Vendor Rating for New, Potential Vendor

12manage is looking for contributors...

Vendor Rating > Forum Log in

Vendor Rating for New, Potential Vendor
Luigi Visiello
I'd like to understand how should one can create a first vendor rating procedure for new suppliers (not yet present into the supplier list). It should be useful to use not only financial KPI (debtness ratio, turnover, cash to cash cycle, etc..), but also operational ones. Could someone give me an idea?
Thanks all for sharing comments

Jay Deragon
Doc Searls is running a project at Harvard called VRM (Vendor Relationship Management) which addresses all of the above and a lot more. You can view is ongoing efforts here I suggest we all support his vision and make it a reality. VRM will transform how markets behave and disrupt old business models.

Supplier Evaluation, Rating a Potential Vendor: ISO 9001
Madan Gopal Agarwal, Member
A generic system for any Sector is ISO 9001 (Specific for Auto is ISO / TS 16949).
- Identify Critical Parameters
- Create Questionnaire on Business Strategy / Plan / Growth Perspective, Financial Capability and Soundness, Technical Competence, Managerial strength etc. of the Supplier
- Define weightings for each & Minimum Qualifying marks
- Discuss with Supplier
- Rate the Supplier
- Calculate the overall rating and compare with minimum marks.
In case of gap, discuss with Supplier, work out an improvement plan along with Time-frame and responsibilities.
Re-audit at agreed time and continue the process till result is realised. This can be one of the ways.

Vendor Rating Based on Unique Criteria and KPIs
Ismail Kashkash
Additional to standard vendor evaluation and selection procedures, each organization should have a selection criteria unique to its processes and evaluation KPIs for each vendor. Your business results should drive these criteria and KPIs.

Vendor rating
Vendor rating has come a long way in Indian industries. BHEL uses one of the best vendor rating methods and continuously upgrades it. In my opinion, if vendor rating has to succeed the procurers have to continuously feed the vendors about their performance giving them enough scope to know about their performance and at the same time making them understand where and how they can improve.

Vendor Rating
Vinod, Member
Among other things, vendor rating includes the timely delivery, and quality in terms of PPM, Lead Time for Delivery.

Vendor Rating - New
Colin Downey, Member
I have use parameters such as Suppliers Distribution (Wide/Narrow), Infield sales support, Marketing and Promotional support, Delivery in full on time to review into the Maintenance, Repair & Operational industry. You must identify what it is you are wanting, i.e. the end result, before starting any review so using a scaling grid may also be useful.

Important about vendor rating
Ankit Agrawal, Member
Now a days vendors are not only the business parties but they are the business partners and very important process owner. So to keep overall process smooth and error free regular vendor evaluation is needed. there are 5 main factors which are need to be evaluated, they are- 1. Price offered by the vendor 2. Quality offered by the vendor 3. agility of the vendor 4. Error rate of the vendor and 5. further capability of the vendor On these basis vendors are given rates and from the aggregate score vendor with highest score is prefered and praised.

Supplier evaluation
Susana Amezcua Rodriguez, Member
Excellent information for me as a quality consultant

Vendor Rating
Arne Antos
I think it boils down to did you get value for what you paid. That would include timely shipment and condition of item upon receipt.

Objective Vendor Rating in Developing World
Christopher Odida, Member
Yes this can be achieved but a lot professionalism will be very vital, otherwise vendors who are good in canvassing might be the beneficiary of the whole exercise.

Vendor Rating in Developing Countries
Bernadette, Member
Vendor rating is not common in the most developing countries because the process is entangled by bid rigging and collusive behaviour. Most vendors are related in one way or another and they will offer the same service. If poor it will all be poor service.


  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Vendor Rating
Best Practices

Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 20-7-2018. All names of their owners.