How to select a good vendor for your business

You have the power to select the vendor that best suits your needs. You don’t have to accept anything less than the best equipment, service and support. Have a look at the following features you should look for in a vendor that will assure you that your needs will come first.

(1) Understanding of your overall business strategy
For a vendor to understand your overall business strategy, you have to have one. “Don’t buy something that is cheaper today. Having a consistent strategy is always a good idea. It’s usually a better idea to work with a vendor who already knows - and may even have set up - the existing network. Who already understands the department’s overall goals and strategies.

(2) Self-sufficient with resources
Don’t buy services from someone who is dependent on one or other person to get a job done.

(3) Employees are good, stable and aren’t too stressed
You want to be sure the vendor’s employees are good and skilled. Many vendors hire good people but set unrealistically high targets for them to reach. This can lead to constant employee turnover rates - something else to watch for, and avoid, in prospective vendors.

(4) Problem-solving skills
Determining how well a vendor will solve problems in your company isn’t easy. After all, any vendor will tell you it has excellent problem-solving skills.

“What are some problems you’ve seen in similar projects in the past?”
“How did you deal with those problems?”
“Did you finish that project on time?”
“Did you finish that project on budget?”

(5) Staying power
Vendors who’ve been around a few years and are stable.

(6) Adaptability
In a vendor, this means being able to adjust to the changing environment in which the project operates.

(7) A good match
Make sure to match the vendor, not just to the company, but also to the project.

(8) Check support agreements
One way to narrow down the vendors is to deal only with those who have acceptable support policies. e.g. 7x24 service

(9) Know your upgrade options
The forward-thinking IT manager will have an understanding and relationship only with vendors who also are looking ahead and will be ready to upgrade systems as soon as the department is ready.

(10) Keep it simple
Look for vendors who offer scalable solutions for all problems.

What is the importance of analysing the financial stability of the vendor?

Financial stability means more in the technology sector than ever before. You want to be sure you’re dealing with a vendor who can continue to support you for years ahead. Consider the history and stability of your prospective vendor by asking these questions:

Who runs the company?

Is the shape and direction of your vendor company determined by anonymous investor, or is it run by a small group of partners who built the company from the ground up? A company that has a cohesive direction and a deep commitment to the network monitoring industry will be there for you year after year.

What are the design and manufacturing capabilities of the company?

Who’s really making the equipment you buy? Is your vendor merely a design house that outsources the actual manufacture? If so, how can the vendor guarantee quality? A company that has complete engineering and manufacturing facilities is much better equipped to create a perfect-fit solution for your monitoring needs.

Does the vendor overcome your objections by slashing prices?

Being too willing to offer a bargain is a warning sign that a vendor can’t meet all your needs.

What is the need to check references while selecting vendor?

Checking references is a crucial step in the vendor selection process. Similar to a reference check for job candidates, this procedure requires that you talk directly to independent parties who have previous experience with the company. Any vendor that overstates his accomplishments or makes exaggerated claims will quickly be revealed through a few short calls to previous clients.

When you call to check a reference, explain that you are considering working with Company X and would like to ask a few questions. You should start with general questions first, then probe for more detailed information. Questions can include:

Can you tell me about the project they completed for you?
What time-frame was the project completed in?
Was the project completed on time?
How responsive was the company to making changes and revisions?
Was the project completed within the original budget or did the vendor ask for more money?
What could the vendor have done better?
Who was the project manager on the project?
Would you work with the company again in future?

How to use a Vendor Score Card?

If you have narrowed the possible vendors to one that is the most qualified and customer service oriented, you need only confirm standard contract details and your search is complete. However, you may find that there are a few vendors who all seem capable. In these cases a simple score card can be used to award each vendor points in various categories that you deem important. Figure below provides a sample score card with a scale of 35 total possible points.

Quality of work (10 possible points)
company has received awards, honours, published articles
samples, demos, and prototypes show high quality
has worked on similar projects

Customer service (10 points)
positive feedback was provided by five references
exhibited friendly, prompt service through proposal process
showed flexibility of project manager

Confidence in company (5 points)
firm has been in business several years
is financially strong and growing
has depth of talent and experience in staff

Price (5 points)
competitive and reasonable fixed budget
estimate for expenses
good track record of completing project on time, on budget

Quality of proposal (5 points)
reflected research into client company and detailed solution, not a canned proposal
attractive layout and presentation
submitted on time
followed all RFP directions and answered all questions

Vinod Kuriakose

(The writer Vinod Kuriakose can be contacted at feedback2vinod@yahoo.co.uk)