Since 1996, JaxWorks has offered a suite of Free Excel workbooks and spreadsheets, and associated MS Word, PDF

and
HTML documents, that cover a number of financial, accounting and sales functions. These are invaluable small business
tools.

Also included Free are:

- business plan tools, including spreadsheets and excellent instructions
- Excel functions glossary and guide;
- free training courses for most Microsoft Office applications. These guides are in PDF format and rival commercial books!
- comprehensive list of acronyms, ratios and formulas in customer financial analysis, and financial terms;
- suite of online calculators, including, breakeven analysis, productivity analysis, business evaluation;
- Altman Z-Score (covering publicly and privately held firms, and small businesses);
- and payroll analysis.

If you are involved in financial analysis at any level, or want to learn more about MS Excel and other applications in the
Office suite this site is invaluable.

© Copyright, 2010, Jaxworks, All Rights Reserved.

 Vendor Evaluation Analysis
For
Your Business, Inc.

How can the small business owner objectively evaluate the various
advantages and disadvantages of each vendor? One method is this form
that evaluates each supplier on key purchasing variables.

Enter numbers in Blue in unshaded cells only.

Step 1 - Criteria.
Assign weights to each criteria to reflect its relative importance to your business.

Criteria Weight
Quality = 35
Price = 30
Prompt Delivery = 20
Service = 10
Support = 5
Total 100

Step 2 - Grading scale for each criteria

Quality Number of acceptable lots from vendor divided by total
number of lots from vendor.
Price Lowest quoted price of all vendors divided by vendor X.

Prompt Delivery Number of ontime deliveries from vendor divided by total

number of deliveries by vendor.

Service A subjective evaluation of the variety of services offered by

each vendor.

Support A subjective evaluation of the advice and assistance

provided by each vendor.

Step 3 - Compute a weighted score for each vendor

© Copyright, 2010, Jaxworks, All Rights Reserved.

 VENDOR 1
Weighted Score
Criteria Weight Grade (Weight X Grade)

Quality = 35 0.90 31.50

Acceptable Lots = 9
Total Lots = 10

Price = 30 1.00 30.00

Lowest Quote = 12.50
Vendor 1 Quote = 12.50

Delivery = 20 1.00 20.00

Ontime = 10
Total = 10

Service = 10 0.80 8.00

Satisfied = 8
Total = 10

Support = 5 1.00 5.00

Requests = 5
Total = 5
94.50

© Copyright, 2010, Jaxworks, All Rights Reserved.

 VENDOR 2

Weighted Score
Criteria Weight Grade (Weight X Grade)

Quality = 35 0.80 28.00

Acceptable Lots = 8
Total Lots = 10

Price = 30 0.93 27.78

Lowest Quote = 12.50
Vendor 1 Quote = 13.50

Delivery = 20 0.80 16.00

Ontime = 8
Total = 10

Service = 10 0.80 8.00

Satisfied = 8
Total = 10

Support = 5 0.80 4.00

Requests = 4
Total = 5
83.78

© Copyright, 2010, Jaxworks, All Rights Reserved.

 VENDOR 3

Weighted Score
Criteria Weight Grade (Weight X Grade)

Quality = 35 0.70 24.50

Acceptable Lots = 7
Total Lots = 10

Price = 30 1.00 30.00

Lowest Quote = 12.50
Vendor 1 Quote = 12.50

Delivery = 20 0.60 12.00

Ontime = 6
Total = 10

Service = 10 0.70 7.00

Satisfied = 7
Total = 10

Support = 5 0.20 1.00

Requests = 1
Total = 5
74.50

Based on this analysis you should purchase from the highest vendor rating. Which is =

94.50

© Copyright, 2010, Jaxworks, All Rights Reserved.

© Copyright, 2010, Jaxworks, All Rights Reserved.