This is a template that provides businesses with information about how to properly
select a vendor for a project. Vendor selection is a vital process where a company
should select a proficient and punctual vendor that will not cause a delay in project
deliverables. This template includes information regarding process inputs, engaging
sourcing specialists, and details of the sourcing process. This template should be used
by small businesses or other entities that want information about the procedure behind
vendor selection.
Vendor Assessment and Selection Process
Project Title
What is the Vendor Assessment and Selection Process?
The Vendor Assessment and Selection Process outlines the key functions necessary to
select vendors for externally sourced functions.
This document outlines the steps leading up to the engagement of Supply Chain
Management, as well as the high-level steps that are part of the sourcing process.
This document was written as a guide to assist in the assessment and selection of
vendors using Supply Chain Management.
Project Title
Vendor Assessment and Selection Process
Table of Contents
I. Process Inputs and Engaging Sourcing Specialists ............................................................................ 4
II. Sourcing Process .................................................................................................................................... 4
Revision History
No. Date By Reason
Page 3 of 6
Project Title
Vendor Assessment and Selection Process
I. Process Inputs and Engaging Sourcing Specialists
The following deliverables provide foundational information to the vendor sourcing process:
Voice of the Customer
Project Charter
Initial Business Case
Critical To Quality (CTQ) requirements
Business Requirements
The role of the sourcing specialist is to lead project teams through the process of assessing and selecting
vendors, as well as negotiating contracts, assigning supplier relationship managers, and establishing
Service Level Agreements.
II. Sourcing Process
The sourcing process begins when a project manager, LOB representative, or relationship manager
identifies a potential need for an external product or service provider.
Description of process flow
1. Need identified: A business need is identified through the Voice of the Customer and Project
Charter.
2. Review Project Scope – business scope is determined in the Project Charter
3. Projected spending decision point – an initial business case will determine the budget available
for the project. SCM finance may need to be engaged to refine the initial business case before
the supplier selection processes begin.
4. “Supplier has been selected” decision point – if an existing vendor supplier can meet the LOB
requirements, then the sourcing specialist will help drive the contract development or negotiation
process in conjunction with business partners from Legal, Compliance, and Audit.
5. If no existing vendor supplier can meet requirements, the sourcing specialist will drive the
Supplier Selection Process. The supplier selection process begins with an assessment of the
CTQ elements and a search for potential suppliers. During this time, the project team should be
developing detailed business requirements, functional requirements, and technical requirements.
These requirements will be used as input to