Answering the above questions will help you start thinking about the suppliers in a much more comprehensive way than most businesses ever will. Still, to be accurate, you have to determine how important each of these criteria are to your business.
For example, is the time spent restoring your service more or less of a priority than the cost of switching? Is competitive pricing as valuable as alignment with long-term strategy? In our experience, most businesses put too much importance on annual spend, where it accounts for anywhere from 80% to 100% of a supplier’s value. In our experience, 10% for supplier impact is more realistic.
Your priorities will likely be different from other businesses. For example, publicly recognised brands may rank impact on reputation much higher than a B2B commodity supplier. Think about how important each factor is to your business, then weight them accordingly.