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The  can be a very complex and sensitive task if you are unaware of the approach from the start. This article will show you how to choose the right vendor for your business. This article will show you 5 things:

1. Inspect the Business Requirements

Before getting started, assemble a team of experts who have a complete interest in this particular vendor selection process and begin to gather data or perform interviews. The first task that the vendor reviewing team needs to accomplish should be in written categorizing the product, material or service and then start searching a reliable vendor. The second task is to define the technical and business requirements. The third task is to define the vendor requirements. In the end, publish your document to the areas related to this vendor reviewing process and seek their data. Get your team to examine the comments and create a final document

​2. Searching Quality Vendor:

Now the actual work starts, the assembled team now must start to search for possible vendors that are capable of delivering the material, product or service. The larger the scope of the vendor selection process the more vendors you should put on the table. Not all vendors will meet your desired requirements, so the team needs to decide which vendors you will seek more information from. The best way is to print an (RFI) Request for Information and send it to the vendors which are selected by the team. After receiving the response, evaluate and select a small number of vendors that will make the “Short List” and move on to the next round.

 3. RFP or RFQ?

When the business requirements are established and you have a short list of vendors that you want to select. Now write and send a Request for Proposal or Request for Quotation. After deciding which format you are sending make sure RFP or RFQ contains the following sections:

  • Submission Details
  • Introduction and Executive Summary
  • Business Overview and Background
  • Detailed Specifications
  • Assumptions and Constraints
  • Terms and Conditions
  • Selection Criteria

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4. Proposal Evaluation and Vendor Selection

The main purpose of this phase is to lessen the human emotion and political positioning in order to reach a decision that is in the best interest of the company. Be careful in your investigation, seek information from all stakeholders and use the following methodology to lead the team to a consolidated vendor selection decision:

  • Introductory Review of All Vendor Proposals
  • Record Business Requirements and Vendor Requirements
  • Assign Importance Value for Each Requirement
  • Assign a Performance Value for Each Requirement
  • Determine a Total Performance Score
  • Choose ​the Winning Vendor

5. Contract Negotiation Strategies

The final stage in the vendor review process is forming a contract negotiation strategy. The best way is to “partner” with your vendor and not “take them to the cleaners.” Review your goals for your contract negotiation and plan for the meetings be covering the following items:

 

  • List Rank Your Preferences Along With Alternatives
  • Know the Difference Between What You Need and What You Want
  • Know Your Bottom Line So You Know When to Walk Away
  • Define Any Time Limitations
  • Evaluate Potential Possibilities and Prospects
  • Confidentiality, non-compete, dispute resolution, changes in requirements

 

These are certain things you need to keep in mind before reviewing your vendor. Trusting your instincts and evaluating the RFP or RFQ can help you choose the right vendor for yourself. To know more about vendor review, visit our website http://www.tradove.com.

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