How do you choose between two suppliers when they both seem to offer the same products at the same price? How do you know which supplier has the best rating with their customers? Well, one way to find out is to look at their Open Ratings Past Performance Evaluation (PPE). Open Ratings was founded in 1999 and acquired by Dun & Bradstreet (D&B) in 2006. Headquartered in Waltham, MA, Open Ratings specializes in supplier past performance evaluations. The evaluation process is similar to checking references on a resume except more in depth. PPEs are either requested or required by government/state organizations and agencies during the bidding process as a way to determine the best supplier. Once the request is made, the supplier will have to provide anywhere from four to twenty references (customers). These references are then sent a survey of questions to determine their level of satisfaction with that supplier’s performance. The total score of the evaluation is out of one hundred and is relative to similar companies during the same time period. The survey evaluates various customer satisfaction metrics including reliability, cost, order accuracy, delivery/timeliness, quality, business relations, personnel, customer support, and responsiveness. These evaluations are designed to predict future performance and behavior, which can be very helpful to potential buyers. The Open Ratings PPE is needed for government and state organizations because it can provide advanced notice of supplier performance & financial stability problems. The PPE is a fast and efficient way to check a supplier’s references and compare them with similar companies.
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