Vendor Assessment

Vendors have a significant impact on the success of an organization and businesses can face several challenges through unconsciously using poor or inappropriate vendors. Challenges can include capacity constraints, poor quality goods, ineffective delivery schedules, higher costs and poor service levels which can all impact the procuring company in varying degrees. Vendor assessment helps organization identify the right vendors & business associates, who have their capabilities, risk profile, strategy and growth plans in line with organizational goals. SMERA’s Vendor assessment is a comprehensive evaluation of the key risk factors affecting the scalability, sustainability & business performance of the vendor. SMERA’s methodology considers the several operational factors, technical capabilities and financial condition that have bearing on the risk assessment of the vendor.

The objective of this exercise is to bring out detail insight for the following aspects:

  • Delivery - Can vendor meet the expectations on timely delivery
  • Cost - Does vendor have operational abilities and financial soundness to deliver the products/services at low cost to the clients.
  • Quality - Can vendor meet the quality standards prescribed by the client
  • Future Readiness - What’s the level of preparedness of vendor w.r.t, to infrastructure set up and production capability to meet the expansion plans of the client.
  • Business Stability - Do vendors have sustainable business model and have adherence to safety standard and regulatory requirements.


  • Customized Solutions - Risk framework is customized to meet a company’s specific credit risk assessment needs.
  • Due diligence - Site visit and detailed management discussion by expert team of analyst for better understanding of the business model and management ability.
  • Comprehensive report - Covering financial and non-financial parameters such as financial position, operational performance, sales, technical competency, employee size, number of years in existence and management quality.
  • Health Check - Conducts 360-degree check with bankers, customers for gathering feedback on the transactional history and operational capability.
  • Mapping Performance Risk Matrix - Cost effective measure to strategically map the supplier against one another through the standardized approach of assessment.

Benefit to organization:

  • In-depth assessment on the financial and business strength of the vendor
  • Can measure and compare vendor performance
  • Can avoid supply chain disruptions
  • Basis the outcome can add/ change supplier

Process and Activity Flow


SMERA Advantage:

  • Pioneer in SME Rating: SMERA is World’s First SME Focused Rating Agency and has created the eco-system for SME Rating.
  • Rating Experience: Experience of rating more than 47,500 SME enterprises across 150 industries and assigning more than 4750 bank loan ratings comprises of mid and large sized entities.
  • Memorandum of Understanding (MOUs) with leading banks/NBFCs/financial institutions: High acceptance of SMERA Ratings among the lenders (investors) as well as borrowers (issuers). 40 MOUs with leading banks/NBFCs/financial institutions is a strong testimony to this fact.
  • Regulatory approvals: SMERA Ratings is accredited by RBI as ECAI (External Credit Assessment Institution) to carry out Bank Loan Ratings under Basel II norms. SEBI has also approved SMERA to rate Bonds, NCDs, Commercial Paper and other capital market debt instruments.