6.4 Supplier Evaluation (02/01)

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Supplier evaluation is the process for determining financial and performance capabilities for a Supplier. This evaluation process is the responsibility of both the requisitioner and Procurement. This evaluation process does not need to be done for Suppliers providing low dollar, standard items or Suppliers who have established a satisfactory performance record at MIT. The Buying Agent should consider this evaluation process when a purchase order of significant value is to be placed with a company with whom the MIT has had no previous dealings.


Supplier evaluations can be done through a number of methods, a few of which are listed below:

A. Financial Review

1. Annual Report and 10K Report – review and analyze

2. Dun & Bradstreet reports – available through the Director of Procurements Office.

B. Reference Checks

Ask questions based on performance criteria (i.e. on-time delivery, defect rate, customer service).

C. Reputation in the Industry – does the company have a long standing and/or good reputation throughout their industry?

D. Site Visits – walk through of plant and/or offices

Review their administrative procedures as well as operating procedures.