Overview

The VENDOR Selection Model provides a comprehensive framework for evaluating and selecting B2B technology vendors. This systematic approach ensures that vendor selection decisions are based on objective criteria that align with business objectives and risk tolerance.

Unlike traditional vendor evaluation methods that focus primarily on cost and features, the VENDOR model evaluates vendors across six critical dimensions to ensure long-term success and partnership value.

Framework Components

V - Value

20%

Evaluates the business value proposition, competitive advantage, and strategic benefits that the vendor solution provides.

Evaluation Criteria:

  • Business value proposition
  • Competitive advantage potential
  • Strategic alignment with business goals
  • Market differentiation
  • Innovation and future potential

E - Experience

20%

Assesses vendor track record, industry expertise, customer success stories, and proven experience in similar implementations.

Evaluation Criteria:

  • Industry experience and expertise
  • Customer success stories and case studies
  • Track record in similar implementations
  • Vendor maturity and stability
  • Reference customer feedback

N - Network

15%

Evaluates partner ecosystem, integration capabilities, third-party relationships, and network effects of the vendor solution.

Evaluation Criteria:

  • Partner ecosystem and integrations
  • Third-party relationships
  • Network effects and community
  • Integration capabilities
  • Marketplace and app store presence

D - Delivery

20%

Assesses implementation capabilities, project management, delivery methodology, and support during deployment.

Evaluation Criteria:

  • Implementation methodology
  • Project management capabilities
  • Delivery timeline and milestones
  • Change management support
  • Training and knowledge transfer

O - Operations

15%

Evaluates ongoing operational excellence, support quality, service level agreements, and operational efficiency.

Evaluation Criteria:

  • Service level agreements (SLAs)
  • Support quality and responsiveness
  • Operational efficiency and automation
  • Monitoring and maintenance capabilities
  • Scalability and performance

R - Risk

10%

Analyzes vendor risk factors, financial stability, security posture, compliance capabilities, and risk mitigation strategies.

Evaluation Criteria:

  • Financial stability and viability
  • Security and compliance posture
  • Data protection and privacy
  • Business continuity planning
  • Risk mitigation strategies

Implementation Process

1

Define Vendor Requirements

Establish specific requirements, success criteria, and evaluation parameters for vendor selection.

2

Create Vendor Shortlist

Identify and qualify potential vendors based on initial requirements and capabilities.

3

Conduct VENDOR Evaluation

Evaluate each vendor using the VENDOR framework across all six dimensions.

4

Score and Rank Vendors

Calculate weighted scores and create vendor ranking based on evaluation results.

5

Make Selection Decision

Select preferred vendor and negotiate terms based on evaluation findings.

Scoring Methodology

Each VENDOR component is scored on a scale of 1-10, with specific criteria for each score level. The final VENDOR score is calculated using weighted averages:

Value: 20%
Experience: 20%
Network: 15%
Delivery: 20%
Operations: 15%
Risk: 10%

Note: Risk scoring is inverted (lower risk = higher score) to ensure that vendors with better risk profiles receive higher overall scores.