Supplier Evaluation Definition
A supplier evaluation is the process of assessing a potential or existing supplier to determine whether they are capable of meeting the organization’s needs. The evaluation may consider factors such as quality, price, delivery, capacity, and service.
The purpose of supplier evaluation is to ensure that an organization selects and works with suppliers that are able to meet its requirements and deliver high-quality goods or services. A well-conducted evaluation can help to improve the relationship between an organization and its suppliers, leading to better quality and service. It can also help to avoid problems further down the line, such as delays in production or poor-quality products.
There are a number of methods that can be used to evaluate suppliers. These include questionnaires, on-site visits, audits, and reviews of financial statements. The most appropriate method will depend on the nature of the goods or services being supplied and the size and complexity of the organization.
