Abstract
The evaluation and selection of suppliers are important tasks in any organisation. Each organisation needs to have a supplier evaluation matrix or model in place. The goal of this article is not only to give an overview of supplier performance evaluation techniques but also to present an example of such a supplier evaluation matrix used in practice. The article shows that suppliers’ qualities, strategies and abilities affect a buying company’s business. Reliable suppliers can help to develop stabile, long-term relationships that will be beneficial to both parties. Effective sourcing and purchasing require high-quality suppliers.
Highlights
Problem statementSupplier evaluation is an issue of strategic importance for any company
Supplier evaluation criteria focused on delivery performance, quality and price
Supplier performance evaluation provides a customer with a quantifiable measure and the status of the supplier and the possible influence a relationship with the supplier could have on its business‘ success
Summary
Supplier evaluation is an issue of strategic importance for any company. Measuring supplier performance is essential to ensure a well-functioning supply chain and company competitiveness. The goal is to improve performance mainly of the key suppliers. Understanding supplier performance will both prevent risk and improve cooperation. Evaluation is necessary to know what the supplier is doing well in each area of action. Careful selection of evaluation criteria is important. There have been many approaches to evaluating supplier performance. Supplier evaluation criteria focused on delivery performance, quality and price. Today, we see both in practice and in literature several criteria focusing on other areas, such as relationship of partners and continuous improvement
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