Vendor Selection

The vendor selection procedure is potentially the most important and lengthy aspect of a prosperous RFP (request for proposals).

Main goal of conducting RFPs : the purpose of conducting an RFP is to select the most appropriate vendor.
It is likely that to the moment, you will be ready to assess proposals, a huge amount of time and energy will have already been invested in the procedure. So its success is solely dependent on your choice. That is why it is so important to be convinced that everything is done right. Let us consider the vendor selection process in this article. You will be presented with:

• A step-by-step guide on choosing a vendor;
• A series of tips on establishing an appropriate environment and scorecard;
• Up-to-date methods and strategies.

Applying your skills, you will find the perfect candidate, a true professional.

Describing the phases of selecting a vendor

The one of the final steps in any strategic sourcing process is vendor selection. Of course, it takes a lot of time, but the selection process of vendor is really worth it. For a productive sourcing process, you have to reduce the chance that bias or some kind of flawed solution might affect the outcomes. The following sourcing procedures will give you a clearer and more databased approach:

Prepare your manuals for use.

• First review the source documentation, and then proceed with the scorecard. Ideally, much of the required supplier selection work has been done previously.
• Documentation of the initial aims and purposes of the RFP should be assembled.
• Perhaps the offers you have received will need to be evaluated. Therefore, it may be useful to be in touch with more than one evaluator in this case..
• The requirement identification documents should describe the problem to be solved, the objectives and project details proposed, and should contain a summary of the claims and requirements of all the interest groups. Thus, it helps to focus on the demands rather than the desires.
• Once you have published an RFP or used the provider information to compile a preliminary list before posting the RFP, it is important to prepare relevant information for reference, for example, it can be useful to cross-check the RFP results against the official offers you have received. In this way, it will help you to make a final choice of the most suitable vendor.
• When preparing the vendor selection scorecard, you should follow the requirements as accurately as possible.

Develop a system for evaluating vendors.

• To simplify the process of scoring for your expert group, set up a vendor scoring system based on your requirements for vendors; set up scores per item. The use of scores is recommended as a way of prioritizing those items that are essential for your business.
• Most purchasing managers choose a special Excel worksheet to evaluate vendors. It works, but has some disadvantages because the vendor selection evaluation spreadsheets created in Excel frequently have issues with release management and make it difficult to summarize results.
• You can download a template for setting up a vendor scoring system. RFP software, in turn, proposes an automatized way to create a vendor selection scorecard.
• A significant part of the scoring procedure is carried out using complex formulas in an Excel table, but using RFP, you can automate this process. The RFP software truly brings out its best qualities here..

Evaluate the offers

Recommendations for action in the vendor selection process

You should do the following steps before compiling your RFP:

• Try to troubleshoot any issues related to both service and technical aspects prior to proceeding with the choice of a new vendor.
  It is often easier to solve problems with a current vendor than to find a replacement one.
• Clearly define precisely what is required for your decision.
  It will allow you to prioritize your decision and rapidly eliminate vendors who do not meet your requirements. We recommend holding a meeting with HR, IT and managers and asking all partners to voice their wishes.
• Before you start the sourcing process, set a budget.
  It is especially important to agree the budget (and total plan) with the senior manager before the procedure starts. Vendor rates can vary, so do not go too far, lest you suddenly find out that the vendor is over budget.
• Identify a project officer or supervisor.
  It is a crucial step in case problems arise or to allocate responsibilities. Identifying relevant parties and the steering committee in advance is essential to the successful outcome of the project.
• Define the determining factors in the selection - which are the most significant for you?
  The main factors that will ultimately influence your final decision to proceed with the deal may be in the following areas: Pricing pattern, particular features or functions (integration, automatization and report tools), client background, credibility of the vendor, etc.
• Allocate time period to analyse vendors.
  The number of "HR technology" vendors on the market is enormous. Spend time researching the features and service suggestions of each vendor. Moreover, pay attention to things that clients actually say about the offers or services they provide.

While drafting and publishing the RFP:

Specify and clarify your RFP. Whether you are looking for the most advantageous offers, an RFP containing reference data and particular requirements will help you do so. Vendors will only provide you with the suitable options for price and activity if they understand precisely what you are searching for and what your company is engaged in.
See for yourself to ask the correct question in your request for proposal. Formulate the questions in advance that will assist in understanding whether the vendor matches your requirements and those key decision-making factors mentioned previously.
Ensure connection with the main parties and the project team. There should be ongoing communication with everyone involved in the project. Include the IT department in this conversation as well. Executives do not like surprises, so it is valuable for them to be informed about the project's status.
When concluding a contract, ask the vendor for better and total prices and agreements on the level of service provided. It is always good to ask, isn't it?