Vendor Selection Tips For Small- to Mid-Sized Businesses Adds Experts Resources
Saturday, October 14, 2006
As small- to mid-sized businesses grow, so does their need to find qualified, reputable vendors for everything from call center services, to commercial printing, to search engine optimization, to website design. How can companies maximize their chances of finding the professional, service oriented business-to-business vendors that are best suited to their particular needs? The tips that follow can help.
1. Define the scope of work. What specific services do you need? What are your expectations for the vendor? When will work begin? When must work be completed? What are your budget parameters? Give your vendor prospects all the information they will need to provide you with informed and comprehensive estimates.
2. Are there specific vendor requirements for performing this work? For example, is the work limited to, or best performed by, vendors within a specific geographic area? Are you seeking RFPs or estimates from minority-owned and/or unionized businesses? Are vendors required to demonstrate adherence to international and/or industry-specific business or quality standards? Qualifying your vendor search at the front end can shorten your search time.
3. Explore the competition. It’s easy to use the same vendors you (or your company) have always used, but how do you know you’re getting the most bang for your buck? Research the range of vendors who provide the services you need, and make a point to seek out impartial sources who don’t have a stake in the outcome of your vendor selection process. Remember, the greater the competition, the better your chances of finding a competitively priced vendor who wants your work and will work hard to meet your objectives.
4. Tell your vendor prospects exactly what you want their estimates to outline. Depending on the project, for example, you may wish them to define timeframe for work to be completed, person or people who will conduct the work, specific elements/aspects/units of work to be performed, and, of course, cost for work outlined in the estimate. Your goal is to come away estimates that can be easily compared as you narrow your vendor search.
5. Ask for, and compare, estimates from at least three vendors. Don’t stop your search with just one estimate in hand; you’ll never know what you’re potentially missing, in terms of value and/or quality of work! Estimates can vary widely; the more quotes you have the better your chance of selecting the best vendor for the job.
6. How quickly do vendor prospects respond to estimate requests? Vendors that want your work will work for it by acting in a professional manner and will reply promptly to inquiries.
7. Ask your top vendor prospects for references, and follow through by calling them. Ask they were happy with the quality of work performed and the service they received. Was the work completed on time, and within budget? Would they use the vendor again? Don’t ignore potential red flags.
8. How “legitimate” is the vendor? Competitive estimates and good references don’t always provide a complete picture. How long has the vendor been in business? Has it been cited by the Better Business Bureau or other watchdog agencies? What’s the vendor’s credit rating? Your goal is to avoid untrustworthy vendors who may be inclined to take your company’s money and run.
Finding qualified vendors can be time consuming, but the consequences of conducting a hasty vendor search can be severe. For better (or worse) vendors you select have an impact on your company’s success. In today’s fast-paced business arena, time is an increasingly rare commodity, yet companies cannot afford to leave vendor selection to chance. Prudent business decision makers streamline their vendor searches by using VendorSeek.com, America’s B2B online marketplace, to access to the most extensive network of pre-qualified business service providers in the U.S.
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About the Author:
Ken Wisnefski is founder and Vice President of Operations for VendorSeek.com, the online marketplace leader, connecting thousands of businesses with qualified, professional and competitive business-to-business vendors each week. At its online hub, VendorSeek.com connects businesses of every size and scope with more than 3,000 pre-qualified vendors with expertise in as many as 150 categories. Every month, VendorSeek.com processes more than 5,000 requests from businesses who recognize its value as an impartial resource for reputable, professional and expert service providers.
1. Define the scope of work. What specific services do you need? What are your expectations for the vendor? When will work begin? When must work be completed? What are your budget parameters? Give your vendor prospects all the information they will need to provide you with informed and comprehensive estimates.
2. Are there specific vendor requirements for performing this work? For example, is the work limited to, or best performed by, vendors within a specific geographic area? Are you seeking RFPs or estimates from minority-owned and/or unionized businesses? Are vendors required to demonstrate adherence to international and/or industry-specific business or quality standards? Qualifying your vendor search at the front end can shorten your search time.
3. Explore the competition. It’s easy to use the same vendors you (or your company) have always used, but how do you know you’re getting the most bang for your buck? Research the range of vendors who provide the services you need, and make a point to seek out impartial sources who don’t have a stake in the outcome of your vendor selection process. Remember, the greater the competition, the better your chances of finding a competitively priced vendor who wants your work and will work hard to meet your objectives.
4. Tell your vendor prospects exactly what you want their estimates to outline. Depending on the project, for example, you may wish them to define timeframe for work to be completed, person or people who will conduct the work, specific elements/aspects/units of work to be performed, and, of course, cost for work outlined in the estimate. Your goal is to come away estimates that can be easily compared as you narrow your vendor search.
5. Ask for, and compare, estimates from at least three vendors. Don’t stop your search with just one estimate in hand; you’ll never know what you’re potentially missing, in terms of value and/or quality of work! Estimates can vary widely; the more quotes you have the better your chance of selecting the best vendor for the job.
6. How quickly do vendor prospects respond to estimate requests? Vendors that want your work will work for it by acting in a professional manner and will reply promptly to inquiries.
7. Ask your top vendor prospects for references, and follow through by calling them. Ask they were happy with the quality of work performed and the service they received. Was the work completed on time, and within budget? Would they use the vendor again? Don’t ignore potential red flags.
8. How “legitimate” is the vendor? Competitive estimates and good references don’t always provide a complete picture. How long has the vendor been in business? Has it been cited by the Better Business Bureau or other watchdog agencies? What’s the vendor’s credit rating? Your goal is to avoid untrustworthy vendors who may be inclined to take your company’s money and run.
Finding qualified vendors can be time consuming, but the consequences of conducting a hasty vendor search can be severe. For better (or worse) vendors you select have an impact on your company’s success. In today’s fast-paced business arena, time is an increasingly rare commodity, yet companies cannot afford to leave vendor selection to chance. Prudent business decision makers streamline their vendor searches by using VendorSeek.com, America’s B2B online marketplace, to access to the most extensive network of pre-qualified business service providers in the U.S.
* * *
About the Author:
Ken Wisnefski is founder and Vice President of Operations for VendorSeek.com, the online marketplace leader, connecting thousands of businesses with qualified, professional and competitive business-to-business vendors each week. At its online hub, VendorSeek.com connects businesses of every size and scope with more than 3,000 pre-qualified vendors with expertise in as many as 150 categories. Every month, VendorSeek.com processes more than 5,000 requests from businesses who recognize its value as an impartial resource for reputable, professional and expert service providers.
