How you meet the selection criteria for vendors

9 golden rules to addressing the key selection criteria for a job - SEEK Career Advice

how you meet the selection criteria for vendors

If it's the job for you stop and think hard about the key selection criteria. The key criteria for a Use your network to find out more about the culture. This will help . 3 days ago Below are 9 LMS vendor selection criteria you can use to see how an LMS The secret is to find an option that offers the support services you. When sourcing a new supplier, how do you prioritize supplier selection criteria? Learn eight common supplier selection criteria and how to develop a criteria.

Drawing up a shortlist of suppliers Once you've got a clear idea of what you need to buy and you've identified some potential suppliers, you can build a shortlist of sources that meet your needs. When considering the firms on your shortlist, ask yourself the following questions: Can these suppliers deliver what you want, when you want it?

Supplier selection process

Are they financially secure? How long have they been established? Do you know anyone who has used and can recommend them? Are they on any approved supplier lists from trade associations or government?

Do some research and try to slim your list down to no more than four or five candidates. It's a waste of time for you and the potential supplier if you approach them when there's little chance of them fulfilling your requirements.

Choosing a supplier Once you have a manageable shortlist, you can approach the potential suppliers and ask for a written quotation and, if appropriate, a sample.

how you meet the selection criteria for vendors

It's best to provide them with a clear brief summarising what you require, how frequently you'll require it and what level of business you hope to place.

Get a quotation It's worth asking potential suppliers to give you a firm price in writing for, say, three months. You can also ask about discounts for long-term or high-volume contracts. Compare potential suppliers When you've got the quotation, compare the potential suppliers in terms of what matters most to you. For example, the quality of their product or service may be most important, while their location may not matter. Price is important, but it shouldn't be the only reason you choose a supplier.

Lower prices may reflect poorer quality goods and services which, in the long run, may not be the most cost effective option. Be confident that your supplier can make a sufficient margin at the price quoted for the business to be commercially viable. Check that the supplier you employ is the one that will be doing the work.

Some suppliers may outsource work to subcontractors, in which case you should also investigate the subcontractor to determine if you are happy with this arrangement.

Wherever possible it is always a good idea to meet a potential supplier face to face and see how their business operates. Understanding how your supplier works will give you a better sense of how it can benefit your business.

And remember that your business' reputation may be judged on the labour practices of your suppliers. It makes good business sense to consider the ethical dimensions of your supply chain. Negotiate terms and conditions Once you've settled on the suppliers you'd like to work with, you can move on to negotiating terms and conditions and drawing up a contract.

See our guide on how to negotiate the right deal with suppliers. Getting the right supplier for your business Know your needs Make sure you know what you need. Don't be tempted by sales pitches that don't match your requirements. Understand the difference to your business between a strategic supplier, who provides goods or services that are essential to your business - such as high-value raw materials - and non-strategic suppliers who provide low-value supplies such as office stationery.

You will need to spend much more time selecting and managing the former group than the latter. Spend time on research Choosing the right suppliers is essential for your business. Don't try to save time by buying from the first supplier you find that may be suitable. Ask around People or other businesses with first-hand experience of suppliers can give you useful advice.

Selecting A Vendor – Your Vendor Selection Criteria

Credit check potential suppliers It's always worth making sure your supplier has sufficiently strong cash flow to deliver what you want, when you need it. A credit check will also help reassure you that they won't go out of business when you need them most. Price isn't everything Other factors are equally important when choosing a supplier - reliability and speed, for example.

If you buy cheaply but persistently let down your customers as a result, they'll start to look elsewhere. Agree on service levels before you start It's a good idea to agree on service levels before you start trading so you know what to expect from your supplier - and they know what to expect from you.

Supplier selection process

See our guide on how to manage your suppliers. Don't buy from too many suppliers It will be easier for you to manage - and probably more cost-effective - if you limit the number of sources you buy from. This is particularly the case with low value-added suppliers. All other vendors are judged against the best vendor and given a relative score.

It is OK to have tied scores and even zero scores. Once all have been scored, then the score is multiplied times the weight that was given to that criteria. So the winning vendor in redundancy would receive a weighted score of 10 X 10 or points.

Another vendor given a score of 6 would receive 6 X 10 or 60 points. This process is repeated for each criteria item until all have been scored. The weighted scores are added to obtain the final score for each vendor.

The one with the most points is the winner and generally represents the best-balanced choice for the organization.

how you meet the selection criteria for vendors

For more information about the application of this process, please refer to The New Rational Manager by Kepner and Tregoe. I have personally used this process in hundreds of client projects over the years and have found it capable of bringing a diverse and contentious committee to consensus. It results in a decision that can be defended, even in the most politically-charged environments. Sample Selection Criteria Note: Failure to meet any one of the requirements will eliminate a vendor from competition regardless of all other considerations.