Memorandum: Vendor Selection Criteria

Memorandum

To: Use your instructor’s name
From: Jonathan Richardson
Date:
Subject: Vendor Selection Criteria

The purpose of this memo is to explain the importance of selection criteria when selecting vendors. Selection criteria is crucial when determing which vendors will be the best fit for the company because it allows you to see the skills, knowledge, expierence, attribuites and qualifications said vendors offer. When selecting a vendor in order to ensure that they will fufill your company needs you should develop a specific criteria. In the process of developing the specific criteia you should have a group of vendors in mind and send them a Request for Information("Bucki,"2016). With research from Selecting A Vendor I have

2.Ability to constantly supply products or services.
It is important to be sure that the vendor you select will not run into supply issues that will then deter you from meeting your customer needs. Selecting a vendor that can provide products and services on a regualr basis is a major key("Selecting A Vendor,"n.d,Vendor Selection Criteria section).
3.Substantial catalogue of products or range of services.
This will help your company minimize the number of vendors needed. This also is a great key due to the fact of flexibility that it offers. You will be able to keep with the same vendor when your company grows("Selecting A Vendor,"n.d,Vendor Selection Criteria section).
4.Terms of business.
The terms of business are very important as they have a direct impact on cash flow for your company.("Selecting A Vendor,"n.d,Vendor Selection Criteria section). 5.Testimonials and references.
It is always a good idea to check and ensure that the vendor is reliable and provides good services("Selecting A Vendor,"n.d,Vendor Selection Criteria

One company is Johns Hopkins Health System. The following information is the selection criteria that they use when selecting vendors. "Responsiveness to emergencies, Vendor innovation (assisting our institutions in improving quality and reducing costs), Adherence to policies (Vendormate; Appointments; Invoice processing, Backorders, Compliance to Contract Terms and Conditions, Professional representation, etc.), Ability to provide quality product in a timely and consistent manner Invoice discrepancies – Minimal number of discrepancies, Committed pricing, Competitive pricing, Order Accuracy Rate, Delivery lead times, Professional, experienced product support, Product packaging, Distribution programs, Financial stability, Favorable terms and conditions, Contractual