Vendor Rating: The Supplier Qualification Process

Vendor Rating is the global and comparative evaluation of suppliers to monitor their performance and support informed purchasing decisions. It allows for comparing suppliers, improving their management, and selecting the most suitable ones.

Supplier evaluation criteria increase with the complexity of the relationship and include aspects such as technology, finance, and relational factors, in addition to price, quality, and lead times. Vendor Rating evaluates suppliers on the vendor list across three key areas: Quality, Cost, and Delivery, using specific KPIs.

KPIs, which have different units, are normalized into scores to facilitate comparison and analysis. The method is based on performance thresholds (excellent, target, acceptable, worst) and a scale from 0 to 5, ranging from poor to excellent performance, allowing for a uniform and aggregatable evaluation.

Supplier qualification classifies performance as qualified, provisional, or unqualified based on the scores obtained. It serves to ensure required standards are met, influencing service and customer satisfaction. It also allows for rewarding top performers and managing critical situations, strengthening collaboration and continuous improvement.

The Vendor Rating calculation involves: defining the scope, choosing criteria (e.g., punctuality and crises), assigning scores to KPIs, and evaluation based on lead time or delivery punctuality. The result is a weighted score that combines supplier performance and strategic importance.

Various supplier evaluation methods exist, which must be adapted to the business, priorities, quality, timing, and costs. Vendor Rating must offer a global vision, support improvement actions, and reduce subjectivity, remaining clear and fostering both the buyer-vendor relationship and competition among suppliers.