Supplier evaluation represents an important component of supplier management. A systematic and regular supplier assessment is the basic requisite for a transparent overview of the entire supplier base.
Wikipedia defines supply evaluation as:
"Supplier evaluation is a term used in business and refers to the process of evaluating and approving potential suppliers by quantitative assessment. The purpose of supplier evaluation is to ensure a portfolio of best in class suppliers is available for use. Supplier evaluation is also a process applied to current suppliers in order to measure and monitor their performance for the purposes of reducing costs, mitigating risk and driving continuous improvement."
(Supplier evaluation. (2016, July 28). In Wikipedia, The Free Encyclopedia. Retrieved 08:07, August 16, 2016, from https://en.wikipedia.org/w/index.php?title=Supplier_evaluation&oldid=731918655)
With LCM Purchase The Quality Group offers a highly automated supplier assessment tool for measuring the capability of existing suppliers:
This function provides a highly automated supplier assessment feature for measuring the performance of existing suppliers. The measuring criteria can be designed and weighted freely. The assessment is based on “hard facts”, like key data on delivery and quality compliance extracted directly from the ERP system as well as “soft facts” maintained by internal departments, like purchase, logistics and quality management. Regular updates ensure the transparency and comparability of the overall supplier base and form a critical data basis for the supplier classification as well as a decision basis for supplier development activities.