Although many organisations try to use internal resources to complete tasks, sooner or later most businesses come across at least one aspect not feasible to do in-house. This is where the search for a vendor begins. As external companies are more competent in a specific area, they can achieve better results when performing tasks related to their expertise.
Vendor networks and relationships are extremely important in a global economy. This is particularly the case if you trade internationally. At docs24, because we work with global clients, we work hard to select the best vendors. But, perhaps, more importantly, work to maintain solid relationships with them for the best customer service, quality, and cost-efficiency. As a result of this, we can deliver the highest quality of work to our clients.
Here are some of our key steps in selecting the best Vendors:
5 Key Steps for Vendor Selection
Analyse Business Requirements
The first step is understanding the business needs: Creating a vendor selection and evaluation team can be very helpful. Once the business has decided which operations to outsource, create a list of requirements potential vendor has to meet. This should take into consideration the price as well as any technical aspects and turnaround capabilities.
Compile a list of suitable vendors: At this stage use the internet or recommendations to find potential vendors. Remember to check online reviews and research their background. Once happy with the list, send out Requests For Information (RFI). Any responses will help to create a shortlist the best-suited vendors.
Send out Quotation & Proposal Requests
Send out proposal and quotation requests to the shortlisted vendors: This will give you more details to evaluate. In order to find the best vendor, consider vendor values, culture and background, as well as the price, turnaround and technology. It is important to work with contractors that share your business approach.
Evaluate the submissions.
Review the proposals received: Assign specific scores to each requirement as this will make it easier to compare the vendors. The vendor with the highest score should be the best option for you.
Negotiation & Contract
The final step is to negotiate and sign a contract with the selected vendor. Prior to the discussions, you should create a list of priorities and suggested alternatives. The contract should clearly address;
- delivery timeframes & costs
- level of confidentiality
- how future changes in requirements will be addressed
Once the process is completed, focus on maintaining a solid working relationship with the chosen vendor and monitor performance by carrying out regular reviews.