The proper selection of suppliers is a key factor in strengthening and efficiently managing the supply chain. However, to ensure that this choice continues to contribute consistently to the company’s growth, it is necessary to conduct periodic evaluations to guarantee that suppliers still meet the initial criteria with which they were evaluated. This is known as supplier reevaluation.  

Supplier re-evaluation is necessary to measure the performance level of current suppliers

In order to ensure that the commercial alliance is beneficial and that the companies that provide their products or services continue to be suitable for the purchasing company. Additionally, this process has benefits such as:

• Risk Reduction: Helps measure the risks associated with the commercial alliance and identify and manage risks arising from dependency on certain suppliers.

• Cost Reduction: Optimizes costs by reviewing and renegotiating contracts to obtain better prices or terms. 

• Strategic Adjustments: Ensures that suppliers align with the organization’s vision and strategic objectives and adapt to its needs.

• Legal Compliance: Ensures that suppliers comply with all norms and regulations related to the commercial alliance. 

¿When to Conduct Supplier Reevaluation? 

There is no specific date to carry out the reevaluation, since each purchasing company and each supplier is different, but these must be carried out periodically to ensure efficiency in the processes. Some key moments that should be taken into account when reevaluating suppliers are:

• Market Condition Changes: When there are significant changes in raw material prices, shortages, or changes in laws or policies applicable to the company.

• Performance Issues: Reevaluation is necessary if one or more suppliers are failing to meet quality, production standards, or if there are constant complaints from end consumers.  

• Changes in Business Strategy: When the company decides to shift its strategic focus, such as new product lines, markets, or sustainability policies.

Parameters for Supplier Reevaluation

Reevaluation should consider parameters based on the initial evaluation criteria and the current situation of the purchasing company, such as its needs and expectations. Additionally, factors such as quality, production capacity, delivery times, and compliance during the contract period between the parties should be assessed to achieve efficiency and success in supply chain management.

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