Standard representation of manufacturing capability information is a necessity for efficient configuration of loosely-coupled supply chains. ManuTerms is a formal thesaurus that provides a set of standard vocabulary that can be used for description of manufacturing capabilities. In this paper, a method is proposed for supplier characterization and classification guided by ManuTerms. The tools developed in this work use the capability narrative of manufacturing suppliers as the input and extract key concepts that refer to certain aspects of manufacturing capabilities in order to characterize and classify manufacturing suppliers. Through an experimental study, the supplier classification method was validated with respect to the level of agreement with human judgment.