Supplier evaluation tool helps in supplier management

Supplier evaluation is an essential part of many sourcing organizations’ supply chain management. Different evaluations processes have many common challenges.

Supplier evaluation is an essential part of many sourcing organizations’ supply chain management. The supplier may be evaluated, for example, based on their quality, accuracy on deliveries or development capabilities. Sometimes a supplier may be evaluated on a numerical scale and sometimes it is more important to collect open feedback or development ideas in order to develop the cooperation with the supplier.

Regardless of whether the evaluation is done on a jointly agreed structured score card, or ideas collected randomly on a piece of paper, the challenges are often the same.

  • It is difficult to generate evaluation data if the experts who should give their own evaluations do not know who they should evaluate, by what indicators, and when and where the evaluation data should be provided.
  • The person responsible for supplier collaboration (e.g., category manager) should be able to form the most comprehensive picture possible of the supplier’s performance, but if data is not available, the overall picture is based only on his or her own perception.
  • The more evaluation data can be collected, the more reliable the results can be considered.
  • On the other hand, a positive problem also arises from the fact that the more data is collected, the more work there is to process it.
  • Reporting is often laborious and prone to manual processing errors.

The supplier evaluation tool allows you to create company-specific evaluation templates. Templates can be made for different purposes, but in a nutshell, your team has mutually agreed evaluation criteria available whenever needed.

For persons responsible for submitting the evaluations, supplier evaluation tool collects all your own evaluations and their schedules in one place. You will be notified via email when there is a request for new evaluation and the answers will be given directly to the tool – no more Excel files per email.

It is easy for the person in charge of supplier evaluation to follow the progress of the evaluation and, for example, to remind respondents who have not yet given their own evaluations. There can be one or ten respondents, but regardless of the number, all evaluations are stored in the same place and always in the requested format. The summaries are automatic and available immediately after the end of the response time.

Old evaluation results are automatically saved in the supplier’s profile, and when the same supplier has been evaluated two or more times, the report can also be used to monitor the supplier’s performance over time. If desired, the information in the report can also be shared directly with the supplier, for example in mutual development meetings.

Getting started with the supplier evaluation tool is very easy: if you already have some sort of supplier scorecard, you can transfer its evaluation metrics directly to the electronic tool.

If evaluation criteria or questions have not yet been considered, Noventia's experts will be happy to help build the first evaluation templates. After this, it is time to open the first supplier evaluations!


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