However, they typically address similar areas, which are important for the performance of the overall organization and its stakeholders. The following factors may be considered while evaluating a supplier’s performance: i. (2011, 241) supplier evaluation and selection process model together with three different existing process … formalized development program regarded supplier evaluation very important. While supplier evaluation can be based on a number of factors, there are several considerations that every company should address, regardless of the specific industry. 3 Benefits of Supplier Evaluation Form. Supplier appraisal leads to supplier approval followed by supplier rating. When companies have no or little knowledge on how their suppliers are performing,... 2) Remove hidden waste and cost drivers in the sustainable procurement.. The process consisted of four steps: 1) prepare, 2) analyze and plan, 3) new supplier evaluation, and 4) scan and evaluate. The process was based on the Monczka et al. For this, the evaluation form plays an important role. Timely delivery ii. The Importance of Ongoing Supplier Evaluation Automated purchasing process When a company discovers that they’re either purchasing something significant in an unstructured way or the need arises for a new category of purchases, it’s common for multiple suppliers to be evaluated. A supplier is a person or business that provides a product or service to another entity. The supplier evaluation process should answer the following fundamental questions: Some of these elements include: Production Capacity. It makes the company or the office be alert in their job. Quality of customer service viii. All supplier evaluations should thoroughly appraise the supplier… The table below includes some examples. Also the supplier will be alert in giving the right quality goods and raw material to the office. Quality of items iv. The importance of the supplier evaluation process is to ensure you’re working with a supplier that is stable, thereby minimizing risk to you, your organization, and your customers. Supplier evaluation is important Evaluating all the goods and products is important. Table 1: Examples of measures of supplier performance One of these is that evaluations help bring about better co-ordination between the supplier and the customer. Vaisala’s new supplier evaluation and selection process was developed together with the organization. Although managing risks is important, there are more positive benefits to be had from supplier evaluation. The questions asked in the evaluation form help organizations come to a solid conclusion whether or not the supplier should be appointed. Supplier Evaluation Form Example. As shown in Figure 1 the three activities may be regarded as aspects of a continuous process. Collecting supplier information before finalizing them is a good practice. Supplier performance measures may have different considerations depending on whether we are buying goods or services.