Supplier Evaluation often
follows a rigorous, structured approach using formal surveys. An effective
supplier survey have certain characteristics. First, the survey should be
comprehensive and include the performance categories considered important to
the evaluation and selection process. Second, the survey process should be
based on KPI’s defined by buyer organization. A third characteristic is that
the item and the measurement scales should be reliable. This refers to degree
to which different individuals or groups reviewing the same items and
measurement scales will arrive at the same conclusion. Reliable evaluations require
well-defined measures and well-understood items.
A fourth characteristic of
a sound supplier survey is flexibility. Although an organization should
maintain a structure to its supplier survey, the formate of the evaluation
should provide some flexibility across different types of purchase
requirements. The easiest way to process flexible is to adjust the performance
grades and weights assigned to each KPI. The most important KPI will receive a
higher weight within the total evaluation score.
A final characteristic of
an effective survey is that it is mathematically straightforward. The use of
weights and point should be simple enough that each individual involved in the
evaluation understands the mechanics of the scoring and selection process. To
ensure that a supplier survey has the right characteristics, step-by-step
process should be followed when creating this tool.