Supplier Evaluation
Quick facts
| Category | Supplier selection, scoring and ongoing performance monitoring |
|---|---|
| Used by | Manufacturing, medical devices, pharmaceuticals, aerospace, automotive and other regulated industries |
| Also called | ASL (Approved Supplier List) |
| Related standards | ISO 9001, ISO 13485, AS9100, IATF 16949 |
| Related processes | Supplier surveys, supplier corrective action request, nonconforming product, approved supplier list |
| Semantic match | supplier evaluation process, supplier qualification, approved supplier list, supplier performance monitoring |
What is Supplier Evaluation?
Supplier evaluation is how an organization determines whether a supplier can reliably meet its requirements, both at the point of initial selection and continuously afterward as the relationship progresses. Evaluation typically scores suppliers against defined criteria such as quality performance, on-time delivery, responsiveness, cost and compliance with applicable regulatory or industry standards.
Initial evaluation, sometimes called qualification, is performed before a new supplier is approved for use, often including a review of the supplier's quality system, certifications and, in some cases, an on-site or remote audit. Ongoing evaluation, or re-evaluation, monitors actual performance over time using data such as nonconformance rates, on-time delivery and complaint history.
Organizations typically maintain an approved supplier list, documenting which suppliers have been evaluated and approved for use, along with the criteria and results supporting that approval.
Why is Supplier Evaluation important?
The quality of purchased materials, components and outsourced services directly affects an organization's ability to consistently meet its own product and service requirements. A weak or unqualified supplier can introduce risk that no amount of internal inspection fully eliminates.
Structured supplier evaluation gives organizations objective evidence, rather than assumption or habit, about which suppliers reliably perform and which present elevated risk, supporting better sourcing decisions and prioritized oversight.
Ongoing re-evaluation ensures that a supplier's performance is tracked over the life of the relationship, not just assessed once at the point of initial qualification, catching declining performance before it results in a significant quality issue.
How does Supplier Evaluation work?
A typical supplier evaluation process includes:
- Criteria definition. Determine the factors relevant to evaluating suppliers, such as quality, delivery and compliance.
- Initial evaluation. Assess a prospective supplier before approval, which may include an audit or certification review.
- Approval. Add the supplier to an approved supplier list based on evaluation results.
- Ongoing monitoring. Track actual performance data, such as nonconformances and on-time delivery.
- Re-evaluation. Periodically reassess suppliers against defined criteria using accumulated performance data.
- Action. Escalate declining performance through corrective action requests or reconsider supplier status as needed.
Initial Qualification vs. Ongoing Re-Evaluation
| Comparison | Initial Qualification | Ongoing Re-Evaluation |
|---|---|---|
| Timing | Before the supplier is first approved | Periodically throughout the relationship |
| Basis | Certifications, audits, initial capability review | Actual performance data over time |
| Purpose | Decide whether to approve the supplier | Confirm continued suitability or trigger corrective action |
Real-world examples of Supplier Evaluation
A medical device manufacturer evaluates a new component supplier, reviewing their ISO 13485 certification and conducting an on-site audit before adding them to the approved supplier list.
An automotive supplier tracks ongoing supplier performance data, including nonconformance rates and on-time delivery, and issues a supplier corrective action request when a key supplier's performance declines below an acceptable threshold.
An aerospace manufacturer periodically re-evaluates its approved suppliers annually, using accumulated quality and delivery data rather than relying only on the original qualification assessment from years earlier.
Regulations and standards related to Supplier Evaluation
ISO 9001 Clause 8.4 requires organizations to determine and apply criteria for the selection, evaluation and re-evaluation of external providers based on their ability to provide processes, products or services that meet requirements, and to retain documented information of these evaluations and any resulting actions.
ISO 13485, AS9100 and IATF 16949 extend supplier evaluation expectations with industry-specific requirements, often including more rigorous qualification processes, required certifications, and closer monitoring for suppliers providing critical components.
Auditors commonly examine whether evaluation criteria were consistently applied, whether re-evaluation actually occurred at defined intervals, and whether declining supplier performance triggered documented action.
Required by
How QT9 helps with Supplier Evaluation
QT9 QMS supplier evaluation capabilities
- Create dynamic supplier evaluations with a customizable scoring method.
- Generate reports based on individual or group supplier evaluations.
- Track supplier evaluations by any field, with charts and exportable reports.
- Email supplier evaluations and scorecards with one click.
- Give suppliers access to their full evaluation history through the supplier portal.
- Connect evaluation results to corrective actions and risk management.
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Common mistakes with Supplier Evaluation
Common mistakes include applying evaluation criteria only at initial qualification and never revisiting them, missing declining performance that develops gradually over time.
Other problems include evaluating every supplier with the same depth of scrutiny regardless of the risk or criticality of what they provide, and failing to retain documented evidence of evaluations and any resulting actions, which auditors commonly request.
Frequently asked questions
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