Vendor / Supplier Rating

Vendor rating is the process of establishing performance categories, and collecting and analysing data to monitor trends and identify areas for further action (Bossert et al.)

Information about Vendor / Supplier Rating

Suppliers are arguably among the best intangible assets of any company (Muralidharan et al., 2002), making supplier selection and relationship management critical activities (Cousins, P (MBS) & CIPS: Relationship management).

Vendor rating regular feature as a basic component of comprehensive quality programmes and initiatives (Bossert et al., 2004). It is widely used by major organisations that have developed sophisticated quality approaches (e.g. TQM, Six Sigma) and implemented programmes relying on ship-to-stock, manufacturing resource planning (MRP II), just-intime (JIT) and similar material control operations (Bossert et al., 2004). In this respect, it is important to ensure that suppliers maintain at least satisfactory, but ideally superior, performance.

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