You're faced with multiple vendor options for contingency plans. How do you choose the right ones to include?

For me the most important is truly understanding what our needs are going to be Begin by conducting a comprehensive assessment of our business's critical services and products that sustain day-to-day operations. This analysis will provide us clarity on the essential requirements from vendors during periods of crisis or technical setbacks. For instance, businesses heavily dependent on IT systems should prioritize vendors with expertise in rapid response IT support. Anticipate worst-case scenarios and strategize by identifying vendors capable of providing solutions aligned with these tasks. By proactively line up vendor capabilities with potential crises, we can enhance resilience and minimize operational disruptions effectively.

It involves a systematic evaluation of several key factors. Sharing some steps 1. Define Your Requirements 2. Vendor Evaluation Criteria 3. Risk Assessment 4. Cost and Value Analysis 5. Contract and SLAs 6. References and Reviews 7. Pilot Testing 8. Decision-Making Framework

My experience says while making the decision on vendor onboarding one should keep in mind the following points: 1. your current and future business requirement 2. Vendor experience in the respective field and their reliability 3. Vendor ability to adapt to changes in the business strategies and adhere to strict timelines 4. Vendor financial stability and credit line 5. Vendors availability (Resources and assets) in the country/region 6. MSME registration - has a huge affect on working capitals Cost can be negotiated basis the volume of work you are able to provide to a vendor partner. However above points are the key factors in deciding the right vendors for your business.

A proper pre qualification exercise needs to be carried out and vendors identified and categorised based on set criteria. The criteria doesn't only includes past experience. They are many more points to be considered.

Scope defnition: Understand overall scope of work and also the possible support available within the company. This will help set expectations from vendors. RFP: Conduct RFP with multiple vendors and analyze their thought process to the solutioning approach. This always helps to understand if the mindset is fitting to needs and is a key parameter in vendor selection. Cultural Compatibility: Another key aspect to consider for vendor. Usually it is better to engage a culturally diverse company. Cost effectiveness: At the end of day, this always plays a role but there are some vendors who lowers the price to win RFP which usually backfires later. Flexibility: Depends on project, but scalability is a key factor to look for in a vendor.

Before finalization of vendor one should keep in mind that whether the agency has the prior exposure for handling such crisis or not. If not, then to avoid giving such responsibility. Capabilities of vendors also varies from region to region sometimes. It depends upon who is managing it in the region. We have observed that the same agency may not perform the way it is performing in some different region. Conducting surveys & taking inputs from the industrial peers will also help to choose the best.

Selecting the suitable vendors for contingency plans requires a thorough evaluation of several important factors. Begin by assessing their trustworthiness, monetary stability, and historical performance to regulate their capability to deliver consistently under challenging circumstances. It's vital to inspect each vendor's history of meeting quality standards and adhering to delivery timelines, which are critical for maintaining operational continuity during disasters. Additionally, we have to consider their geographic location to mitigate logistical risks and potential disruptions, ensuring they can provide seamless support to our business across different scenarios. We have to review their disaster recovery plans also.

It is important that everything spoken is backed up in writing and forms part of a contract. References from past and present clients helps towards making a decision but regular dealings and seeing examples of how they work gives a better insight as to how the company will perform.

Also take into account the history of the team members that make up the vendor; their background; and their ability to support you in the design of the critical service as well. You don’t want a vendor that only helps you in case of a crisis. You want a partner that helps you prevent it.

Choosing the right vendors for contingency plans involves evaluating key criteria such as reliability, financial stability, and past performance. Analyze each vendor's ability to meet quality standards and delivery timelines consistently. Consider the geographic location to mitigate risks related to logistics and disruptions. Review their disaster recovery plans and capacity for scalability. Assess the cost-effectiveness and overall value they offer. Engage in trial runs or pilot programs to test their responsiveness and flexibility. Prioritize vendors with strong communication practices and proven track records in handling emergencies, ensuring they align with your strategic objectives and risk management goals.

The ability of vendors to respond quickly to emergencies and their flexibility in pivoting as needed are key considerations. Time sensitivity in contingency scenarios makes it essential to partner with vendors that can act swiftly and effectively. This may involve having a diversified supply chain, the capability to scale operations rapidly, or the implementation of flexible systems that enable quick adaptation to changing circumstances. Vendors with these attributes are invaluable assets in ensuring business continuity and resilience during challenging times.

One of the most critical risks is their cyber security preparedness and plans. Not simply theirs but that of their vendors (I.e. cyber risk from 2nd tier vendors). This is often a critical risk and often lack of controls may put you at risk. The other risk to consider is where you fit in size and importance in their list of clients. This is important to assess availability of their resources for issue resolution and quick turnaround time amongst other concerns.

Evaluate vendors who actively invest in technology that enables collaborative crisis management. Those leveraging AI, blockchain for transparency/ IoT can offer real-time updates, decentralized decision-making, & enhanced security. Vendors who have made strides in cutting-edge tech are likely to respond faster, provide transparency, & engage seamlessly when traditional communication channels might be disrupted. The ability to retool their processes, pivot quickly, & offer versatile solutions in dynamic situations. A vendor who adapted to multiple supply chain challenges during the pandemic may prove more adaptable than a vendor who was merely reliable. In a crisis, these agile vendors can introduce creative solutions & pivot in real-time.

