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How do you select and onboard new vendors?

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Vendor management is a key skill for any business that relies on external partners to deliver products, services, or solutions. However, finding and hiring the right vendors can be a challenging and time-consuming process. How do you select and onboard new vendors that meet your expectations, align with your goals, and add value to your business?

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1 Define your needs

Before you start looking for potential vendors, you need to have a clear idea of what you need from them. This includes defining your scope, budget, timeline, quality standards, and performance indicators. You also need to identify your risks, assumptions, and dependencies, and how you will manage them. Having a well-defined project or service specification will help you narrow down your options and communicate your requirements to the vendors.

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John Bredesen

★Author ★IT Executive ★Consultant ★Speaker ???Books: The I.T. Leaders' Handbook, The I.T. Leader's First Days
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While a bit of an oversimplification, you will need transactional and strategic vendors. Transactional can be changed easy based solely on price and delivery. Strategic ones (frequently consultants/contractors and major software vendors) take more work to get right. Rick assessments are different for each. Another factor is to be in the sweet spot for the vendor. Most vendors are good at their core offering, and not so good at things around the edges. Stay away from the edges.

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2 Research and evaluate vendors

Once you have your needs defined, you can start researching and evaluating vendors that offer the products, services, or solutions you are looking for. You can use various sources of information, such as online reviews, referrals, industry associations, or trade shows, to find and compare vendors. You should also check their credentials, reputation, experience, and capabilities, and ask for references or samples of their work. You can use a vendor evaluation matrix or scorecard to rank and shortlist the vendors based on your criteria.

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John Bredesen

★Author ★IT Executive ★Consultant ★Speaker ???Books: The I.T. Leaders' Handbook, The I.T. Leader's First Days
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If you do a major investigation with lots of internet searches, long list, short list, interviews, scorecard, references, blah blah blah, for every single vendor, you will never get anything else done. Spend the time on your strategic vendors and do a risk assessment on picking a bad vendor. There is often more than one vendor that you can be successful with.

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3 Negotiate and finalize contracts

After you have shortlisted your preferred vendors, you need to negotiate and finalize the contracts with them. This involves discussing and agreeing on the terms and conditions, such as the scope, deliverables, payment, timeline, quality, warranties, and liabilities. You should also establish the roles and responsibilities of both parties, the communication and reporting protocols, the escalation and resolution procedures, and the change and termination clauses. You should review and sign the contracts carefully, and ensure that they are legally binding and compliant with your policies and regulations.

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4 Onboard and integrate vendors

The final step in selecting and onboarding new vendors is to onboard and integrate them into your business processes and systems. This involves providing them with the necessary information, resources, and support to start working on the project or service. You should also introduce them to your team and stakeholders, and clarify their expectations and feedback mechanisms. You should also monitor and evaluate their performance regularly, and provide them with constructive feedback and recognition. Onboarding and integrating vendors is an ongoing process that requires constant communication and collaboration.

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5 Manage and optimize vendor relationships

Selecting and onboarding new vendors is not a one-time event, but a continuous process of managing and optimizing vendor relationships. This means that you need to maintain regular contact with your vendors, and ensure that they are meeting your expectations and delivering value to your business. You should also review and update the contracts as needed, and address any issues or challenges promptly and effectively. You should also seek opportunities to improve and innovate with your vendors, and leverage their expertise and insights to achieve your goals.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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John Bredesen

★Author ★IT Executive ★Consultant ★Speaker ???Books: The I.T. Leaders' Handbook, The I.T. Leader's First Days
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I always tried to have a win-win relationship with my strategic vendors. If you understand how they are successful and work to support them where you can they are often more willing to help you out when you get into a jam. Remember that vendors know how to fire customers.

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How do you select and onboard new vendors?

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2

3

4

5

6

1 Define your needs

2 Research and evaluate vendors

3 Negotiate and finalize contracts

4 Onboard and integrate vendors

5 Manage and optimize vendor relationships

6 Here’s what else to consider

Vendor Management

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How do you select and onboard new vendors?

1

2

3

4

5

6

1 Define your needs

2 Research and evaluate vendors

3 Negotiate and finalize contracts

4 Onboard and integrate vendors

5 Manage and optimize vendor relationships

6 Here’s what else to consider

Vendor Management

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