Vendor vetting is a process that allows businesses to verify the qualifications, capabilities, and trustworthiness of their potential suppliers. The process starts with researching the supplier’s background and financial situation to ensure that they’re able to provide the services and products that you need. It’s also important to obtain references from other customers and to check with industry associations to make sure that the supplier has a good reputation. Additionally, businesses should conduct an on-site inspection to ensure that the supplier meets their standards for quality and safety. Finally, it’s important to establish a contract that clearly outlines the terms of the agreement.
Here are some tips to help you:
Define what you need from a supplier – Make your expectations clear on what you expect from the supplier.
Check for references – Don’t be afraid to ask to speak to one of the suppliers current clients and find out how they find working with the supplier.
Find out how the supplier can add value to your business– Establish how working with this supplier can add value to your business. For example are they able to offer you a competitively priced service?
Assess your suppliers’ efficacy – Make a judgment on whether your supplier can meet your needs for the short term and the long term.
Get a clear idea of the cost – Discuss the costs involved with your supplier. You need to make sure that they are being transparent with all of their costings.
One of the greatest unknowns for any company in today\’s times is the financial well being of their vendor. Most companies assume that their vendor companies have remained financially stable but in the current time of our economy many circumstances have changed for many vendors and typically this is only discovered when the vendor fails to perform.