Now that you have agreement on the business and vendor requirements, the team now must start to search for possible vendors that will be able to deliver the material, product or service. The larger the scope of the vendor selection process the more vendors you should put on the table. Of course, not all vendors will meet your minimum requirements and the team will have to decide which vendors you will seek more information from. Next, write a Request for Information (RFI) and send it to the selected vendors.
1. Compile a List of Possible Vendors 2. Select Vendors to Request More Information From
3. Write a Request for Information (RFI)
4. Evaluate Responses and Create a "Short List" of Vendors
The main objective of this phase is to minimize human emotion and political positioning in order to arrive at a decision that is in the best interest of the company. Cassini Renewables Pvt Ltd will be thorough in investigation and seek input from all stakeholders and use the following methodology to lead the team to a unified vendor selection decision:
• Preliminary Review of All Vendor Proposals
• Record Business Requirements and Vendor Requirements
• Assign Importance Value for Each Requirement
• Assign a Performance Value for Each Requirement
• Calculate a Total Performance Score
• Select the Winning Vendor
The final stage in the vendor selection process is developing a contract negotiation strategy. Remember, you want to "partner" with your vendor and not "take them to the cleaners." Review your objectives for your contract negotiation and plan for the negotiations be covering the following items:
1. List Rank Your Priorities Along with Alternatives
2. Know the Difference Between What You Need and What You Want 8 3. Know Your Bottom Line So You Know When to Walk Away
4. Define Any Time Constraints and Benchmarks
5. Assess Potential Liabilities and Risks
6. Confidentiality, non-compete, dispute resolution, changes in requirements
7. Do the Same for Your Vendor (i.e. Walk a Mile in Their Shoes)