Vendor rating – an instrument to ensure value in procurement process

Successful companies hold their suppliers and vendors who help to grow the business as partners. In recent years, in order to develop the best group of suppliers, regular evaluation of vendors has become one of the most important tasks of the purchasing department of any business, dealing with producing quality products. Emerging usage of vendor rating concept increases the performance of the suppliers and it is directly linked to the result of better quality products, because the quality of the product starts from the selection of raw material itself. This paper presents the overview of the vendor rating process adopted by a manufacturing company in Coimbatore and efforts have been made to propose a vendor rating matrix to the company for rating the vendors.