Evaluating suppliers is a crucial task for most companies, often entailing a complex analysis of various parameters and variables. This complexity is heightened for companies sourcing diverse products globally from suppliers of different cultural backgrounds. Meeting demands across sustainability, food safety, origin, and quality adds to the challenge. Robust supplier evaluation holds significant business importance for several reasons. Firstly, it aids in identifying risk factors and underlying inefficiencies, enabling proactive problem-solving. Secondly, it enhances performance visibility, empowering companies to pinpoint areas for improvement. This, in turn, can drive better performance from suppliers by providing clearer insights into necessary enhancements or procedural adjustments. Sample of 216 vendors associated with food industry were surveyed with the help of a questionnaire to know the impact of Vendor Evaluation in the Business Performances of Food Industry Firms and concludes that there is significant Impact of Vendor Evaluation in the Business Performances of Food Industry Firms.