One concept in selecting a vendor is to have an RFP (request for proposal). What are the components of an RFP? Why is it important to assess of the financial stability of the vendor can be a critical consideration when evaluating responses to an RFP?
See the attached file.
REQUEST FOR PROPOSAL
A company starts with determining the needed items and their general characteristics as well as the corresponding volume needed of the said items. These items are normally characterized in terms of price, reliability, and durability (Kotler and Keller, 2006). From this, vendors should show how their products meet or if possible exceed the buyer's (the company's) needs.
After determining the needed items, the company/buyer identifies the most appropriate supplier/vendor through trade directories, contacts with other companies, trade advertisements, and trade shows.
Companies have several means of getting RFPs. General Electric formed the ...
The solution discusses one concept in selecting a vendor is to have an RFP.