Supplier evaluation made easy: template and tips for optimizing supplier performance
published on
27.11.2024
Suppliers are far more than just suppliers of products - they are strategic partners who have a significant influence on the success and sustainability of a company. But how can companies ensure that they work with the best partners? The answer lies in a structured and systematic supplier evaluation.
A supplier evaluation provides a comprehensive assessment of supplier performance. In a global market environment that is becoming increasingly complex, a systematic approach helps companies to secure competitive advantages while complying with ethical, social and environmental standards. On this basis, companies can make informed decisions and build successful, long-term strategic partnerships with their suppliers.
The supplier evaluation process comprises various steps from the definition of supplier selection criteria through to the quality audit. Regular auditing systematically ensures that suppliers comply with standards. In addition, as part of a supplier quality audit, both the quality delivered and the supplier's quality assurance systems can be examined. Audits also help to identify potential risks in the supply chain at an early stage and initiate measures to minimize risks.
A supplier code of conduct sets out a framework for a company's requirements and expectations of its suppliers in terms of ethical, social, environmental and legal standards. Suppliers who violate these standards not only jeopardize the collaboration, but also expose the company's brand to significant risk. Suppliers are therefore generally expected to sign the Code and undertake to comply with the guidelines it contains.
1. quality
The quality of the products or services supplied is one of the most important evaluation criteria for suppliers. Companies must ensure that the delivered goods meet the defined specifications and standards in order to achieve their own quality objectives. Experiences from other customers or customer reviews can provide valuable insights into a supplier's quality performance. Key figures such as the complaint rate or the reject rate are also helpful indicators of quality.
2nd prize
Price is another key factor when evaluating suppliers. Not only should the direct price of the products or services be considered, but also the price-performance ratio and other cost aspects such as transportation, logistics or possible follow-up costs due to low quality.
3. adherence to delivery dates
The ability of a supplier to deliver on time and in the agreed quantity is crucial for the company's planning and production. Reliability in the supply chain is essential to avoid bottlenecks and to maintain production or operations. Late deliveries or non-compliance with delivery quantities can have a significant negative impact.
4. technological competence
The technological competence of a supplier reflects how well it is able to use modern technologies and innovations in its production and work processes. Suppliers who are technologically up to date can often work more efficiently, cost-effectively and to a higher quality. They are also able to meet new requirements or specifications more quickly and offer innovative solutions.
5. financial stability
The financial stability of a supplier is an important factor in ensuring that they can act as a reliable partner in the long term. Financial uncertainties can entail the risk of production bottlenecks, delivery failures or even company closures.
6. service quality
In addition to product quality, the customer support and service quality of a supplier is also a decisive criterion. This includes responding quickly to inquiries, solving problems, handling complaints and providing technical support.
7. certifications and standards
Certifications can provide neutral proof of a supplier's compliance with quality, safety and environmental standards. They offer security for purchasing companies to avoid quality defects or breaches of regulations themselves.
Here you will find a comprehensive overview of the most important internationally recognized certifications and which ones are particularly relevant for you and when.
ISO 9001 is one of the most widely used standards and ensures that a supplier has implemented an effective quality management system. It is therefore also important for most companies.
ISO/TS 16949 & IATF 16949 - These certifications are specific to the automotive industry and should always be adhered to when evaluating suppliers in this sector. In 2018, ISO/TS 16949 was replaced by IATF 16949, which was developed by the International Automotive Task Force (IATF). Since then, only IATF 16949 certificates have been approved.
ISO 13485 is particularly relevant for suppliers in the medical technology sector. This standard focuses on the quality and safety of medical devices and is a must for all suppliers operating in this field. Medical devices that are manufactured or offered by companies without a certified quality management system usually have greater difficulties in being approved on the market.
ISO 27001 - This standard ensures that suppliers have a robust information security management system. Especially in industries where data security is crucial, such as IT or financial services, this is an important criterion for auditing.
ISO 45001, on the other hand, certifies occupational health and safety management systems. The aim here is to improve the working environment, prevent accidents at work and minimize health risks. The standard also requires companies to develop preventative measures, identify hazards at an early stage and implement emergency plans. This is particularly important in sectors with an increased risk of accidents, such as the construction industry, mechanical engineering, chemical and heavy industry and logistics.
ISO 14001 certification sets a standard in environmental management. Companies that prioritize environmentally friendly practices in their supplier selection criteria and want to credibly demonstrate this commitment should give preference to suppliers that are ISO 14001 certified.
The RoHS Directive restricts the use of certain hazardous substances in electrical and electronic equipment and is binding in all EU member states. All electrical and electronic equipment must be RoHS-compliant in accordance with Directive 2011/65/EU and bear a CE mark in order to be sold on the market.
UL certification - The certification ensures that products are safe and comply with US safety requirements. It is widely used in the electronics and mechanical engineering industry and is particularly important for companies that operate internationally, especially in the USA and Canada.
BSCI certification - This certification is particularly important in the area of social responsibility and assesses compliance with and improvement of social standards in global supply chains. A supplier with BSCI certification shows that it acts in a socially responsible manner.
The FSC certificate is particularly relevant for suppliers who trade in wood products. It ensures that the material originates from responsible forest management.
The evaluation of suppliers is a central component of the procurement process that goes far beyond the mere selection of a suitable partner. The multi-layered supplier criteria that are taken into account in the evaluation also underline the strategic relevance of purchasing for the success of a company.
With the Tacto supplier evaluation template, you can easily evaluate your suppliers based on the most important criteria. It is flexible and can be adapted to the specific requirements of your company. Use the template to gain transparency about your suppliers and improve your supplier strategy in the long term.
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