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
  • Fact-checking
  • Researching customer opinions of the supplier

To make this process clearer, it’s helpful to use an established model.