What are the two primary approaches for evaluating suppliers?  How do they differ?

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Methods of supplier evaluation

            There are diverse ways of performing supplier evaluation. The initial step conducted by most organizations involves creating a survey. This survey will have various questions touching on the supplier’s quality systems. For most of these companies, the best representation of control over quality and production constitutes ISO 9001 certification (Sivapornpunlerd & Setamanit, 2014). The suppliers’ quality is, therefore evaluated as per their certification with this standard.

            Placing a few trial orders to make an evaluation is another conjoint method used. A supplier’s initial qualification will comprise of a review along with an on-site assessment. The survey applies to the suppliers deemed vital for the production process. The supplier’s compliance history is used to determine the frequency of the number of audits to be carried out within a given period (Winter & Lasch, 2016). Most companies will proceed to initiate a quality agreement once they determine that a given supplier is qualified.