How to Appraise Suppliers

The three terms supplier appraisal, supplier approval and supplier rating are sometimes confused. Each of the three terms has been defined in this paper.

Information about How to Appraise Suppliers

The three terms supplier appraisal, supplier approval and supplier rating are sometimes confused. Each of the three terms has been defined as follows (11The definitions of supplier appraisal and supplier rating are taken from

Compton H. K. and Jessop D.A. The Official Dictionary of Purchasing and Supply, Liverpool Business Publishing 2001):

  • Supplier appraisal – Assessment of a potential supplier’s capability of controlling quality, delivery, quan-tity, price and all other factors to be embodied in a contract.
  • Supplier approval – The placing of an enterprise on an approved list of suppliers following a process ofsupplier appraisal.
  • Supplier rating – an index of the actual performance of a supplier.

 

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