There are always numerous vendors seeking to sell you their product. You have been made the team leader for proposing a security-sensitive product. In order to evaluate each vendor, develop a list of criteria and explain each criterion so that each member of your team will be able to evaluate the product.© BrainMass Inc. brainmass.com October 1, 2020, 6:46 pm ad1c9bdddf
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Posting 81431 - VENDOR SELECTION
Choosing the best vendor to deliver a good or service can often be a very complex decision. When procuring complex goods and services, organizations often come to a quagmire when determining what is really needed. Some decision-makers may already have a vendor in mind. Others have their own ideas of what constitutes best value. The criteria for selecting the appropriate vendor should be determined by the type of product or service.
VENDOR PERFORMANCE CRITIERIA
Depending on the organization needs, any one of these criteria may have more weight in the review process of selecting a vendor. Any vendor demonstrating their business' capacity to meet or exceed these criteria will help set you apart from your competitors.
1. Value. Value is more than good prices. Price should not be the sole determining factors. Quality, service and delivery are very importing in strategic review of vendors.
2. Capacity/Distribution - What is the scope of the organization? Does the organization have high-value requirements? Vendors must have the capacity and distribution capability of meeting requirements over wide geographic areas. For smaller businesses, strategic alliances can help to accomplish this.
3. Electronically Capable. Suppliers should have the ability to conduct business electronically with electronic/internet-based equipment.
4. Stability. Vendors must be both solvent and able to meet long-term contractual obligations.
5. Diversity: Suppliers diversity promotes development and provides maximum opportunity for minority-, women- and disabled-owned business to participate. Vendors must be able to demonstrate support for diversity, equity and people with disabilities in the work place.
6. Workplace Environment. Vendors must have established policies, practices and standards in place promoting a safe and healthy environment.
VENDOR PURCHASING CRITIERIA
An organizations' Purchasing Department is responsible for the selection of vendors that provide cost effective products and services in a timely manner. Purchasing should monitor vendors with input from end user departments on a continuing basis. Various purchasing data reports, user inquiries, purchasing/expediting experiences, etc., should be catalogued and maintained in vendor files. Existing vendors should be evaluated on the following:
1. Responsiveness to emergencies, delivery lead time
2. Vendor innovation (help to improve quality and reduce costs)
3. Adherences to polices (appointment, invoice processing, etc.)
4. Back Orders
5. Invoice Discrepancies, Order errors
6. Committed pricing, discount pricing, price increases and favorable term negotiations
7. Financial stability (based on consideration of increased contracting or on poor performance.
8. Contractual compliance
IMPORTANT FACTORS FOR 'IT' EXECUTIVES:
Ninety-one % of IT Executives believe it is important to critical that ...
Six vendor performance criteria and eight vendor selection criteria are discussed.