Vendor Selection Criteria – 08 Critical Things to Consider

Every successful organization and business understands the importance of investing & outsourcing. However, spending money isn’t always an easy decision that all business owners can make. As a result, you may have to hold off on making that vital business investment for quite some time, which could potentially damage your own company in the long run. 2025 is just around the corner, and it might be the time to upgrade apps, redesign your website, replace the carpet in your office, or find yourself a new Tech Partner that could take your business to a new level. Let dive in to our lastest article about vendor selection criteria.

If you are still wondering how to choose the perfect partner, then worry not because Savvycom is here to help. As we go over all the most critical Vendor Selection Criteria to answer your burning question: Who should I hire for the job?

What Is A Vendor Selection Criteria? Why?

To keep this short and precise, vendor selection criteria is an evaluation and approval process that businesses often use to determine if prospective vendors and suppliers can meet their organizational standards and obligations once under contract. The goal is to secure a low-risk, best-in-class vendor and supplier portfolio.

Manufacturers’ production schedules will be pushed back if a vendor fails to deliver on time or produces low-quality goods. Due to stockouts, eCommerce and retail stores will lose sales. Customer deliveries will be delayed, items may be returned, and your company’s reputation with customers will suffer.

At Savvycom, we are always on the case of evolving our services. The development team has regular technological updates that revolve around technology stack, languages, frameworks, etc., which minimizes loss and gains for our clients. As one of most prestigious and trusted tech partners software development companies in Vietnam, we pride ourselves in providing our clients with only the best in IT Outsourcing services & Tech Solutions.

Vendor Selection Criteria: 8 Keys To Consider

1. Price

It doesn’t really matter what you are doing; whether it is about hiring a professional or outsourcing, your end goal should always be to get the maximum value for the lowest possible cost, or at least it should be a cost accepted by both you and the vendor. When considering vendor selection criteria, price is always an essential factor, but remember that the lowest bid isn’t always the best choice. You should seek the best balance between cost and value.

As the business owner, you should be wary of vendors who submit estimates far lower than others most of the time. You may receive less than good products or services. Or, you may end up paying more than the estimated cost in fees that weren’t part of the quote.

Communicating is also key to prospects, ensuring that the vendor understands your full requirements and can provide an accurate bid. This helps you stay aligned with your original vendor selection criteria goals and avoid unnecessary spending.

At Savvycom, our team highly values transparency, providing clients with detailed estimations for each scope of work to avoid miscommunication. If you are looking for an ideal Tech Partner, why not give us a go? It’s always free to send us an email or give us a call.

2. Quality of Product or Service

The price tag doesn’t really matter if the product or service is of poor quality. A critical aspect of your vendor selection criteria should include assessing the quality of previous work. Ask for samples, and check out other projects they’ve completed to ensure their work meets your expectations.

For instance, if you hire a company to build a new website or mobile app, take a close look at their past work to see if it aligns with your quality standards. Vendors should also emphasize employee training, as untrained workers can lead to subpar results.

3. Flexibility & Delivery Time

Flexibility and delivery time are crucial parts of any vendor selection criteria. Your vendor should be able to accommodate changes without penalizing you heavily. Additionally, having a clear timeline for project delivery is essential. If the vendor cannot offer a reliable timeline or doesn’t provide a dedicated project manager, you may want to explore other options.

4. Trustworthiness

Trust is fundamental when selecting a vendor, making it an important part of your vendor selection criteria. Be sure to ask for references and check them thoroughly. If a vendor hesitates to provide references, consider this a red flag.

When reviewing references, ask key questions like:

• Was the vendor punctual for appointments?
• Did they handle problems efficiently?
• How would you rate the quality of their services?

At Savvycom, we pride ourselves on building transparent relationships with our clients. If you’ve reached this stage, feel free to ask us anything!

5. Customer Service

Companies with a reputation will likely take good care of you before, during, and after the contract end. As mentioned above, references are invaluable. Be on the lookout to request vendor referrals from people whose opinions you trust.

But keep in mind that we are living in a digital age. Companies and businesses with poor customer experiences may receive their frustrations online, and a simple Internet search can uncover this kind of feedback.

Do a Google search “[vendor name] reviews”. You may be surprised at what you find – both good and bad!

6. Employees’ Skill Level

Think of it this way, a vendor represents your organization, and their employees do the same thing. However, this is perhaps the most challenging factor to check since each person is different, and you don’t have a long time to evaluate that specific person you hired. The interest in technical skills is always a must, but people skills cannot be overlooked. In this case, be sure to have a detailed list of questions beforehand and interview the person before deciding you should hire them later on.

7. Leadership Profile

A ship that set sail can only pass through the storm under the guidance of an excellent and strong-willed captain. Seriously, try imagining Facebook without Mark Zuckerberg, Microsoft without Bill Gates, or Tesla without Elon Musk. Other than looking at and evaluating a vendor’s crewmate, you should take into account their captain as well. And here at Savvycom, we have always been proud to have a talented leader alongside us for over a decade. Vietnam’s most influential Woman in Stem – Ms Van Dang (Savvycom CEO & Founder, Cherie Blair Foundation for Women’s Mentor and Asia Society-Victoria Distinguished Fellow)

8. Recommendations from Others

Word of mouth is always a great way to find a vendor if everything else is equal. Keep in mind that you can always ask the people in your circle of trust, your LinkedIn connections, the members of your professional organizations, and the people you attend business conferences with who they use in similar situations. People will share honest opinions and often answer your need based on a similar experience.