Vendor evaluation is a key process in the
procurement function of every organization. “Vendor Rating” is an analysis of the
Suppliers’ Performances in order to estimate
the suppliers real technical/quality
competencies related to delivered products.
Vendor Analysis and performance
improvement are a part of quality standards.
Evaluation of vendors and creating a strong
and consistent vendor base identifies the right
vendor based on quality, price, delivery, buyer
ratings and inspection.
Vendor rating System helps the user in :
- Evaluation of Supplier’s overall
performance in the area of Quality, on time
Delivery, Price, Assembly complaints,
Services and to identify opportunity areas
- Tracking the performance of the vendor
over a specified period.
The Vendor Rating Systems can be used
independently. Alternatively, this system can
be integrated with any ERP and legacy systems
existing within an organization.
- To evaluate vendors to develop a Quality
Vendor base to meet global challenges.
- Coach and help supplier’s quality for higher
- Reward suppliers who demonstrate
- Share Supplier’s performance
- The System evaluates the performance of
the vendors and projects the future
performance and the corrective action
required to improve their efficiency.
- It helps to improve the production
efficiently and accurately.
- Continuous evaluation to track vendor
Monitoring of vendors based on objective
criteria Prescreening Factors evaluation and
comparison with the existing vendor.
A cocktail report which comprises of :
- Categories and searches vendors
- Vendor/Supplier Score Card application.
- Check lists.
- Central repository database of vendors that
includes information about each vendor’s
business (address, goods supplied, etc.),
poor evaluations, and other details about
a vendor’s history.
- Vendors approved Database /reasons for
rejection based on merit rating.
Comparison of vendors.
- Flexibility in report selection
- Security /prevents unauthorized access to
The vendor rating system is targeted
towards companies who have streamlined
processes and who are conscious of materials
sourced. Also, these companies routinely face
situation where there are multiple suppliers
for a single item and have to choose
appropriate vendor. The software definitely
addresses all these requirements.
Thus Vendor performance statistics
include purchase items that were late, the
percentage of cost variance between expected and billed prices and percentage of delivered items rejected.
Finally, the report presents the average lead time and the average days late
for each vendor.
Numerous conclusions can be drawn by
analyzing these results from a technical,
qualitative and management point of view as
well as with respect to delivery time. The
analysis, extended to various suppliers gives
a general assessment on qualification status.
Trends can then be examined to evaluate the
improvements or deterioration in quality
Online Bidding Solutions
One of the common procurement methods
would be Online Bidding Solutions. Online
bidding is simple to use, gives you real time
information enabling you to make decisions
based on actual pricing and data. One can
take advantage of the opportunities that
impact your bottom line.
- Secure online bid.
- Allows vendors to access information
without seeing the Company name of other
- Setting Time and date for bids.
- History of Listed Bidding.
- Quality Audits.
- Submission of Bids by vendors in an
- Notification to vendors of bid award and
- Option to post bid awards to purchase