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Supplier Evaluation Criteria

Supplier Evaluation Criteria

Including, but not limited to:

Cigna seeks suppliers who support our strategic goals and objectives while continually looking for ways to manage our costs. Cigna Sourcing and Supplier Management evaluates suppliers with regard to best value with a particular emphasis on quality, total cost, delivery, innovation and management expertise to meet Cigna's requirements. Suppliers are evaluated on their ability to meet the following criteria:

Supplier Competence

Compliance to specifications

  • Meets specification requirements
  • Meets standards

Customer service

  • Policy and practice
  • Surveys customers
  • Systems to measure customer satisfaction
  • Backup and advice

Quality system for deliverables

  • Certification
  • Documented system

Capability

  • Staffing structure
  • Availability of experienced staff
  • Experience in the industry
  • State of technology

Past performance

  • Experience in the industry
  • Previous experience
  • Customer recommendation

Strategic

  • Location
  • Networking

Innovation

  • Leading technology
  • Creativity

Supplier analysis

Financial viability

  • Satisfies key financial ratios for the industry
  • Full financial disclosure from supplier will be required.

Risk and insurance

  • Adequate insurance
  • Allocate and acceptance of risk

Legal review

Compliance to Cigna contract terms

  • Complies to the terms and conditions

Conflict of interest

  • Existing or potential, or perceived

Legal proceedings

  • Legal proceedings related to contractual issues - past or present

Financial

Total cost of ownership/best value

  • Bid price
  • Ability to propose an innovative financial approach (gain-sharing, etc.)
  • Freight
  • Warranty
  • Price breaks and quantity discounts
  • Satisfies best value analysis
  • Maintenance costs

Financial review

  • Tax
  • Accounting
  • Lease vs. Buy
  • Foreign exchange
  • Payment terms
  • Business justification
  • Insurance
  • Net present value analysis
  • Payment methods (i.e. EDI, etc.)