What is supplier evaluation?
Supplier evaluation is a structured assessment of performance and risk. Using the same criteria, scale, and data sources for every supplier makes results more comparable and less dependent on individual opinions.
Criteria and weighting
Price may include competitiveness and total cost, quality can include defects, delivery performance covers on-time and in-full supply, while risk includes financial stability, capacity, and supply exposure. Weights should reflect category requirements and total 100 percent.
Example
A supplier scores 4 for price weighted at 25 percent, 5 for quality at 30 percent, 3 for delivery at 25 percent, and 2 for risk at 20 percent. The weighted total is 3.65 out of 5.
From score to action
Use the total score together with the individual results. A good total can hide critical risk or weak delivery. Set targets, ownership, and deadlines for improvements and review at consistent intervals. Always document the measurement period, definitions, and evidence.
Calculate your own scenario
Use the free PurchaseKPI calculator and get the result immediately.
Supplier evaluation