Vendor Evaluation

This paper describes a very simple & generic model of evaluating the overall performance of approved vendors in respect of an engineering industry. A product consists of thousands of parts and some parts need to be procured from outside vendors based on “Make or buy” decision. Thus manufacturing & vendor development are two sides of the same coin. The vendors of regular inventory are considered for evaluation. A poor performance by even a single vendor will have a telling impact on the production in the company. Hence vendor evaluation/rating assumes significance. This method takes into account five criteria such as Quality, Price, Delivery, Service & Support. The first three are objective in nature & last two are subjective in nature. The provision of negative marks is also indicated here. The overall performance rating is a numerical value. Based on this value, vendors are graded into three categories such as high, mediocre & poor performers. This gives an opportunity for the company management where to focus and also vendors will come to know where they stand & how to improve. This model is widely accepted in mechanical engineering industries. This will ultimately result in good vendor relations which is the need of the hour. Citation: Dr. Govinda Bhat S. "Vendor Evaluation." Global Research and Development Journal For Engineering [ERTEE' 19], Adishankara Institute of Engineering and Technology, kalady, Kerala KTU(Kerala Technological University), (March 2019) : pp. 23 - 25.