Choosing the right partner in sync with the strategy spanning across Q's & entire fiscal is a mix of various elements one have to take into consideration. Right from the history of the partner , market analysis through word of mouth & your N/ w arena , evaluation in terms of right fitment, objectified eye to analyse the synergy with defined ROI's , proactiveness , Understanding the partner's/vendor cultural fit too which should align with your organization , constant engagement with the relevant stakeholders , market price matrix SWOT & most important seamless cascading of the communication of your end goals for which you are zero downing a vendor / partner .After going through all the process, one key aspect is a #disruptive slice

Assess Vendor Reliability: Track Record: Check the vendor’s history and reputation for reliability and performance. Financial Stability: Ensure the vendor is financially stable to provide long-term support. References and Reviews: Look for reviews and ask for references from other clients.

Consider how well a vendor can integrate with your systems and workflows, both technically and culturally. Vendors with experience as integrated partners are invaluable in high-stakes situations. Evaluate their partnerships with other firms, participation in joint crisis simulations, and teamwork readiness. Those with this experience can function as an extension of your organization when speed and coordination are crucial. Additionally, choose vendors who can enhance core operations during non-crisis periods through continuous improvements, alternative sourcing, and routine monitoring, adding resilience beyond emergencies. Cultivating a diversified vendor ecosystem will help fill gaps and enable collaboration during crises.

There is the architecture assessment perspective which should cover mutiple architecture lenses such as technical,operational,integration,infrastructure,security,data,regulatory and should call out potential risks and mitigations of vendors platform,product or services and should form part of the vendor selection process

Risk assessment is critical to ascertain risk factors of vendor partners. This will help with the following: 1. Risk Mitigation Plan 2. Risk Management Plan 3. Exit and Replacement strategy The first two factors above are self-explanatory. Third one is crucial because ongoing risk assessments will help the enterprise to determine based on renewed risk profile of a vendor to engage in exit and replacement strategy.

Risk Mitigation: Evaluate how the vendor mitigates risks, including their own contingency plans. Geopolitical and Environmental Risks: Consider risks related to the vendor’s location, such as political stability or susceptibility to natural disasters.

It's essential to assess whether the vendor has robust and tested contingency plans in place. This includes evaluating their preparedness to support your business and maintain their own operations during a crisis. Comprehensive risk management strategies should be in place, addressing potential threats to both their business and yours. By ensuring that the vendor's risk management capabilities align with your business's needs, you can enhance the overall resilience of your operations and minimize potential disruptions during challenging times.

What is true of basketball officials is also true of IT vendors…. “There is nothing more expensive than cheap help.” …. Al McGuire, former Head Coach, Marquette University.

Pricing Structure: Understand the pricing model and ensure it fits within your budget. Value for Money: Assess whether the cost is justified by the value and quality of services provided.

Considering the cultural fit between your company and potential vendors is an important aspect of vendor selection. Aligning values, communication styles, and operational philosophies helps ensure a seamless partnership, particularly during stressful times. A vendor that understands and shares your company's priorities and approach to problem-solving is likely to be a more effective partner in contingency situations. This mutual understanding and alignment of cultural aspects can contribute to better collaboration and support when addressing unexpected challenges.

Once all the key areas i.e., Assess Needs, Vendor History, Evaluate Agility, Risk Management and Cost Considerations have been completed, negotiating fit-for-purpose SLAs (Service Level Agreements) will help in the assessment of vendors as a cultural fit for your company. I agree with factors such as values, communication styles and operational philosophies should also align for a successful partnership but if they cannot be measured via SLAs (Service Level Agreements), then it would be difficult to implement them from an operational standpoint. Therefore, vendor's reputational history, credibility and response times during emergency situations will help in proper consideration of the cultural fit between your company and potential vendors.

Ensure the vendor’s technology integrates with your systems and is up-to-date.Look for clear performance metrics, penalties for non-compliance, and remedies.

Identify your needs and specific requirements- including cultural & governance Do a 360 degree evaluation of the vendor if possible, if not definitely get their customers feedback through multiple sources Do have review and payment clauses based on milestones

One of the most important factor to choose the vendor is their "willingness to play long term innings". Second point is they believe and see themselves as Partner not only vendor. Coz they do not execute an assignment only rather carry the brand of the organisation . We have few partners as old as 10-12 year's. Coz they have stood with us during thick and thin. And as an org it becomes our responsibility to ensure " Fairness" to them. Following " L1" policy does not always work.Cost + Quality + Consistency + Attitude should be the criterion of selection of the right one

Good start point is to distribute scope between multiple vendors to avoid overlap and defining the contours of operations. Mapping the right scope with the vendor strengths , like some vendors may be specialised in certain part of the scope . Play to the vendor’s strengths. Ensure there’s the commercial parity between vendors .A Also, the multiple vendors are driven and have positive competition amongst them bettering the overall service delivered.

Start by identifying and evaluating the specific needs of your company in terms of contingency plans, considering factors such as the criticality of systems, data and processes. Conduct exhaustive research on potential suppliers, collecting relevant information about their background, experience, reputation in the market, quality of service and references from previous clients. Make a detailed comparison between different providers based on predefined criteria, such as the suitability of their solutions to your needs, quality of service, reliability, scalability and cost-effectiveness Schedule meetings or interviews with preselected suppliers to discuss your specific requirements in detail, resolve doubts, obtain additional information

I might have a bit different approach on this. As this is for contingency plan, so we need to understand the scenario of this "contingency". Is it a fail safe scenario? Backup strategy where cost is no object? Alternate if current is not performing one? Or cost down strategy? Or even just to put there as symbol and create "competitiveness" for current vendor? By knowing this priority, then we can adjust the type of vendor to be shortlisted. Some vendor might be very cheap, but performance is so-so (but tolerable), some might be very good but extremely expensive.