Explanation
You set the criteria beforehand, for example product quality, delivery reliability, safety and environmental performance, certificates and compliance with agreements. At selection you assess new suppliers, for example with a questionnaire or references. Afterwards you follow their performance during the cooperation.
You record the results, often as a score or category, and keep them in a list of approved suppliers. If a supplier performs below standard, a conversation, an improvement plan or, in the extreme, ending the cooperation follows. You repeat the evaluation at a fixed moment.
A supplier audit is a separate, deeper check on site, while the evaluation gives the overall picture. For subcontractors, safety often plays a role too, such as a VCA certificate and the competence of personnel. Which requirements apply depends on your sector and your clients.
Example from practice
A construction company evaluates its subcontractors every year on quality of work, compliance with agreements, safety performance and valid certificates. A subcontractor with expired certificates is temporarily not eligible for new jobs.
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