Vendor Management

How do you pick the right vendor?  There's a multitude of factors.

What is a Vendor?

Vendors are third-party suppliers, contractors, and service providers who distribute goods or services to a business. Once an organization partners with a vendor, the third party becomes part of the business’s supply chain.

Organizations often categorize vendors into one of two groups: critical and non-critical. Critical vendors are third parties who supply goods or services that are essential to an organization’s day-to-day operations and business continuity.

Vendor risk management (VRM) is the process organizations use to identify, assess, and remediate vendor risks across their supply chain. The best way for an organization to strengthen the foundation of its VRM program is by devoting energy to strategic procurement methods and the entire vendor selection process.

What is the Vendor Selection Process?

The Vendor Selection Process (also referred to as the vendor procurement process) is a series of steps organizations use to assess business needs, determine product or service requirements, and source third-party partnerships that fulfill these needs and requirements.

An effective vendor selection process includes identifying new vendors, evaluating vendors using selection criteria, conducting preliminary vendor due diligence, and contract negotiations. During the vendor selection process, most organizations will utilize formal evaluation activities such as requests for information (RFIs), requests for proposals (RFPs), and requests for quotes (RFQs).

https://www.upguard.com/blog/7-tips-vendor-selection