Automated supplier risk evaluation system

One key aspect in the manufacturing process is the monitoring of the third-party suppliers, a potential disruption in this component would have an impact on the whole chain of manufacturing and potentially have risks in monetary aspects and reputation loss. Even though stated by contract delivery dates and the quality of the delivery content might vary in between shipments even with well-established providers due to technological changes of changes in the quality process. To minimize this risk and to partially take out the subjective human factor, the current paper proposes the implementation of an impartial observer system that based upon a set of key performance indicators will assign a trust rating to each third party. With the option of both human and machine input, the system can be used as an indicator of how reliable the business with a certain entity is and if the risks would be acceptable for a better price offer.