Supplier Rating System Definition
A supplier rating system is a process for assessing the performance of suppliers and identifying potential areas for improvement. The system typically includes a set of performance metrics, which are used to score suppliers on their performance. Suppliers are then ranked based on their score, with the highest-performing suppliers receiving the highest ratings.
The supplier rating system can be used to improve the quality of products and services, reduce costs, and improve supplier relations. It can also help organizations to identify and assess new suppliers. When implemented correctly, a supplier rating system can provide significant benefits to an organization.