vendor evoluation

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 shaded cells only. This Sheet is unprotected . . . Be Careful! 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 VENDOR 1 Criteria Weight 35 9 10 30 12.50 12.50 20 10 10 10 8 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 = 0.80 8.00 © Copyright, 2003, JaxWorks, Inc., All Rights Reserved. Total = 10 5 5 5 1.00 5.00 Support = Requests = Total = 94.50 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 © Copyright, 2003, JaxWorks, Inc., All Rights Reserved. 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 VENDOR 3 Criteria Weight 35 7 10 30 12.50 12.50 20 6 10 10 7 10 5 1 5 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 74.50 Based on this analysis you should purchase from the highest vendor rating. Which is = 94.50 © Copyright, 2007, Jaxworks, All Rights Reserved. © Copyright, 2003, JaxWorks, Inc., All Rights Reserved. Since 1996, JaxWorks has offered a suite of Free Excel workbooks and spreadsheets, and ass HTML documents, that cover a number of financial, accounting and sales functions. These are i tools. Also included Free are: - business plan tools, including spreadsheets and excellent instructions - Excel functions glossary and guide; - free training courses for most Microsoft Office applications. These guides are in PDF format and rival commercial books! - comprehensive list of acronyms, ratios and formulas in customer financial analysis, and financial terms; - suite of online calculators, including, breakeven analysis, productivity analysis, business evaluation; - Altman Z-Score (covering publicly and privately held firms, and small businesses); - and payroll analysis. If you are involved in financial analysis at any level, or want to learn more about MS Excel and o Office suite this site is invaluable. JaxWorks Small Business Spreadsheet Factory nd spreadsheets, and associated MS Word, PDF and ales functions. These are invaluable small business e guides are in tivity analysis, more about MS Excel and other applications in the dsheet Factory