Category: Vendor Evaluation

A few ways by which a vendor can be evaluated are listed below- Categorical Method Weighted point Method Cost Ratio Method

Checklist for evaluation of potential supplier – 1. Competency: Capabilities assessment – measurement against our requirement. 2. Capacity: Supplier’s available resources to meet our orders (staff, equipment, storage, and available materials.) 3. Commitment to Quality: Commitment to high quality standards. ISO 9001 or Six Sigma etc. 4. Financial Health – Cash-positive firms are in a […]

Supplier Scorecard is we used to measure suppliers, and to give qualified or certified status to suppliers. Ideally, The best scoring suppliers per commodity group would get more share in the order. 1) Quality Monthly DPMO (defective parts per million opportunities) = Monthly Quantity Rejected ÷ Monthly Quantity Received x 1,000,000Rolling three-month DPMO to track […]