Purpose

A Vendor assessment assess the ability of a vendor to meet commitments regarding the delivery and the consistent provision of a product or service.

Business Analysis Body of Knowledge^® (BABOK^®)

Vendor assessment is defined as the assessment or evaluation of a prospective vendor to determine if they can effectively meet the obligations and the needs of the business regarding the product. The business analyst is required to assist the business with vendor assessment and selection. The activities of the business analyst include preparation of the request for information and request for proposal packages, and participating in the vendors proof of concept. The business analyst need to have the essential knowledge and competencies needed for assessing and understanding vendor markets in order to support the business in identifying the suppliers to be invited for evaluation purposes. During the vendor assessment process, the business analyst required to implement decision analysis tools to aid the organization in selecting the best solutions.

The vendor assessment is conducted to ensure that the vendor is reliable and that the product and service meet the organization expectations and requirements. It helps to ensure that the supplier is financially secure, capable of maintaining specific staffing levels, complaint with standards, and able to commit appropriate skilled staff to support the solution. The assessment may be formal through the submission of Request for Information(RFI), Request for Quote(RFQ), Request for Tender(RFT), and Request for Proposal(RFP). It may also be informal through the word of mouth and recommendation. The standard of the organization, the complexity of the initiative, and the criticality of the solution may influence the level of formality in which vendors are assessed.

Some of the articles related to Vendor assessment techniques are as follows,

• Vendor Assessment Process - https://www.civilserviceindia.com/subject/Management/notes/vendor-evaluation-and-audit.html
• Vendor Assessment - https://static.gem.gov.in/resources/pdf/VendorAssessmentNotification.pdf
• Vendor Assessment Evaluation - http://nair.indianrailways.gov.in/uploads/files/1434968682484-Vendor%20rating%20ppt%20%5BCompatibility%20Mode%5D.pdf
• Vendor Assessment Services - https://www.cognizant.com/Resources/idc-scape-worldwide-transformation-systems-integration-services-2018-vendor-assessment.pdf
• Vendor Risk Assessment - https://wwwimages2.adobe.com/content/dam/acom/en/security/pdfs/AdobeVendorAssessmentProgramOverview.pdf
• Vendor Management - https://chapters.theiia.org/spokane/Documents/3rd%20Party%20Risk.pdf
• Vendor Assessment and Categorization - https://www.hoec.com/wp-content/uploads/2019/04/details-for-vendor-categorization-assessment.pdf
• Agile Vendor Assessment - https://www.agilityrecovery.com/assets/Agility%20Recovery%20-%20Vendor%20Assessment%20Form.pdf
• Evaluating the Performance of Vendor Assessment - https://gailonline.com/pdf/others/Procedure_for_Evaluation_of_Performance_of_Vendors-Suppliers-Consultants.pdf
• Benefits of Vendor Assessment - https://www.instituteforsupplymanagement.org/files/Pubs/Proceedings/FFGordon.pdf

Vendors play an important role in the success of the business. Businesses depend on the suppliers or vendors to supply them with services and products. In order for a business to select the right supplier, analysis writing is important about that vendor. A good vendor should be able to meet the needs of the business. Some of the factors to be considered in vendor assessment techniques are,

• Knowledge and Expertise - The common reason for using the third-party vendors is that they can provide knowledge and expertise not available within the organization.
• Licensing and Pricing Models - It is taken into account in cases where a solution or solution component is purchased from or outsourced to a third-party vendor. In many cases, solution that offer similar functionality differ greatly in their licensing model.
• Vendor Market Position - It is important to be able to compare each vendor with the competitors and decide with which market players the organization wants to get involved. The comparison of the organization profile with each vendors community may also be a factor in the assessment.
• Terms and Conditions - It refers to the continuity and integrity of the provided products and services. The terms under which the customization of the product will be executed, as well as the availability of the regular update schedule.
• Vendor Experience, Reputation, and Stability - Vendors experience with other customers provide a valuable information on how likely it is that they will be able to meet their contractual and non-contractual obligations. It can also be evaluated for conformance and compliance with external relevant standards for the quality and security.

Some of the books for Vendor assessment techniques are,

• Vendor Assessment: Evaluation and Performance | Sherry Gordon | https://www.amazon.com/Supplier-Evaluation-Performance-Meaningful-ebook/dp/B01CTX8CGV/ref=sr_1_2?dchild=1&keywords=vendor+assessment+books&qid=1562984239&sr=8-2
• Vendor Assessment: A Complete Guide | Gerardus Blokdyk | https://www.amazon.com/Vendor-Assessment-Complete-Guide-2019-ebook/dp/B07VDGZJBT/ref=sr_1_25?dchild=1&keywords=vendor+assessment+books&qid=1592986353&sr=8-25
• Vendor Assessment: A Clear and Concise Reference | Scott Seider | https://www.amazon.com/Vendor-Assessment-Clear-Concise-Reference/dp/0655530541/ref=sr_1_50?dchild=1&keywords=vendor+assessment+books&qid=1592986472&sr=8-50