TFX Biz-Flow Comprehensive Guide
  • Quick Start
    • Sell Module Guide
      • Introduction
      • Navigating the Sell Module
        • Dashboard
          • Features
            • Access to Critical Data
            • Interactive Reporting
            • Actionable Insights
        • Product Management
          • Overview
          • Adding a New Product & Services
          • Adding Products/Services via CSV
        • Price List Management
          • Overview
          • Setting Up & Updating Prices
        • Customers Management
          • Overview
          • Adding New Customers
          • Customer Information Management
        • Invoice Management
          • Overview
          • Invoice Creation
          • Editing and Deleting Invoices
      • Compliance with LHDN's E-Invoice Enforcement
    • Buy Module Guide
      • Introduction
      • Navigating the Buy Module
        • Dashboard
          • Features
            • Access to Critical Data
            • Interactive Reporting
            • Actionable Insights
              • Purchases with PO
              • Purchases Without PO
              • Detailed Procurement Tracking
        • Purchase Requisition
          • Overview
          • Step-by-Step Guide to Creating a Purchase Requisition
        • Initiating Quotation/Tender Process
        • Vendor Evaluation
        • Selecting a Vendor
        • Supplier Invoices and Goods Receipt
          • Goods Received Note
        • 3-Way Matching Process
        • Handling Discrepancies in Procurement
        • Inventory and Asset Management
        • Additional Procurement Scenarios
        • Conclusion
    • Pay Module
    • Accounting Module
      • Right of Use (ROU) Asset
      • General Ledger
      • Direct Costs
      • Viewing General Ledger Accounts
      • Subsidiary Ledgers
      • About Debit Note
      • Real-Time Financial Statements
    • Manage Module
      • Inventory Module
        • Inventory Management
        • Our Inventory Management Application
        • Product & Material Inventory Ledger
        • Transfers
        • Issues To Production
        • Adjustments
        • Importance of Stock Count
        • Valuation of Inventory
      • Asset Register Module
        • Non-Current Asset Register
        • Fixed Asset Register
        • Depreciation Methods
        • Disposal/Write Off of Fixed Assets
        • Asset Impairment
        • Maintenance History
      • Project Accounting Module
        • Contract/Project Accounting Module
          • Project Accounting
          • Contract Accounting Ledgers
          • Invoicing
      • Data Migration Module
        • Migration at the end of a Financial Period
        • Migration Process for Trade Receivable and Payable
        • Migration of Fixed Assets
        • Migration of Inventories
        • Migration of Other Asset, Liability, and Equity Accounts
        • Migration During a Financial Year
        • Trade Receivables & Payables
        • Our Data Migration Facilitations
        • Sales Invoice Migration
        • Vendors Invoice
  • FAQs
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Vendor Evaluation

User Guide: Evaluating Vendors

PreviousInitiating Quotation/Tender ProcessNextSelecting a Vendor

Last updated 1 year ago

  1. Establish Evaluation Criteria: Identify key criteria aligned with your organization's procurement needs and objectives. Examples include terms and conditions, quality, trust level, past performance, and regulatory compliance.

  1. Define Scoring Methodologies: Assign scores to each criterion using a well-defined and standardized methodology. Scores can be numerical or qualitative, ensuring consistency throughout the evaluation process.

  2. Determine Thresholds: Set minimum acceptable scores for each criterion, typically between 8 to 10. Adjust thresholds based on your organization's needs and risk mitigation strategies.

  3. Risk Mitigation: Assess and mitigate risks associated with vendor selection. Consider financial stability, reputation, and track record. Conduct due diligence, including background and reference checks.

  4. Consider Environmental, Social, and Governance (ESG) Factors: Include ESG criteria in scoring if it aligns with your organization's focus. Evaluate vendors' commitment to ESG principles alongside other criteria.

  5. Subjective Evaluation: Consider subjective factors like vendor culture, fit with organizational values, collaboration, and innovation. These factors may not have assigned scores but can influence the selection decision.

  6. Documentation and Transparency: Maintain systematic records of the evaluation process, including scores and assessments. This ensures fairness, transparency, and compliance with organizational policies.

Conclusion: A structured approach to evaluating and selecting vendors ensures they meet your organization's needs. Consider various criteria, employ risk mitigation, and potentially incorporate ESG factors for informed and successful partnerships.