You can’t take a supplier’s word for it when it comes to quality. A good supplier evaluation procedure can distinguish between a great supplier and one that flatters. Your supplier assessment should make a shortlist of suppliers you can work with. Moreover, a supplier evaluation procedure should add extra security with more detailed information about how the product is made.
We believe any supplier performance evaluation should focus on three main parts: administration, price and quality. First, our supplier assessment reviews a company’s admin. We review all documents from the supplier to analyze their management. Secondly, our supplier performance evaluation looks at price. Suppliers often give different prices for the same item so we review them based on other quotations. Our supplier assessment compares direct and indirect costs as well. Thirdly, we review the company’s certifications, local registration, testing agency certifications and product specific certifications as part of the supplier evaluation procedure. Due diligence is similar, but applies greater thoroughness that is only necessary for your final supplier choice.