Vendor Assessment Template

The vendor assessment template is a change management tool used in business management and educational institutes. Basically, it is a process that business organizations can use to ascertain if prospective vendors and suppliers are meeting the organizational standard and commitments once under contract. The goal is to find a low-risk supplier or vendor as well as to keep an eye on the vendors. While performing this process, you find out the potent risks while working with a vendor, then you decide whether the rewards of working with them doing profitable are compared to the risks. The decisions are based on the policies, conditions, goals and needs of your organization. Conducting a vendor assessment is a long and hectic process, but not conducting it can lead to loss of business, legal fines and damage to your reputation.

How to Conduct a Vendor Assessment?

The following are the steps which anyone can use to prepare his/her own vendor assessment:

Step 1: Types of Risk Elements:

Before you begin to assess the vendors, you need to know different types of risks that you could face in the future. Neglecting even one of these categories can leave you scrambling if something goes wrong.

• Strategic risk.

• Financial risk.

• Technical risk.

• Resource risk.

• Replacement risk.

Step 2: Ascertain Risk Criteria:

After you know all the possible categories of risk, it’s time to develop risk criteria. This depends on the type of business you are conducting with the vendors. To avoid any type of trouble in the future and find the vendor that best fits you, assess vendors consistently. Don’t teach them fast just because you know someone who works there.

Step 3: Assess each Product and Service:

It is important to evaluate both the company you are getting service from and what type of products they are providing you. This gives you a full picture of the potential risk. This helps you to decide whether you want to start or continue a business relationship with them.

Step 4: Use Experts’ Advice:

It is possible that you aren’t an expert in every type of vendor risk. So, to get a full picture of what type of risk you can face, you need to have great knowledge of this matter. Therefore, gaining knowledge from other departments of your organization or even external help is very useful. In this way, you can assess a vendor’s potential risk at a deeper and better level.

Step 5: Assess Every Vendor:

Assessing every vendor, no matter if they provide a big or small service, is an important step. This step should be done before you go into partnership with them. Avoiding this step can be a big risk for your organization.

Step 6: Divide Vendors by Risk Level:

After assessing the vendors, it’s time for you to separate each vendor by level of risk. Separating them can help you decide whether you want to work with them and spend up the risk management planning process if so.

Step 7: Create a Risk Management Plan:

Once it’s decided with which vendor you want to work, you have determined their risk level. It’s time for you to create a risk management plan. Make a plan of how you will manage the risk and work with the vendors properly.

Templates for Vendor Assessment:

louisville.edu

elsmar.com