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How to evaluate suppliers?

One of the most important challenges for managers responsible for supply chain management is the systematic assessment of suppliers. Of course, there is no one universal model for assessing current and potential business partners. However, the vast majority of evaluation is based on indicators QDCTM. What kind of indicators?


QDCTM – this mysterious acronym comes from the following words:

Q – quality

D – timely deliveries

C – costs

T – technology

M – management

Conducting evaluations in the above-mentioned areas allows the selection of suppliers guaranteeing materials and products of appropriate quality, ensuring timely deliveries and allowing for the building of price competitiveness. The assessment also allows you to obtain confirmation that the suppliers have appropriate technological facilities and management knowledge – elements necessary to build a business relationship at the expected level.

What are the benefits of conducting the evaluation?

Regular assessment based on QDCTM indicators allows to identify the majority of opportunities and risks associated with supply chain management. Thanks to such a comprehensive approach, we can design mitigating risk measures and develop suppliers in the most interesting areas, including innovation or CSR. The result of such action is an organization much better prepared for situations that may have a negative impact on its operations and financial results.

Conducting evaluations also allows to classify suppliers and choose among them those with whom it is worth developing cooperation (eg support programs for suppliers development) and those with whom relations should be terminated.

Eveneum advisors help clients in conducting professional supplier evaluation. Thanks to their support, organizations are able to choose the best suppliers and build long-term relationships with them based on mutual benefits. We are happy to help you. We invite you to contact us.