vendor rating scale procedure analysis

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Vendor ranking refers to the results of a formalized assessment scheme. In the main, vendors are provided with titles and different statuses according to their level of efficiencies, such as lead-time, arrival, cost, and other considerations. In particular, the vendor ranking is hierarchically placed from the lowest to the highest and, in each rating, the business is attached to the center of two companies. In other companies, the ranking of the manufacturer occurs as an award scheme or as a qualification form.
Seller rating
Many businesses choose vendors that play a major role in the production of products, flawless facilities provided on schedule. There are processes in place to identify well-equipped vendors to take on the job. A good example of these systems is vendor rating (Muralidharan et al., 2001).

Review Process

The only way of attaining Vendors’ evaluation is by examining the process. The exercise begins with the identification of suppliers who can provide with required goods and services along with similar strategies as those of the purchasing company. Crucial variables used as criteria for supplier assessment to be determined. Such factors facilitate the process by increasing services rendered and reducing the cost incurred. After evaluating commonly used elements, a strategy that ranks or judges vendors on each element is formulated. With that in mind, the outcome can be Likert-scale positioning or numeric rating then weighted by pooling touch base and merchant rating. The process is considered compound, because different components are either crashing or reciprocal (Muralidharan et al., 2001).

Once determined, the evaluation framework is formalized with the providing firm via some formal statement handling. Once the customer company is assured that the seller perceives the pattern and is capable and unforced to take an interest, the appraisal process commences. The appraisal could be an advancing process that could happen at a preordained time brace such as quarterly. Apparently, the valuation must be cleared to the partaking vendor with a few companies administered general marketer standings. Open issues are formally exhibited by the seller to defeat the intended problem that may occur. Several customer firms require the merchant to establish a proceeding with a shift in the preordained critical area.


To conclude, vendor evaluation today should reflect the strategic focus of the buying organization’s environmental activities. Hence, a few companies have recently created vendor-ranking schemes that place remarkable weight on the environmental criteria. Vendor evaluation is a crucial practice, since it ensures companies to have CSR programs configured and adhere to legislative directions and rules.


Muralidharan, C., Anantharaman, N., & Deshmukh, S.G. (2001). Vendor rating in purchasing scenario: A confidence interval approach. International Journal of Operations and Production Management, 21(9/10), 1305-1325. Retrieved on October, 2001 from

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