Supplier Evaluation assumes utmost importance in the current scenario of global purchasing. Every Organization (especially manufacturing organizations) needs to have an evaluation matrix or model in place.
Companies who evaluate their suppliers find that they have better visibility into supplier performance, uncover and remove hidden cost drivers, reduce risk, increase competitive advantage by reducing order cycle times and inventory, gain insight on how to best leverage their supply base, and align practices between themselves and their suppliers.
Companies pursuing supplier assessment commonly see over a 20% improvement in supplier performance metrics (e.g., on-time delivery, quality, and cost).
Supplier evaluation refers to the process of evaluating and approving potential suppliers by quantitative and qualitative assessment. The purpose is to ensure a portfolio of best in class suppliers is available for use.
It is also a process applied to current suppliers in order to measure and monitor their performance for the purposes of reducing costs, mitigating risk and driving continuous improvement
There are different methods and approaches to carrying out a supplier evaluation with emphasis on CSR practices. Some examples include questionnaires, scorecards, site visits and third-party standard certifications.
A number of organizations such as EcoVadis have developed evaluation tools and methodologies to help companies perform Supplier Evaluations. The objective of the EcoVadis supplier evaluation is to assess the quality of a company’s CSR management system-through its policies, implementation measures and results.
The process captures and analyzes information and distills it into a scorecard with a Rating on a 0 to 100 scale. Read about best practices on supplier sustainability evaluations in this blog post: Best Practices For Supplier Sustainability Evaluations
Learn more about the EcoVadis evaluation process, the methodology behind it and how all this is integrated in a simple, easy to read scorecard in our guide
Are you looking for tools to evaluate the suppliers in your supply chain base and improve their performance? EcoVadis helps thousands of companies like yours to evaluate and improve their supply chains. Contact us to learn more!