Reports Archives - RFQPro: RFP and RFQ Templates for Buyers and Suppliers

Vendor Evaluation Tools

July 12, 2010

Proficient buyers understand the value, benefits, and strategic importance of evaluating their vendors. They also know that doing it well takes time. That’s why one of RFQPro’s core objectives is to provide practical, time-saving tools that make supplier evaluation easier, faster, and more consistent.

Some of the benefits your company will gain from completing regular vendor performance reviews are:

Better communication
Improvements to product deliveries
Better service
Process improvements
Inventory reduction
Cost savings
Quality improvements … just to name a few

Getting into each one of the above topics on the benefits deserves its own post, but one point is universal: identifying vendor short comings and helping suppliers get back on track is simply good business. In many cases, Vendors may not be aware they are dropping the ball. Bringing certain short comings to their attention and documenting them is simply good vendor management.

This proactive approach will reduce the amount of time wasted or inefficiencies within your organization. How? When Suppliers ship the correct products, follow your specifications and provide accurate paperwork, your team spends far less time returning incorrect shipments or fixing pricing errors. These are two frustrating and everyday examples many organizations face.

Creating a clear paper trail demonstrates due diligence and is an important impression to make with your vendor whether you continue to have a future relationship with them or not.

RFQPro has a comprehensive Vendor Evaluation Template Form you can edit and use to make this task a little easier to ensure you are able to properly evaluate your Suppliers or Vendors. It is a 14 page document which provides questions and weighted measures for everything from item delivery to product quality. This template and our Sub-Contractor Performance template are included in our Premium and Mega Packs.

Our Vendor Evaluation Tools include:

RFQ22 – Facility Audit Form
RFQ30 – Supplier Evaluation Form
RFQ31 – Sub-Contractor Evaluation Form

Vendor Evaluation Questions

February 19, 2010

by Mark Bell All Templates Reports

Using Structured Questions to Drive Vendor Improvement and Collaboration

The process of evaluating vendors is an ongoing task which every purchasing department should be performing at regular intervals. In this process, you are inviting dialogue or communication with your vendors, which is always good.

What types of questions should you ask your vendors? Ask questions directly related to areas which require improvement and do not neglect to mention areas which the vendor is excelling or performing well at.

Remember, the goal is to help your vendor improve their service levels and how they do business with your company. In return, the vendor might even offer something which will make both your organizations more efficient!

In Part A, we have provided a verbal question you might ask during your interview. In Part B, we have some examples of questions which are asked internally and completed prior to the actual vendor interview. See Delivery issue in Part B.

Part A

Do you have a recognized Quality Assurance program implemented?

Is system in effect?_________ Is procedure written? __________

Other questions can be related to the internal review. Example:

Out of XXX shipments this year we have identified a poor performance rating in the Delivery category because you have used an incorrect carrier. Have the vendor explain why.

Maybe, the carrier you are requesting on your purchase order does not service that region or possibly the message is not getting to the vendor’s shipping department. In the latter, our experience is if you refuse to pay freight charges because the vendor did not ship as instructed, they quickly get the message and future shipments will be as instructed.

Part B

1.	DELIVERY	Points	Weight	Total
	On time arrival or service	90	.18	16.2
	Conformance to packaging specifications	89	.10	8.9
	Correct carrier used	59	.02	1.12
	SUB TOTAL		.30	26.3

2.	QUALITY
	Conformance to specifications	90	.15	13.5
	Commitment to improve quality	90	.12	10.8
	Quality of information (documentation)	90	.03	2.7
	Claims and credit returns	87	.02	1.74
	Environmental	92	.08	7.36
	SUB TOTAL		.40	36.1

Rating Points

0 – 19	Not Applicable
20 – 39	Not Acceptable / No Compliance
40 – 59	Poor Performance
60 – 79	Good / Minimum Expectation
80 – 89	Very Good
90 – 100	Excellent Performance

Weighting Vendor Performance to Reflect Operational Priorities

Any effective vendor performance evaluation relies on a clear weighting system and rating scheme that measures Price, Delivery, Quality, Quantity, and Service. These categories form the backbone of most procurement scorecards, but the relative importance of each one cannot be standardized across organizations. Only the owner or procurement lead can determine the appropriate weighting, because they best understand which product classes and service elements are most critical to operational viability.

The emphasis placed on quality versus delivery, or service versus price, will vary not only from company to company but also from vendor to vendor. A supplier providing mission‑critical components may require a heavier weight on quality and delivery reliability, while a commodity supplier might be evaluated more heavily on price and service responsiveness. The weighting system should reflect these nuances so that the final score accurately represents the vendor’s true impact on your operations.

Open and honest dialogue should be completed annually with your primary or key vendors and should be documented to allow for review and accountability. If you are interested in a comprehensive Vendor Performance Template you may wish to review RFQ30 which is in our Premium, Vendor and Mega packs.

Subcontractor Performance Report Template

July 6, 2009

by Mark Bell All Templates Reports

In the simplest form, a subcontract is a purchase order written with more explicit terms and conditions. Its complexity and management varies in direct proportion to the value and size of the job. The management of a subcontract may require unique skills and abilities because of the amount and type of correspondence, charts, performance reviews and management reporting which are necessary.

RFQ31 – Subcontractor performance template will help you audit and record performance