How to choose a supplier with a simple scoring method
Compare quotes fairly instead of choosing on price alone.
The cheapest quote is not always the best. A supplier who delivers late or sends poor quality can cost you more than you saved. A simple scoring method helps you compare suppliers fairly.
Step 1: Get at least three quotes
Ask each supplier to quote for exactly the same items, quantities and delivery terms. Otherwise you are comparing different things.
Step 2: Pick your criteria and give each a weight
Choose what matters to you and give each criterion a weight out of 100. For example: price 35, quality 25, delivery time 20, payment terms 10, after-sales support 10.
Step 3: Score each supplier from 1 to 5
Give each supplier a score for every criterion, where 1 is poor and 5 is excellent. Multiply each score by its weight, add them up and divide by 100. This gives each supplier a score out of 5.
An example
| Criterion (weight) | Vendor A | Vendor B | Vendor C |
|---|---|---|---|
| Price (35) | 4 | 3 | 5 |
| Quality (25) | 3 | 5 | 4 |
| Delivery time (20) | 5 | 3 | 3 |
| Payment terms (10) | 3 | 4 | 4 |
| After-sales support (10) | 2 | 5 | 4 |
| Weighted score | 3.65 | 3.80 | 4.15 |
Vendor C wins here, even though Vendor A scores best on delivery.
Before you commit
- Ask for references or look at ratings from earlier customers.
- Check the warranty or return policy.
- Start with a small order to test the supplier.
A template that does the math
My Excel Vendor Comparison Sheet calculates the weighted scores and ranks up to five suppliers, and it also compares quotes item by item.
Have a task in mind?
Tell me what you need done and by when. I'll reply with how I can help.