Table of Contents
Reasons for Evaluating Suppliers
Supplier rating and evaluation systems are developed for four basic reasons:
Rating System Options
Today's purchasing and supply professional has several supplier rating methods at his or her disposal. Each will vary in terms of cost, technology required, time and personal resources required, ease of implementation, and most importantly, overall effectiveness. Some of the common supplier rating methods include:
Supplier Ratings and The Supplier
Before any rating system is implemented it is important that suppliers fully understand how they will be rated. The system should be documented in such a way to eliminate the potential for a misunderstanding. The system's goals and measurements need to be clearly laid out for suppliers. A well-documented system will leave the supplier with an understanding that this is not a quick decision, and that you are committed to the implementation of long-term change.
Bruce Hollingsworth, C.P.M.
Bruce Hollingsworth is the president of Purchasing Solutions, in Beaverton, Oregon. His firm specializes in procurement consulting and the design and development of systems for the rating and evaluation of supplier performance. With over 20 years of experience in purchasing and more than 10 years in procurement systems design and analysis, he has been credited with the development of systems for Litton, Rockwell International, and numerous other corporations. Mr. Hollingsworth is active as a national speaker and consultant. In the past he has also appeared on the cover of Purchasing magazine for his work in the field of supplier rating.
- Long, C. and Meyer, G., Sacred Cows Make the Best Barbecue, Vision Press, 1998
- Tyndall, G., Gopal, C., Partsch, W., and Kamauff, J., Supercharging Supply Chains, John Wiley & Sons, Inc., 1998
- Aljian's Purchasing Handbook, 4th Edition, McGraw-Hill, 1981 (also published under the title The Purchasing Handbook, 5th edition, McGraw-Hill, 1993)
- Monczka, R., Carter, P., Hoagland, J., Purchasing Performance: Measurement and Control, Michigan State University Bureau of Business Research, 1979
FOR FURTHER READING
- Bossert, J. L., Supplier Management Handbook, ASQC Quality Press, 1994
- Grieco, P. L., Supply Management Toolbox: How to Manage Your Suppliers, PT Publications, Inc., 1995
- Harding, M. L., "Creating Your Own Supplier Evaluation Formula," Purchasing Today®, November 1997
- Mathers, M., "A Weighty Proposition," Purchasing Today®, March 1996
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