What does supplier evaluation mean?

Supplier evaluation is a systematic assessment, comparable to a rating, which is intended to evaluate the performance of suppliers or service providers on the basis of previously defined characteristics. It is primarily carried out by the supplier’s customer in business-to-business and business-to-administration business relationships. The assessment of their suppliers is carried out by companies or public administration. In the business-to-consumer sector, consumers assess service providers (e.g. hotels), traders, retailers or mail order companies as part of the online assessment. However, online evaluations are less objective and more prone to error than supplier evaluations.

The supplier evaluation, which serves as the basis for the supplier audit, is intended to make performance transparent and comprehensible. In just-in-time production, adherence to precise delivery times is essential, meaning that delivery service and service level are important.

The supplier evaluation is based on certain evaluation criteria that are important for the assessment of the supplier. Evaluation criteria are statistical factors and changing factors. Statistical factors are delivery and payment terms, market share, market power, market behavior, pricing policy, negotiating power, product and service quality. Changing factors are customer requirements, customer orientation, readiness to deliver, ability to deliver, delivery service, delivery time, delivery reliability or service level.

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How Testify helps you digitize incoming goods inspections and supplier evaluations