Vendor Evaluation Analysis
For
Your Business, Inc.
How can the small business owner objectively evaluate the various advantages and disadvantages of each vendor? One method is this form that evaluates each supplier on key purchasing variables. Enter numbers in Blue in unshaded cells only.
Step 1 - Criteria.
Assign weights to each criteria to reflect its relative importance to your business. Criteria Quality = Price = Prompt Delivery = Service = Support = Total Weight 35 30 20 10 5 100
Step 2 - Grading scale for each criteria
Quality Price Prompt Delivery Number of acceptable lots from vendor divided by total number of lots from vendor. Lowest quoted price of all vendors divided by vendor X. Number of ontime deliveries from vendor divided by total number of deliveries by vendor. A subjective evaluation of the variety of services offered by each vendor. A subjective evaluation of the advice and assistance provided by each vendor.
Service
Support
Step 3 - Compute a weighted score for each vendor
© Copyright, 2009, Jaxworks, All Rights Reserved.
VENDOR 1
Criteria Weight 35 9 10 30 12.50 12.50 20 10 10 10 8 10 5 5 5 Grade 0.90 Weighted Score (Weight X Grade) 31.50
Quality =
Acceptable Lots = Total Lots =
Price =
Lowest Quote = Vendor 1 Quote =
1.00
30.00
Delivery =
Ontime = Total =
1.00
20.00
Service =
Satisfied = Total =
0.80
8.00
Support =
Requests = Total =
1.00
5.00
94.50
© Copyright, 2009, Jaxworks, All Rights Reserved.
VENDOR 2
Criteria Weight 35 8 10 30 12.50 13.50 Grade 0.80 Weighted Score (Weight X Grade) 28.00
Quality =
Acceptable Lots = Total Lots =
Price =
Lowest Quote = Vendor 1 Quote =
0.93
27.78
Delivery =
Ontime = Total =
20 8 10 10 8 10 5 4 5
0.80
16.00
Service =
Satisfied = Total =
0.80
8.00
Support =
Requests = Total =
0.80
4.00
83.78
© Copyright, 2009, Jaxworks, All Rights Reserved.
VENDOR 3
Criteria Weight 35 7 10 30 12.50 12.50 20 6 10 10 7 10 5 1 5 74.50 Grade 0.70 Weighted Score (Weight X Grade) 24.50
Quality =
Acceptable Lots = Total Lots =
Price =
Lowest Quote = Vendor 1 Quote =
1.00
30.00
Delivery =
Ontime = Total =
0.60
12.00
Service =
Satisfied = Total =
0.70
7.00
Support =
Requests = Total =
0.20
1.00
Based on this analysis you should purchase from the highest vendor rating. Which is =
94.50
© Copyright, 2009, Jaxworks, All Rights Reserved.
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