Vendor Selection for Project: A Comprehensive Report and Analysis

This report provides a comprehensive overview of the vendor selection process for projects, essential for business development. It begins by defining procurement and its significance in selecting external vendors, often through bidding processes. The report outlines four key practices: analyzing business requirements to define project needs, conducting vendor searches to identify potential candidates, utilizing Request for Information (RFI), Request for Proposal (RFP), and Request for Quotation (RFQ) to gather information and evaluate vendors, and finally, contract negotiation after evaluating proposals. The report emphasizes the importance of these steps in ensuring effective project vendor selection, providing a structured approach to procurement. References to relevant literature are included to support the analysis.

Running head: SELECTION OF SELLER FOR PROJECT
SELECTION OF SELLER FOR PROJECT
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SELECTION OF SELLER FOR PROJECT
Table of Contents
Procurement: 2
4 practices for selecting a seller for the project: 2
References: 4

SELECTION OF SELLER FOR PROJECT
Procurement:
Procurement is referred to the process which is utilised for the selection of the seller
for a particular project. The process consists of finding the terms for the project and agreeing
on them. The process also includes the obtaining of the materials, services which is obtained
from an external source (Parthiban, Zubar & Katakar, 2013). Obtaining this external source
or the workforce is generally done by the process of tender selection or other bidding
processes.
4 practices for selecting a seller for the project:
The four practices that are needed for the selection of the required vendor for the
project are as follows:
 Analyzing the business requirements:
The prime task for a vendor selection team that needs to be performed in the
beginning of the selection process is noting down the category of the service or
material for the project and for which the vendor is being searched (Finnerty, 2017).
This defining process also includes the defining of the technical, business
requirements, vendor requirements and releasing the documents in the targeted area
for get5ting the input.
 Vendor search:
After gaining the agreement on the business along with the requirements of the
vendor, the team needs to initiate their process of searching the efficient vendors. The
larger vendor-selection process creates scope for more vendors to bid for the
selection. After the confirmation on the selection process the organization needs to
send a Request For Information (RFI) to the selected vendor (Dutta, Gwebu & Wang,
2017).

SELECTION OF SELLER FOR PROJECT
 Request For Proposal and Request For Quotation:
The RFP and RFQ consists of the Submission details, introduction, business
overview, Specifications in detail, Assumptions and constraints, terms and conditions and
selection criteria which is sent to the selected vendor (Slideshare, 2010).
 Contract negotiation after proposal evaluation in vendor selection:
After calculating the result score and evaluating the total performance score, a
vendor is selected which leads to the final stage where the contract negotiation
strategy is developed.

SELECTION OF SELLER FOR PROJECT
References:
Dutta, D. K., Gwebu, K. L., & Wang, J. (2017). Strategy and vendor selection in IT
outsourcing: is there a method in the madness?. In Global sourcing of services:
Strategies, issues and challenges (pp. 451-477).
Finnerty. J. (2017). 5 Procurement Best Practices Helping Enterprises to Achieve Savings
and Productivity Gains. Retrieved from https://www.maistro.com/blogs/5-
procurement-best-practices-helping-enterprises-productivity-gains/.
Parthiban, P., Zubar, H. A., & Katakar, P. (2013). Vendor selection problem: a multi-criteria
approach based on strategic decisions. International Journal of Production
Research, 51(5), 1535-1548.
Slideshare (2010). Top 10 Procurement KPI\'s. Retrieved from
https://www.slideshare.net/amberkar/top-10-procurement-kpis?ref=https://
courses.cityu.edu/webapps/blackboard/content/listContent.jsp?
course_id=_105097_1&content_id=_7935818_1.

SELECTION OF SELLER FOR PROJECT