Monday 23 June 2014

Characteristics of Supplier Survey

Authored by  Junaid Khan

Supplier Evaluation often follows a rigorous, structured approach using formal surveys. An effective supplier survey have certain characteristics. First, the survey should be comprehensive and include the performance categories considered important to the evaluation and selection process. Second, the survey process should be based on KPI’s defined by buyer organization. A third characteristic is that the item and the measurement scales should be reliable. This refers to degree to which different individuals or groups reviewing the same items and measurement scales will arrive at the same conclusion. Reliable evaluations require well-defined measures and well-understood items.

A fourth characteristic of a sound supplier survey is flexibility. Although an organization should maintain a structure to its supplier survey, the formate of the evaluation should provide some flexibility across different types of purchase requirements. The easiest way to process flexible is to adjust the performance grades and weights assigned to each KPI. The most important KPI will receive a higher weight within the total evaluation score.

A final characteristic of an effective survey is that it is mathematically straightforward. The use of weights and point should be simple enough that each individual involved in the evaluation understands the mechanics of the scoring and selection process. To ensure that a supplier survey has the right characteristics, step-by-step process should be followed when creating this tool.