What is Supplier Evaluation?
Supplier evaluation is the process of evaluating the performance of a company's suppliers and determining their suitability for continued business. Supplier evaluation is typically conducted on a regular basis, and may involve collecting data on the supplier's performance in areas such as quality, cost, delivery, and service. This data may be gathered through a variety of methods, such as on-site inspections, surveys, and financial analysis.
The goal of supplier evaluation is to identify areas where the supplier is meeting or exceeding the company's expectations, as well as areas where there is room for improvement. Based on the results of the evaluation, the company may choose to continue doing business with the supplier, modify the terms of the relationship, or terminate the relationship and find a new supplier.
Supplier evaluation is an important part of effective supplier management, as it helps companies to ensure that they are receiving high-quality goods and services from their suppliers, and to identify opportunities for improvement.