Vendor and Contractor Selection
Vendor selection is an evaluation and approval process that businesses can use to determine if prospective vendors and suppliers can meet their organizational standards and obligations once under contract. The end goal is to secure a low-risk, best-in-class vendor and supplier portfolio. Vendors and suppliers both furnish services or goods, but there is a distinction: The term vendor applies to business-to-business (B2B) and business-to-consumer (B2C) sales relationships, while supplier applies only to B2B relationships.
A vendor selection framework supports an organized approach to vet and rank potential vendors. The framework is based on a set of standard criteria to determine prospective vendors’ suitability and any risks they may pose to your company. Vendor selection criteria should support your company mission, ethics, and business goals in the areas of technical competence and quality, cost and financial integrity, ability to communicate, social responsibility, and cultural commitments.
A vendor selection framework supports an organized approach to vet and rank potential vendors. The framework is based on a set of standard criteria to determine prospective vendors’ suitability and any risks they may pose to your company. Vendor selection criteria should support your company mission, ethics, and business goals in the areas of technical competence and quality, cost and financial integrity, ability to communicate, social responsibility, and cultural commitments.
- Documentation of to-be people, process, and systems needs
- Discovery interviews and evaluation with business stakeholders
- Assessment of vendor viability including financials and future functionality roadmaps
- Collaborative and cross-functional approach to short-listing vendors
- Support negotiations to achieve best pricing
- Executive summaries and cross-functional review of results
- Recommend selected vendor(s)