---
title: Supplier Evaluation: Definition and How It Works | Aavenir
url: https://aavenir.com/glossary/supplier-evaluation/
description: Supplier evaluation is assessing potential and current suppliers with quantitative and qualitative measures, to approve the right ones and monitor how they perform.
updated: 2026-11-07
---

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# What is supplier evaluation?

Supplier evaluation is assessing potential and current suppliers with quantitative and qualitative measures, to approve the right ones and monitor how they perform.

## What it is for

The main goal is to make sure the company has access to a portfolio of strong suppliers. Evaluation is used both to approve new suppliers and to monitor the performance of current ones, with the aim of lowering procurement cost, reducing supplier risk and driving steady improvement.

## What gets evaluated

- **Cost.**Price, total cost of ownership and payment terms.

- **Quality.**Defect rates, certifications and quality systems.

- **Delivery.**Lead times and on time performance.

- **Capability and capacity.**Whether the supplier can meet current and future needs.

- **Risk.**Financial health, security, compliance and location.

- **Sustainability.**Environmental, social and governance practices.

## How it is done

Quantitative measures come from data: prices, delivery records, quality reports and financial statements. Qualitative measures come from questionnaires, site visits, references and the judgment of the people who work with the supplier. Weighting both against clear criteria keeps the result fair and repeatable.

## How Aavenir handles it

[RFPflow](https://aavenir.com/solutions/rfp-management-software/) scores potential suppliers against weighted criteria during sourcing. [Onboardingflow](https://aavenir.com/solutions/vendor-onboarding-software/) completes qualification checks, and [Obligationflow](https://aavenir.com/solutions/contract-obligation-management-software/) records performance against contract terms once they are working.

## Keep reading

[Vendor ratings Vendor ratings are scores or grades given to suppliers on measures such as quality, delivery, price and reliability. Read more](https://aavenir.com/glossary/vendor-ratings/)[Supplier performance management Supplier performance management measures and improves how suppliers perform, to cut cost and risk and raise quality. Read more](https://aavenir.com/glossary/supplier-performance-management/)[Request for supplier qualification A request for supplier qualification gathers suppliers' credentials to decide who is qualified to bid. Read more](https://aavenir.com/glossary/request-for-supplier-qualification-rfsq/)

Frequently asked questions (FAQ)

## Common questions

###

### What is the difference between supplier evaluation and supplier selection?

Evaluation assesses suppliers against criteria. Selection is the decision that follows, choosing which supplier or suppliers to award. Good selection depends on a sound evaluation. [Read about supplier sourcing](https://aavenir.com/glossary/supplier-sourcing/).

###

### How do you weight supplier evaluation criteria?

Weight each criterion by how much it matters for the category. For critical supplies, quality and risk may outweigh price, while for commodities price may dominate. Agree weights before seeing responses. [Read about bid analysis](https://aavenir.com/glossary/bid-analysis/).

###

### Should current suppliers be evaluated too?

Yes. Ongoing evaluation shows whether a supplier is still the right choice and gives evidence for renewal, renegotiation or replacement. It also flags problems early enough to fix them. [Read about supplier performance reviews](https://aavenir.com/glossary/supplier-performance-review/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

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