Viskas, ko reikia parduoti internetu

Set up an online store in minutes to sell on a website, socialinė žiniasklaida, or marketplaces.

One page checkout system

How to Evaluate Supplier Performance

10 min read

A company is only as strong as its supply chain. Without reliable suppliers, things like marketing and branding mean very little. If you don’t have products to sell to customers, there’s simply no way to do business. So it would be an understatement to say that tiekėjų play an important role in the success of a business.

For business owners, this presents a bit of risk if you’re not careful. Suppliers are typically third-party or independent companies that do not work directly for retailers. Kaip tokia, certain aspects of the supply chain are beyond a business’s control.

Beyond suppliers themselves, other external factors can derail a supply chain. Weather conditions and natural disasters, as well as economic factors, can also interfere with manufacturing and shipping.

But just because there are potential risks involved when it comes to overseeing your supply chain, it does not mean your business is powerless. Businesses can mitigate these risks by periodically conducting a thorough supplier evaluation. This guide will go over important factors to look for in a supplier evaluation, as well as strategies for conducting a supplier performance evaluation.

What to Look For In A Supplier Evaluation

The first question to answer is, “what criteria do you use to evaluate a supplier?” There are several key factors to consider during an evaluation. These factors should all be measurable and easy to understand. This makes it easier to provide feedback to your suppliers, as well as make judgments about your supply chain needs. You can use whatever internal ranking system you want (numbers, letter grades, ir tt). Just be sure that your ratings are consistent and easy to understand.

Su tuo pasakius, here are some of the most important supplier evaluation criteria to use during your next review.

Production capacity

One of the most important questions to ask is, “Can the supplier meet the production demands of our business?” One of the fundamental reasons retailers rely on suppliers is that they are capable of handling large-scale production. A supplier who is unable to keep up with the demands of your business is not well-suited to work for you.

Risk and risk response

There is always some degree of risk for any business. Suppliers must be equipped to respond to risks and emergencies quickly and consistently. Kaip tokia, you should place a strong emphasis on your supplier evaluation risk rating when conducting a review.

The risk rating should factor in not just how suppliers respond to risks, but what risks your suppliers are most vulnerable to.

Pavyzdžiui, a supplier in a region that occasionally experiences adverse weather conditions will be vulnerable to shipping delays. These factors may be beyond the supplier’s control, but they absolutely should be factored into your evaluation.

Žinoma, a supplier’s risk management and risk response plans are also key to determining the supplier evaluation risk rating.

Environmental impact

Environmental impact is a top concern for many consumers and businesses alike. Minimizing environmental damage through manufacturing and supply chain practices is one of the most effective ways to reduce your company’s environmental impact. Kaip tokia, supplier evaluations should always analyze a supplier’s resource consumption and sustainability practices.

What resources does the supplier use, and how do they obtain them? Does the supplier use recycled materials? What kind of energy do they use in both manufacturing and shipment? How does the supplier handle harmful chemicals? These are all important questions to address during an evaluation.

The standard system for measuring environmental impact across industries is ISO 14001.

Product quality

Pagaliau, the concern of product quality is also very important during a supplier evaluation. Even if every other box is checked, poor-quality manufacturing can negate it all. You should set clear expectations about product quality before agreeing to work with any supplier. Your supplier evaluations, then, should assess whether or not those standards are being met.

For more about measuring production quality, Skaityti apie ISO 9001:2000 quality management systems. This certification system is considered the industry standard for supplier performance evaluation.

How Do You Evaluate a Supplier?

Now you know what criteria to use during a supplier evaluation. But what is the first step in supplier selection and evaluation? How should you go about conducting an evaluation? Here are some basic steps to follow to ensure that your supplier performance evaluation is effective.

Clearly define criteria

The above criteria are important to have when conducting your evaluation. But it is also important to make sure your supplier understands the criteria as well. Having an understanding of the criteria allows the supplier to better understand your goals and needs. It also gives them a better chance to offer feedback about the evaluation.

Pagaliau, having clearly defined criteria can make the entire process run more smoothly. Because the supplier understands how they will be evaluated, they will be well-prepared when the time comes.

Consult with suppliers when setting supplier evaluation criteria

Before conducting your evaluation, you should also discuss the criteria with your suppliers. This allows them to offer feedback about how they will be assessed or provide any additional information.

Many companies provide a pre-evaluation questionnaire or survey for their suppliers. These questionnaires can be used to measure both factual and subjective aspects of the supplier’s performance. The purpose is to provide the suppliers themselves with an opportunity to evaluate their performance and expectations.

Offer feedback and listen to suppliers

Once the supplier evaluation is complete, you should share the results with your suppliers. When sharing results, it is also customary to offer feedback for areas of improvement or success.

This helps suppliers make any necessary adjustments to their supply chain or manufacturing practices. Positive feedback is also appreciated as it lets the suppliers know that their good work is recognized and appreciated.

When offering feedback, it is also critical to give the supplier a chance to respond. They may be able to provide further insight into some of the challenges that may be impacting their performance. Your supplier performance evaluation should never be closed off or one-sided.

There are two main objectives to consider when conducting a supplier review. Pirmas, identify areas of risk and vulnerability in your company’s supply chain. And second, to provide opportunities for improvement to your suppliers.

Assign the right team members to conduct the review

Pagaliau, the person assigned to conducting the supplier evaluation should know what they are doing. Idealiu atveju, you will have a purchasing specialist conduct the review. Why should a purchasing supplier evaluate supplier performance? There are a couple of reasons.

Pirmas, they likely already have an established relationship with the supplier. The purchasing specialist will also have an in-depth understanding of your company’s supply needs. This means they will know what to look for when assessing product quality, production capacity, and supply chain risks.

Kai padaryta teisingai, a supplier performance evaluation can improve results and lead to better profits. These evaluations are an advanced step to take when running a business. If you are just starting your business, there are other steps to consider before you get to your supplier performance evaluations.

To learn more about the basics of supplier relations, perskaitykite Ecwid vadovą finding suppliers for your business. Arba, read about our favorite business management tools that you can use for your online business.



Parduodu internetu

With Ecwid Ecommerce, you can easily sell anywhere, visiems – internete ir visame pasaulyje.

About the author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

Ecommerce that has your back

So simple to use – even my most technophobic clients can manage. Easy to install, quick to set up. Light years ahead of other shop plugins.
I’m so impressed I’ve recommended it to my website clients and am now using it for my own store along with four others for which I webmaster. Beautiful coding, excellent top-notch support, great documentation, fantastic how-to videos. Thank you so much Ecwid, you rock!
I’ve used Ecwid and I love the platform itself. Everything is so simplified it’s insane. I love how you have different options to choose shipping carriers, to be able to put in so many different variants. It’s a pretty open e-commerce gateway.
Easy to use, prieinama kaina (and a free option if starting off). Looks professional, many templates to select from. The App is my favorite feature as I can manage my store right from my phone. Highly recommended 👌👍
I like that Ecwid was easy to start and to use. Even for a person like me, without any technical background. Very well written help articles. And the support team is the best for my opinion.
For everything it has to offer, ECWID is incredibly easy to set up. Highly recommend! I did a lot of research and tried about 3 other competitors. Just try ECWID and you'll be online in no time.

Your ecommerce dreams start here

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Your Privacy

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. Tačiau, blocking some types of cookies may impact your experience of the site and the services we are able to offer. More information

More information

Strictly Necessary Cookies (Always active)
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Performance Cookies
These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site. They help us know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, we will not know when you have visited our site.