Supplier Evaluation is a tool for evaluating supplier companies. Responses can be conveniently collected from one or multiple respondents, and the results are easy to compare.
Sourcing teams evaluate supplier companies in different ways and at different stages as part of developing supplier relationships. Noventia’s tools provide versatile options for different types of evaluations. The Supplier Evaluation tool can be used to conduct a wide range of evaluations using a structured template for recording the results. This provides comparable information about a supplier’s suitability for collaboration and helps identify potential gaps and areas for improvement.
Suppliers can be evaluated regularly throughout the supplier relationship, for example on a quarterly basis. Scorecard evaluations provide a practical way to measure supplier performance. Reporting makes it possible to track development across different areas. Results can be compared across different time periods or, for example, with the results of other suppliers in the same category.
Supplier evaluation is an essential part of supply chain management. The Supplier Evaluation tool enables centralized data collection and storage, automated reporting and versatile comparisons.
How to use Supplier Evaluations
Starting the Evaluation
Select the supplier to be evaluated and a suitable evaluation template from your template library. The template includes the areas to be evaluated, the relevant questions and any necessary instructions. Invite the selected respondents to provide their evaluations.
- The sourcing team can create evaluation templates tailored to its own needs, making it faster to launch new evaluation rounds.
- The tool is highly flexible, and evaluation templates can be created for a wide range of needs.
- The tool makes it easy to keep evaluations consistent and comparable.
Responding
Evaluators provide their responses to the questions in the evaluation form. Completing the browser-based form is straightforward and easy.
- One or multiple respondents can be invited to participate, for example from the sourcing team, production or quality management. External evaluators, such as representatives of the company’s customers, can also be invited to provide their evaluations.
- The progress of responses can be easily monitored in real time.
- The tool enables users to send messages, such as deadline reminders.
Results and Summaries
Once the evaluation is complete, the results are clearly displayed in the supplier’s profile. Results can be reviewed as a whole or by individual areas, such as delivery reliability, expertise or service quality.
- The tool enables supplier performance to be tracked over time.
- Results can be compared with other suppliers in the same category.
- Results can be shared through the Supplier Portal to support the development of supplier relationships.
Supplier Evaluation is an effective way to collect feedback from multiple respondents on supplier performance. The tool helps keep evaluation data consistent and therefore comparable. Automatically generated charts make it faster to compile the data and interpret the results.
Using the tool increases transparency both within the sourcing team and in collaboration with suppliers. Supplier relationships can be developed based on feedback on supplier performance, and any changes can be addressed at an early stage.
Supplier Evaluation enables large amounts of data to be collected and compared across different time periods and supplier categories. The tool is flexible and suitable for a wide range of use cases.
Benefits
Comparability
When Supplier Evaluations are conducted using the company’s own structured templates, all data remains comparable. Collecting evaluations from multiple respondents improves the reliability of the data.
Monitoring Over Time
Supplier Evaluations can be conducted regularly to track supplier performance across different time periods. Repeatable evaluations provide continuity and enable supplier relationships to be developed based on the results.
Transparency
The evaluation summary can be shared with the supplier through the Supplier Portal. The tool supports transparent development of supplier relationships by giving suppliers access to feedback and the opportunity to address any areas for improvement identified in the evaluation.
Reporting
The Supplier Evaluation tool automatically provides a summary and chart of supplier performance. Automated reporting minimizes errors caused by manual work.
Minimizing Manual Errors
When the tool handles data formatting, storage and the creation of summaries, errors caused by manual data processing and compilation can be minimized.
Examples of Supplier Evaluation
Many companies use different approaches to evaluate suppliers in different situations. Sometimes, qualitative feedback is collected and discussed with the supplier in collaboration meetings. In other cases, more structured data is collected from a large number of respondents on various aspects of supplier performance.
Supplier Evaluation provides a platform for conducting different types of evaluations, collecting data and reporting results. Here are a few examples of typical evaluations that can be conducted using the tool.
The content of Supplier Evaluations, including the areas to be evaluated, response scoring and question structure, can be tailored to the specific needs of the organization. At their simplest, evaluations can consist of quick star ratings, for example from one to five stars for each evaluation category. More comprehensive evaluations can include written feedback and, for example, suggestions for improvement.
The sourcing team, production and functions such as quality management often include many people who work directly with suppliers. Different teams often have valuable insights that can be used to develop supplier relationships. With Supplier Evaluation, all relevant people can be easily invited to provide their own feedback on the supplier relationship.
A supplier may sometimes be directly involved in delivering the end product or service and therefore interact directly with the shared customer. Supplier Evaluation can also be used to collect valuable feedback from customers on how well the collaboration is working. External evaluators can easily provide their evaluation by clicking a link.
Read more about this topic
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.
