Posted on 06/09/2017 in Category 1

6 steps to select right vendor _Search at Vendor Marketplace Online

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6 steps to select right vendor _Search at Vendor Marketplace Online

The vendor selection process can be a totally complex and emotional project if you don't know how to search a vendor from the very begin. Here are five steps that will help you choose the right vendor for your B2B business


This blog will show you the way to investigate your business requirements, search for potential vendors, lead the group in searching, and selecting the winning vendor and provide you with insight on contract obligations and avoid some common vendor negotiation mistakes.


1. Analyze the Business Requirements

  • Assemble an Evaluation Team for Vendor Selection
  • Define the Product, Material or Service that is Required
  • Define the Technical and Business Requirements
  • Define the Vendor Requirements
  • Submit Vendor Requirements to Vendor Marketplace


Before you start to search vendor information or perform interviews, gather a group of people who have a stake on this particular vendor or service provider selection. The first project that the vendor selection team desires to accomplish is to outline, in writing, the product, material or services for which you are attempting to find a vendor. Next, define the technical and your business requirements. Also, outline the vendor requirements. Finally, publish your vendor requirements, the vendor needs to the categories relevant to this vendor selection process and gets their inputs. Have the vendor selection team analyze the requirements and create a final vendor requirement document. Once the Vendor requirement document is ready, you can submit vendor requirements to the popular vendor directories, or vendor marketplaces like vendor bazaar.


2. Vendor Search - Finding the Right Vendor

  • Compile a List of Possible Vendors from vendor marketplace
  • Select Vendors to Request More Information From
  • Check vendor reviews, feedbacks and bookmarked vendors
  • Write a Request for Information (RFI)
  • Evaluate Responses and Create a "Short List" of Vendors


Now which you have an agreement at the business and vendor requirements the group now need to begin to search for feasible vendors who is capable of delivering the materials products or services as per the business requirements.

This group may also study the recommended vendor proposal received from vendor marketplace where the vendor requirements are posted online.


The larger the scope of the vendor selection process the more vendors you must put on the table. Of course, not all vendors and service providers will meet your minimum requirements and the group must determine which vendors and suppliers you want to get more information. To get more details for the vendors, the group can, of course, look in popular vendor directories, the vendor reviews, feedbacks and comments about the vendors in vendor marketplace. Next step is to write a Request for Information (RFI) and send it to the selected vendors. 


Finally, compare their responses and select small numbers of vendor business to be able to make the "Short List" and pass on to the next round.


3. Request for Proposal (RFP) and Request for Quotation (RFQ)


The business requirements are described and you have a brief listing of vendors which you want to assess. It is now time to write down a Request for Proposal or Request for Quotation. Whichever format you decide, your RFP or RFQ need to comprise the subsequent sections in general. Some of the additional points may be required based on the particular vendor requirements:


  1. Submission Details
  2. Introduction and Executive Summary
  3. Business Overview and Background
  4. Detailed Specifications
  5. Assumptions and Constraints
  6. Terms and Conditions
  7. Selection Criteria


4. Proposal Evaluation and Vendor Selection


  • Initial Review of All Vendor Proposals
  • Record Business Requirements and Vendor Requirements
  • Assign Importance Value for Each Requirement
  • Assign a Performance Value for Each Vendor Requirement
  • Calculate a Total Performance Score
  • Select the Winning Vendor


The essential objective of this phase is to reduce people emotion and political positioning for you to arrive at a selection that is in the best interest of the business.  Be thorough in your research, seek input from all stakeholders, if need be sought input from people outside of the vendor selection group, and use the above method to steer the team to a unified vendor choice decision

Read more about Evaluate Vendor Proposals and Select a Vendor in 7 Easy Steps


5.  Contract Negotiation Strategies

 

The final step in the vendor selection method is developing a vendor negotiation strategy. Remember, you need to "partner" with your vendor and no longer "take them to the cleaners." A win-win situation for both vendors and business is important for term success of the business.  Review your goals for your contract negotiation and plan for the negotiations be covering the following gadgets:


  • List Your Priorities Along With Plan "B"
  • 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 Constraints and Benchmarks
  • Assess Potential Liabilities and Risks
  • Confidentiality, non-compete, dispute decision, changes in requirements
  • Do the Same for Your Vendor (i.E. be prepared to walk with them in their shoes and position)

Read more about Contract Negotiation Strategies at vendorbazaar - vendor marketplace

6. Contract Negotiation Mistakes

The smallest mistakes that can kill effective contract negotiation process. Avoid contract negotiation errors and keep away from jeopardizing an otherwise efficient contract negotiation system and your mission of accomplishing the project with the selected vendor.

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