Supplier evaluation: The first step in effective sourcing

Abstract

The evaluation and selection of suppliers are important tasks in any organisation. Each organisation needs to have a supplier evaluation matrix or model in place. The goal of this article is not only to give an overview of supplier performance evaluation techniques but also to present an example of such a supplier evaluation matrix used in practice. The article shows that suppliers’ qualities, strategies and abilities affect a buying company’s business. Reliable suppliers can help to develop stabile, long-term relationships that will be beneficial to both parties. Effective sourcing and purchasing require high-quality suppliers.