# Step

1 Setting the business goals

2 Put together the selection team

3 Agree on the business KPI

4 Define the technical requirements
5 Define the requirements from the vendor

6 Define the grading process

7 Get Stakeholder confirmation

8 Compile a list of possible vendors

9 Make the first cut

10 Write an RFI document

11 Analyze the responses

12 Write an RFP document

13 Analyze the responses

14 Make the second cut

Request a POC from the vendors that

15
made the cut
16 Compile a short list
17 Present the short list

18 Publish an RFQ

19 Selection
20 Contract negotiation
21 Sign the contract
22 Start the supplying process
 Description Owner
A strategic decision that requires setting and quantifying the goal that is
Board of directors
supposed to be enabled by the vendor
Define the evaluation team, their mandate, due dates, budget and division of
Supply Chain VP
labor
Key Performance Indicators: How to evaluate whether the business goal was
PMO
achieved
Basically in this step it is agreed what the product / service needs to do Engineering
Agree on what the vendor needs to ultimately supply Selection Team

Set the parameters on which the vendors will be graded, the weight each
parameter will be given and the minimum grade acceptable to move on to the
next selection level. Selection Team
The parameters should include at least: Price, Quality, Delivery (on-time, quantity,
etc.), Service
Publicly publish steps 1-6, and receive stakeholder confirmation Selection Team
In this step the experience and knowledge of the team comes into play: the more
Selection Team
vendors the team can find, the better the process and final outcome will be

Ideally this step will be done by different members of the team than those who put
Selection Team
together the list to rule out bias
Request for Information. This document will be sent out to the vendors that made
the first cut, and will essentially ask them if they're capable of delivering the Selection Team
needed product / service
Compile a list of all the vendors that are interested in your offer Selection Team

Request for Proposal. This document will be sent out to the vendors that made
the list of step #11. The vendors' answer should include at least the following -
* Executive Summary that includes the vendors' backround and business
overview
* The technical specificaitions of the product or business specifications of the Selection Team
service
* Constraints / Assumptions
* T's & C's (Terms and Conditions). This section usually includes the quote for the
product / service

According to the grading process, the team will grade each response to the RFP's
Selection Team
and compile a grade list

In step #6, a minimal grade was set. All the vendors that passed the minimal
grade should make the second cut. However if too many vendors made the cut Selection Team
and the team can't accommodate them all, a third cut will be necessary

Proff of Concept. This is an optional phase, and should be used when the
product / service is complicated or innovative. The vendors are asked to provide Vendors
evidence that they are capable of supplying what they commited to
Choose the 3-5 top vendors according to their RFP grade and POC answer Selection Team
Present the short list to the main stakeholders, and publicly publish the grades of
Selection Team
all the vendors
Request for Quotation - This is an optional phase: In this phase the vendors
Selection Team
which made the short list can ammend their quote (which wasn't published)
Selection Team / Key
Along with the main stakeholders, select the winning bid
Stakeholders
Start the negotiation process with the winning vendor Selection Team
If all goes well in step #20, sign the contract Legal division
Make sure that your company is ready to receive the goods / services. Supply Chain