Scribd
Upload
32 views10 pages

Operations Management SBT

Uploaded by

dhruvisomaiya46
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
32 views10 pages

Operations Management SBT

Uploaded by

dhruvisomaiya46
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

OPERATIONS MANAGEMENT

(SBT 2)
Topic : Vendor Evaluation

Jaya Sree – 25
Dhruvi – 13
Ishika – 23
Suchita – 31
Ankith - 05
VENDOR -EVALUATION

Vendor evaluation is the process of assessing and analyzing suppliers or vendors to


determine their performance, capabilities, and suitability for fulfilling a company's
needs. It involves reviewing factors such as quality, reliability, cost-effectiveness,
delivery time, customer service, and overall compatibility with the organization's
goals and standards. The evaluation helps companies make informed decisions
about which vendors to continue working with, which to renegotiate contracts with,
and which to replace.
VENDOR RATING

• Vendor rating is a measure used by companies to evaluate the performance and


reliability of their suppliers or vendors. It typically involves assessing various
factors such as quality, delivery time, pricing, customer service, and overall
satisfaction with the vendor's products or services. The rating helps companies
make informed decisions about which vendors to continue doing business with
and which ones may need improvement or replacement.
The main objectives of vendor rating

• Provide structured assessment: Vendor rating offers a systematic approach to


evaluating vendors' performance.
• Ensure compliance: It helps ensure that vendors meet regulatory, quality, and
contractual requirements.- Identify strengths and weaknesses:
• Allows for the identification of areas where vendors excel and areas needing
improvement.- Mitigate risks: Helps mitigate risks associated with unreliable vendors,
poor quality products, or delayed deliveries.
• Optimize supply chain management: Facilitates the optimization of the supply chain
by identifying efficient and reliable vendors.
• Enhance business operations: By selecting high-performing vendors, companies can
improve efficiency, reduce costs, and enhance overall business operations.
PARAMETERS OF VENDOR
RATING
Vendor rating parameters can vary depending on the industry and specific needs of a
business, but some common parameters include:
1)Quality: Assessing the quality of products or services provided by the vendor.

2)Reliability: Evaluating the vendor's ability to deliver products or services on time and as
promised.

3)Cost-effectiveness: Analyzing the value proposition offered by the vendor in relation to the
cost

4)Communication: Evaluating the vendor's responsiveness and effectiveness in


communication.
5) Customer Service: Assessing the vendor's support before, during, and after the
purchase or service delivery.

6) Innovation: Considering the vendor's ability to introduce new ideas,


technologies, or solutions.

7) Compliance: Ensuring the vendor meets regulatory requirements and adheres


to industry standards

8) Risk Management: Evaluating the vendor's risk profile and their ability to
manage potential risks effectively.

9) Ethical Practices: Assessing the vendor's commitment to ethical business


practices and corporate social responsibility.
VENDOR RATING PLANS
Creating a general outline for a vendor rating plan:
1)Establish Objectives: Define the purpose of the vendor rating plan, such as improving vendor
performance, reducing costs, or ensuring compliance.

2) Identify Key Metrics: Determine the specific criteria and metrics to evaluate vendors, such as
quality, reliability, cost-effectiveness, communication, and compliance.

3) Weighting Criteria: Assign weights to each criterion based on its importance to your
organization. For example, quality may be weighted higher than cost-effectiveness.

4) Data Collection: Determine how you will collect data for each metric, whether through
surveys, performance reports, audits, or other methods. Consider using both quantitative and
qualitative data.
5) Scoring System: Develop a scoring system for each metric, such as a numerical scale or
qualitative rating (e.g., excellent, good, fair, poor).

6) Vendor Evaluation: Regularly evaluate vendors against the established criteria, using the
data collected to assess their performance.

7) Feedback Mechanism: Establish a process for providing feedback to vendors based on their
performance evaluations. This could include performance reviews, meetings, or written
reports.

8) Continuous Improvement: Review and refine the vendor rating plan regularly to ensure it
remains aligned with organizational goals and adapts to changing needs or priorities.

9) Transparency: Ensure transparency in the vendor rating process by clearly communicating


the criteria, scoring system, and expectations to both internal stakeholders and vendors.
THANK YOU

ANKITH MISHRA – 05

DHRUVI SOMAIYA – 013

ISHIKA BAJAJ – 023

JAYASREE MANNA – 025

SUCHITA KATEKAR – 031

You might also like