Vendor Assessment and Selection Process Template

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					This is a template that provides businesses with information about how to properly
select a vendor for a project. Vendor selection is a vital process where a company
should select a proficient and punctual vendor that will not cause a delay in project
deliverables. This template includes information regarding process inputs, engaging
sourcing specialists, and details of the sourcing process. This template should be used
by small businesses or other entities that want information about the procedure behind
vendor selection.
Vendor Assessment and Selection Process
Project Title

What is the Vendor Assessment and Selection Process?
     The Vendor Assessment and Selection Process outlines the key functions necessary to
     select vendors for externally sourced functions.

     This document outlines the steps leading up to the engagement of Supply Chain
     Management, as well as the high-level steps that are part of the sourcing process.

     This document was written as a guide to assist in the assessment and selection of
     vendors using Supply Chain Management.
                                                                                                                                Project Title
                                                                                           Vendor Assessment and Selection Process


Table of Contents

I. Process Inputs and Engaging Sourcing Specialists ............................................................................ 4
II. Sourcing Process .................................................................................................................................... 4


 Revision History
         No.              Date                        By                                                 Reason




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I. Process Inputs and Engaging Sourcing Specialists
The following deliverables provide foundational information to the vendor sourcing process:

   Voice of the Customer
   Project Charter
   Initial Business Case
   Critical To Quality (CTQ) requirements
   Business Requirements


The role of the sourcing specialist is to lead project teams through the process of assessing and selecting
vendors, as well as negotiating contracts, assigning supplier relationship managers, and establishing
Service Level Agreements.



II. Sourcing Process

The sourcing process begins when a project manager, LOB representative, or relationship manager
identifies a potential need for an external product or service provider.




Description of process flow

    1. Need identified: A business need is identified through the Voice of the Customer and Project
       Charter.

    2. Review Project Scope – business scope is determined in the Project Charter
    3. Projected spending decision point – an initial business case will determine the budget available
       for the project. SCM finance may need to be engaged to refine the initial business case before
       the supplier selection processes begin.

    4. “Supplier has been selected” decision point – if an existing vendor supplier can meet the LOB
       requirements, then the sourcing specialist will help drive the contract development or negotiation
       process in conjunction with business partners from Legal, Compliance, and Audit.

    5. If no existing vendor supplier can meet requirements, the sourcing specialist will drive the
       Supplier Selection Process. The supplier selection process begins with an assessment of the
       CTQ elements and a search for potential suppliers. During this time, the project team should be
       developing detailed business requirements, functional requirements, and technical requirements.
       These requirements will be used as input to the RFI/RFP/RFQ process (if used). The sourcing
       specialist will also assist project teams in creating evaluation criteria using prioritized
       business/functional/technical requirements.

    6. Once a supplier has been selected, the sourcing specialist will help drive the contract
       development or negotiation process in conjunction with business partners from Legal,
       Compliance, and Audit. Project teams may assist in developing detailed Service Level
       Agreements with the supplier.

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    7. Once contracts are finalized, the sourcing specialist will work with other business partners to file
       the contract and establish a vendor relationship manager (from within SCM).




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DOCUMENT INFO
Description: This is a template that provides businesses with information about how to properly select a vendor for a project. Vendor selection is a vital process where a company should select a proficient and punctual vendor that will not cause a delay in project deliverables. This template includes information regarding process inputs, engaging sourcing specialists, and details of the sourcing process. This template should be used by small businesses or other entities that want information about the procedure behind vendor selection.