As a small business, (less than 10 people, all of who have multiple duties) we have little time or resources for an extensive or superfluous examination of our suppliers. The current methodology is to select a supplier based on historical use or advertised services. If they perform adequately, we continue to use them, if we are dissatisfied, we stop using them. Its as simple as that. Our preferred or approved supplier list is the list of suppliers on the MYOB purchasing system. In other words, one cannot generate a purchase document other than through this system. We recently had a third party audit and the auditor was dissatisfied with this approach and has demanded a supplier evaluation criteria. She obviously has never worked with a small business before and expects an unnecessary and overly complex process. In addition she has demanded goals and objective above and beyond what we currently have. Our goals are simple and the data collected as part of our business. What am I doing wrong? Our goals are Better than 10% ROI Per annum measured bi annually and reported by the GM at management review. Customer feedback better than level 3 as reported by the customer on their own report each month and reported at management review by the factory manager. Finally LTI and MTI stats better than 1 LTI per month and better than 1 MTI per annum, measured monthly and again reported at Management Review by the factory manager.