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Procedure for Evaluation and Selection of suppliers

Updated on January 20, 2011


For various requirements of the company , raw materials purchased from various Suppliers.. to maintain the smooth supply, in terms of quality ,service, reliability, cost , we need to select the proper supplier as well as  evaluate the selected supplier performance , 

Selection of suppliers

 The selection of supplier is  based on their ability to deliver his services in terms of quality , quantity, cost deserved, delivery period.

 Following things consider during th selection of Supplier

  • Ability to meet company  requirement (quantitative and qualitative).
  •   Availability of required infra structure /facilities/skilled manpower/Stock availability. 
  • Reliability.     
  •  Location of supplier/Service promptness
  •  Certification to ISO 9001: 2000 ( if required)
  •  Where required visits are carried out at supplier end to see his  infrastructure/facilities/  manpower.
  •  In case of outsourced activities the details of process, required equipments, process parameters are studied and discussed with supplier
  • samples are asked as per Company specification. Trials are conducted, before Selection and approval

Supplier Evaluation

The supplier is evaluated based on their ability to deliver his services in terms of quality , quantity, cost deserved, delivery specific period. Suppliers are evaluated twice every year through incoming inspection and date of delivery. The data of inspection and delivery is analyzed by Purchase head.

The supplier who has failed in quality and/or delivery more than set limit in six months/set period, he is instructed to improve. to evaluate the performance marking proceduer adapted


  •    marking is given depending upon delivery date. 
  • Delivery on schedule date will get 100 marks.
  •  Marks will be reduced for delayed delivery by No. of days delayed. Also mark will increase by no. of days for early delivery. 
  • If material is rejected, zero marks will be given for that transaction. 
  • While analyzing performance, average is taken. 
  • Supplier getting average marks less than 90 or more than 110 will be instructed to improve. 
  • The same supplier/s is monitored for next year for improvement. 
  • In case no improvement is seen in supplier/s delivery/quality, the same is / are discontinued.

In case the supplier again wants to re enter into business after some period , all above steps for Evaluation and selection are followed.

Supplier Re-Evaluation is done in case the supplier has not supplied any product or services for last two years. Also, supplier is re-evaluated in case he has added any new facilities/machinery in his set up.


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