Download SignalX Supplier Evaluation Guide
Supplier Evaluation is the process of assessing the capabilities and risks associated with a prospective or existing supplier. The purpose of supplier evaluation is to help the procurement or business teams make informed decisions on its trade partners to ensure the desired quality of output, to align suppliers with business expectations, and ensure that the supplier is not exposing the business to third-party risks which could be financial, legal, reputational or regulatory.
Businesses need to be confident that the suppliers they work with not only have the capabilities required to deliver the right products/services at the right time but are also sound in their financial and compliance health as well. 87% of surveyed enterprises have resulted in one or more disruptions occurring on an annual basis in their supply chain due to health and compliance issues with their suppliers.
Having a robust supplier evaluation process helps a business drive supply chain resiliency and protect the business from unforeseen risks. Supplier evaluation is one part of an effective supply chain management program.