Supplier Evaluation - key tool for supplier performance management

• Reliability - indicates supplier’s ability to meet commitments and be trustworthy in day to day activities. This parameter directly relates to the risk factor of engaging with this supplier. Higher number means less risk. 
• Financial Stability - indicates supplier’s ability to meet commitments without increasing your own risk due to their financial situation. If a supplier cannot meet obligations due to financial problems, your own reputation with customers may suffer. Higher number means less risk. 
• Quality of product or service - indicates potential fit between supplier’s quality standard and the one of your own. Ultimately the quality of your product is directly impacted by the level of product quality provided by your suppliers. Higher number means better quality.
• Competitive Pricing - indicates how much supplier pricing is in line with competition and current market conditions. In the current economic climate pricing is one of the reasons people are aggressively reviewing their supplier base. Higher number means better price benefit.
• On-time delivery - indicates supplier’s ability to meet deadlines on an on-going basis. This is where your supplier reputation defines your reputation. Today, suppliers become an extension of your own manufacturing or assembly lines. In the world of orders placed via the internet your ability to meet delivery expectations very often will determine the next purchase from this customer. This could also lead to lower carrying costs as you will require a lower safety stock and inventory investment. Higher number means higher percent of timely delivery.
• Customer Service and Communication - helps assessing how much you can rely on this supplier to address problems as they arise and have a good channel of communication on an on-going basis. Picking a supplier does not just mean buying what that supplier has to offer. It is more often about having access to the right people to address problems and ability to coordinate timely resolutions. Language and culture very often are critical for successful communication and good service. Higher number means better customer service.
• Informative and functional Website - indicates information availability on this supplier and their products and services on the web. This parameter will help you decide for yourself whether to engage with this company or not given the amount of information you can get on them. Higher number means more data is available on the web.
• Approach to Partnership - if this is about a strategic supplier choice, this parameter will help assess if your goals and the goals of this supplier can be aligned. This plays an especially important role in any plans for growth, achieving diversity and providing good service. Higher number means better alignment of long term objectives.
• Innovation - shows commitment of this supplier to innovation. Innovation is a key foundation upon which your own business can either strive or decline. When product launch times and time to market are as critical as ever innovation is key to meet these challenges. Higher number means greater dedication to innovation.
• Environmental Record - helps you assess this supplier’s environmental practices. Going green these days is not only a good practice but often times a necessity. Buying from polluters can really damage your own reputation. Higher number means better environment record and policies.
• Social Accountability - is an indicator of supplier’s labor policies, health and safety record, human rights and other factors (See http://www.sa-intl.org/_data/n_0001/resources/live/2008StdEnglishFinal.pdf for more details on social accountability standards). When picking a new supplier this should be a factor for serious consideration. Higher number means higher social accountability standards.

If you find holes in this logic, please let me know