Supplier Appraisal Definition
A supplier appraisal is the process of assessing a potential supplier’s ability to provide goods or services in a timely and cost-effective manner. The goal of a supplier appraisal is to identify any risks associated with working with a particular supplier, and to determine whether the supplier is likely to be able to meet the needs of the buyer.
There are a number of factors that must be considered during a supplier appraisal, including:
-The quality of the goods or services offered by the supplier
-The supplier’s reputation
-The supplier’s financial stability
-The supplier’s manufacturing capabilities
-The supplier’s delivery record
A thorough supplier appraisal will help buyers make informed decisions about which suppliers to do business with, and can ultimately help reduce supply chain risk.
