worth your time and effort.

sustainability

This criterion is important in determining whether suppliers are environmentally responsible. It is a measure of the ability of suppliers to deal with existing environmental laws.