Supplier evaluation form
A supplier evaluation form scores a supplier against what matters to you, such as quality, price, delivery, service, financial stability and compliance, so you choose suppliers, or decide whether to keep one, on evidence rather than instinct. This free Excel template checks must-haves first, then weights each criterion and compares up to three suppliers side by side, with the weighted scores and totals worked out for you.
Running a company of 30 to 200 people? Documents like this are now worth money.
Use it when choosing a new supplier, renewing a contract or reviewing the ones you already use, and keep the finished form as the record of why you chose them.
What's in the template
The workbook has a read-me, a must-haves sheet, the scoring sheet and an example of each. Must-haves are pass or fail: a supplier that fails one is out, however well it scores. The scoring sheet multiplies each criterion's weight by each supplier's score from 1 to 5; with weights adding up to 100%, each total is out of 5. The example, from a fictional online retailer choosing a parcel carrier:
| Criterion | Weight | Supplier A score (1-5) | Supplier A weighted | Supplier B score (1-5) | Supplier B weighted | Supplier C score (1-5) | Supplier C weighted |
|---|---|---|---|---|---|---|---|
| Quality | 20% | 4 | 0.80 | 3 | 0.60 | 4 | 0.80 |
| Price | 25% | 3 | 0.75 | 5 | 1.25 | 3 | 0.75 |
| Delivery | 25% | 4 | 1.00 | 3 | 0.75 | 5 | 1.25 |
| Service | 10% | 4 | 0.40 | 2 | 0.20 | 4 | 0.40 |
| Financial stability | 10% | 4 | 0.40 | 3 | 0.30 | 3 | 0.30 |
| Compliance and risk | 10% | 4 | 0.40 | 3 | 0.30 | 3 | 0.30 |
| Total | 100% | 3.75 | 3.40 | 3.80 |
The scale, from the read-me: 1 unacceptable, 2 weak, 3 meets our needs, 4 better than we need, 5 excellent, with the evidence for each score in the Notes column.
How to evaluate suppliers
- Write the must-haves first: conditions no number of points can make up for, such as the right insurance, a certificate your customers insist on, or signed data protection terms.
- Choose five to eight criteria and say what evidence you'll look at for each. "Delivery" becomes "on-time rate in a four-week trial and the latest collection time".
- Set the weights before any quotes arrive, so nobody can tilt them towards a favourite. If price is a quarter of the decision, give it 25%.
- Gather the evidence: samples or a trial, references from customers of a similar size, filed accounts, insurance certificates and policies.
- Score separately with at least two people, then agree a score for each line and note why.
- Decide and record it. Keep the form with the contract and add the winner to your approved supplier list.
- Re-score existing suppliers every year, or straight after a serious problem, using what actually happened: deliveries, quality, invoices, how they handled complaints. Suppliers you couldn't replace quickly belong on your risk register as well.
Example: choosing a parcel carrier
A fictional 70-person online homewares retailer ran a four-week trial with three carriers. Carrier B was the cheapest and scored 3.40, but it failed a must-have, with goods-in-transit cover below the retailer's minimum, so it was out. Carrier C scored 3.80 and carrier A 3.75.
A gap of 0.05 is a tie, not a win. The retailer chose C for its stronger on-time record in the trial, but only once C had signed the data processing terms still marked Not checked, and kept A as a second carrier for the November peak. The form, with the trial figures behind each score, went in the contract file.
Checks worth making
- Financial stability (UK): Companies House shows any company's officers, filed documents, charges and insolvency information for free. Late filings and frequent changes of director are worth a question.
- Data protection (UK): if a supplier will handle personal data for you, UK GDPR says you may only use a processor that provides sufficient guarantees, under a contract that meets Article 28. The ICO explains what that contract must cover.
- Cyber security (UK): for suppliers that connect to your systems or hold your data, ask whether they're certified to Cyber Essentials, the minimum standard the government recommends. The NCSC notes that a growing number of organisations require it from suppliers bidding for work.
- Modern slavery (UK): commercial organisations with a turnover of £36 million or more must publish an annual statement on the steps they've taken to deal with modern slavery risks in their business and supply chains. If that includes you or your customers, ask suppliers what they do.
- ISO 9001: if you're certified, the standard expects you to evaluate, select and monitor external providers against criteria you set, and to keep records of it. This form can be that record.
These points summarise official guidance; they aren't legal advice.
Common mistakes
- Weighting price so heavily that every other criterion is decoration.
- Setting the weights after seeing the quotes.
- Scores without evidence, so nobody can explain a 4 a year later.
- Letting a high score override a failed must-have.
- Reading too much into small gaps. A difference of a few hundredths is a tie; settle it on the criterion that matters most.
- Evaluating once and never again. Suppliers change owners, staff and prices.
Frequently asked questions
What criteria should a supplier evaluation include?
Usually quality, price or total cost, delivery, service, financial stability and compliance: insurance, data protection, health and safety and certifications. Add anything specific to what you're buying, such as technical support, and drop criteria that won't change the decision.
How often should suppliers be re-evaluated?
Review important suppliers at least once a year against how they actually performed, and straight away after a serious failure. Low-value suppliers that are easy to replace can be checked less often.
What is an approved supplier list?
The suppliers your company has evaluated and allows staff to buy from, usually with what each is approved for. A purchase order for a supplier that isn't on the list should need extra approval.