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Home→The Westburn Dictionary of Marketing→V→vendor rating

vendor rating

Definition:
The organizational buyer's evaluation of existing or potential suppliers against criteria which are deemed by the buyer as important if the supplier is to be considered as a potential source of supply. Vendor rating can be conducted formally using a vendor assessment questionnaire which the potential supplier has to complete in order to be considered. The organizational customer may also send an audit team to the supplying company to evaluate it on the criteria which are deemed important. These may include factors such as location, financial stability, manufacturing capacity and technological competence, work-force relations, and general management quality. Suppliers who are deemed unsatisfactory may be asked to make improvements in order to be actively considered as a qualified supplier.

Cross-References:
[supplier development] [supplier management]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Stephen T. Parkinson], [1998].