Supplier selection remains one of the most critical activities undertaken by procurement and commercial professionals. The consequences of poor supplier selection can include contract failure, increased costs, operational disruption, reputational damage, and legal disputes.
Whilst procurement practices have evolved significantly over the last three decades, the fundamental challenge remains unchanged: how can organisations identify suppliers capable of delivering sustainable value while minimising commercial risk?
My 10c Model of Supplier Selection and Evaluation provides a structured and comprehensive approach to supplier appraisal. Unlike traditional selection methods that focus primarily on price, the model encourages procurement and contracting professionals to assess suppliers against a broader range of commercial, operational, financial, ethical and strategic criteria.
This article explores the origins of the model, explains each of the ten criteria, demonstrates practical applications across sectors, and considers how the framework can be enhanced through the use of Artificial Intelligence and modern supplier management technologies.
Many procurement failures can be traced back to a single root cause: selecting the wrong supplier. Historically, some organisations have often focused heavily on cost when making sourcing decisions. However, experience has shown that the lowest-cost supplier does not necessarily represent the lowest-risk or highest-value option. Modern procurement and contracting professionals evaluate suppliers across a wide range of factors including capability, capacity, financial stability, quality management, sustainability, innovation, and relationship management.
I developed the 10c model to provide a practical framework for undertaking this evaluation. Today, the model continues to be used by procurement teams, contract managers, supplier relationship managers, and commercial professionals worldwide.
The Carter 10C Model
The model assesses suppliers against ten critical dimensions.
1. Competency
Can the supplier perform the required work?
Assessment considerations include:
Technical expertise
Industry experience
Qualifications and certifications
Track record
References
A supplier lacking competency may struggle to deliver contractual requirements regardless of pricing advantages.
2. Capacity
Does the supplier have sufficient resources to meet demand?
Assessment considerations include:
Workforce availability
Manufacturing capability
Technology infrastructure
Scalability
Supply chain resilience
Capacity failures frequently lead to delays, missed milestones, and performance issues.
3. Commitment to Quality
Is the supplier committed to ensuring the quality of their offering?
Assessment considerations include:
Effective use of QM tools, SPC, FMEA
Active Quality Circles
Focus on QA and not Quality Control
Adequate resources committed to QA
Culture of continuous improvement
Quality management systems
Commitment often distinguishes traditional suppliers from quality providers.
4. Control
Does the supplier operate effective management and quality systems?
Assessment considerations include:
Risk management processes
Regulatory compliance
Audit arrangements
Performance monitoring
Strong control mechanisms reduce operational and contractual risk.
5. Cash
Is the supplier financially stable?
Assessment considerations include:
Financial statements
Credit ratings
Liquidity
Profitability
Debt levels
Financial weakness can expose organisations to significant continuity and delivery risks.
6. Cost
Does the supplier offer competitive and sustainable pricing?
Assessment considerations include:
Total cost of ownership
Lifecycle costs
Pricing structure
Value for money
Cost transparency
Cost should be considered alongside the other nine criteria rather than in isolation.
7. Consistency
Can the supplier consistently deliver required outcomes?
Assessment considerations include:
Historical performance
Service levels
Delivery reliability
Defect rates
Customer satisfaction
Consistency is often a key predictor of future performance.
8. Culture
Is there alignment between organisational values and behaviours?
Assessment considerations include:
Corporate values
Business ethics
Leadership style
Collaborative behaviours
Cultural compatibility
Cultural alignment can significantly influence contract performance and relationship success.
9. CSR
Does the supplier operate responsibly?
Assessment considerations include:
Environmental management
Sustainability performance
Social responsibility
Modern slavery compliance
Ethical sourcing
Increasingly, organisations are expected to demonstrate responsible procurement practices throughout their supply chains.
10. Communication
Can the supplier communicate effectively?
Assessment considerations include:
Responsiveness
Reporting capability
Escalation procedures
Stakeholder engagement
Relationship management
Many supplier disputes originate from poor communication rather than poor performance.
I have worked with many different organisations to facilitate the introduction of the model into their procurement and contracting processes.
Example 1: Selecting an IT Services Provider
A public sector organisation required a supplier to deliver a digital transformation programme. Whilst several bidders offer competitive pricing, evaluation against the 10Cs revealed significant differences in:
Technical competency
Resource capacity
Financial stability
Governance controls
The organisation selects a supplier based on overall value and risk profile rather than lowest cost.
Example 2: Construction Contractor Selection
A contractor was being assessed for a major infrastructure project. Using the 10 c framework enables the evaluators to examine:
Health and safety controls
Project delivery capability
Financial robustness
Sustainability credentials
Stakeholder communication processes
The result is a more balanced and informed procurement decision.
Example 3: Strategic Supplier Reviews
A Housing Association introduce the 10c Model as part of ongoing contractor performance management. Annual contractor reviews assess performance against each criterion, helping identify:
Emerging risks
Performance deterioration
Relationship issues
Development opportunities
Integrating the 10C Model with AI. Artificial Intelligence is creating new opportunities for supplier evaluation. AI tools can assist procurement teams by:
Analysing supplier financial reports
Reviewing sustainability disclosures
Assessing supplier risk indicators
Evaluating performance data
Monitoring market intelligence
AI can improve efficiency but should not replace professional judgement.
The strongest approach combines AI-driven analysis with structured evaluation using the 10C Model.