How to evaluate a supplier - Mind Map
This mind map helps you carry out a systematic evaluation of a potential supplier.
Keywords: supplier evaluation, strategic requirements, suppliers monitoring, quality assurance, project management
Learn how to evaluate a supplier to provide the best services or products to your customers and maintain them committed and satisfied.
This mind map template supports you in the suppliers' assessment for which you need to consider several aspects: the products or services specifications and how well they perform, what are their delivery capabilities and their popularity on the market, do they have any references or how are they rated by other organizations?
Other important elements to look out for are the financial and administrative ones, such as pricing structure, financial stability and the return policy, which has to be clear and precise.
Your supplier must provide proof of their commitment to high-quality standards, so after considering all these factors, it's time to make a plan about how you will track and measure their performance. Establish some indicators and reflect on the delivery percentage, the reject rate of the products, or the time they take to resolve any negative situations that may occur.
Go on with your evaluation and add your requirements. Include the pricing, the payment terms, the ordering flexibility, terms and conditions, and SLA's if applicable.
Where to next?
Where to next?
Once you have finished your evaluation, you can use it to compare against other options, or as a basis for negotiation with your preferred supplier, to strengthen the weaker areas.
Download or Print your mind map or Share it with your colleagues.
Supplier's Name
Enter the supplier's name and the product or service you are evaluating.
Strategic requirements
Risks
Risk
What are the risks with this purchase? What could go wrong?
Think about:
- Late deliveries
- Under-delivery
- Missed deliveries
- Non-availability or ceasing to supply
- Substandard delivery (unacceptable quality)
- Unreliability of product or service
Impact
What would be the impact of 'Risk' on your operations?
Relationship
Benefits
Are there any strategic aspects to the relationship with the supplier of this product or service?
Is there a technological trend or a business opportunity that you could benefit from by choosing this supplier?
Alternatives
Alternative
If this is a level 1 or level 2 purchase, do you have alternatives in case this supplier does not work out?
Criticality
Is this purchase critical for your organization?
Do you need to have alternatives to ensure supply? Or could you manage without it?
Choose from the suggested levels or enter your own description.
Ranking
Your requirements
Requirement
Add a requirement for the product or service you will be purchasing.
Think about:
- Pricing, volume pricing, and payment terms
- Order volumes, ordering flexibility
- Quality, reliability or service level agreement
Prioritize your requirements by clicking an icon:
Monitoring
Measure metrics
How will you monitor the performance of this supplier? What will be your thresholds for acceptable performance?
Consider:
- On-time delivery percentage
- Product or service scrap or reject rate
- Time to resolution of incidents
Evaluation
Other factors
Type in any other factors that influence the evaluation of this supplier.
Problem resolution
Do they have formal processes for correcting problems, handling complaints and escalating issues?
Are they able to respond in an appropriate timeframe for your operations?
Rate this factor by clicking an icon:
Communication and support
Will you have a dedicated and responsive contact person?
How will they communicate with you through the ordering and support processes?
Rate this factor by clicking an icon:
Organisational match
Is this supplier a similar kind of organization to yours?
Are they likely to understand your pressures and concerns?
Do they understand your market?
Rate this factor by clicking an icon:
Reputation
Can you establish their informal reputation?
Think about:
- Other customers and industry contacts
- Social media
- Unsolicited feedback in user forums
- Independent reviews in trade publications
Rate this factor by clicking an icon:
References
Do you have independent references or testimonials from organizations similar to yours, who have similar requirements?
Rate this factor by clicking an icon:
Returns policy
What do they do when defective products or services are shipped?
Do they have clear processes for handling returns?
Rate this factor by clicking an icon:
Quality Control
Do they check and test adequately before shipping?
What reject rate are they willing to guarantee?
Do they supply products or services to other customers with high-quality requirements?
Rate this factor by clicking an icon:
Quality Assurance
Can you assess their Quality Assurance processes?
Do they pursue continuous quality improvement?
Do they have an active quality policy?
Do they have quality certifications such as ISO 9001?
Rate this factor by clicking an icon:
Financial stability
Can you assess their financial stability?
Are they a well-established company with a history of reliably supplying other organizations?
Rate this factor by clicking an icon:
Payment terms
Are their payment terms acceptable?
Will their terms fit in with your cashflow management and stock holding?
Rate this factor by clicking an icon:
Pricing structure
Do their prices meet your requirements?
Do they depend on minimum levels of business?
Rate this factor by clicking an icon:
Lead times
Can they consistently meet your required lead times and availability of product or service?
Rate this factor by clicking an icon:
Capabilities and capacity
Does this supplier have the capacity and capability to deliver your required levels, and can they deliver reliably?
Rate this factor by clicking an icon:
Specification
Rating
How well does the product or service meet your essential requirements?
Rate this factor by clicking an icon:
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