Supplier evaluation and selection process has a critical role and significant impact on purchasing management in supply chain. It is also a complex multiple criteria decision making problem which is affected by several conflicting factors. The concept reviews the process of evaluating and approving potential suppliers by providing a description of the process and measurement methods for the assessment of current and potential suppliers.
The Checklist for Evaluation of Suppliers is a documented set of questions to ensure that new suppliers are properly reviewed for suitability to the company before purchases are made.
A supplier evaluation may involve:
- Visiting the supplier on-site
- Asking a series of probing questions about the supplier’s business
- Researching customer opinions of the supplier
To make this process clearer, it’s helpful to use an established model.