Solutions - Vendor Selection and Management

Every business buys things. Yet some buy better than others. Why? Because some organizations use a better selection and measurement process.

There are two common vendor selection practices today that are in need of improvement. In the first practice, the vendor selection decision is based on a laundry list of “criteria” or “requirements” that list every feature or function of the solution desired. These lists are often compiled by scouring vendor product literature and building a massive, comparative spreadsheet of specifications. While useful, this information often mires selection teams in minutiae and misleads them into selecting a solution that is based more on what the vendors want to sell them, than on what your organization truly needs.

On the opposite side of the spectrum another approach is frequently used. In this second practice, the organization identifies a need and then initiates a search for a solution. Too frequently, however, the organization takes the first solution that comes along that minimally satisfies the initial purpose, without being patient enough to search for additional alternatives. This is what Nobel Laureate Herbert Simon called “satisficing” – or the acceptance of a solution that adequately satisfies the goals of the decision, without maximizing or optimizing the outcome. While this practice may work for some, it leaves much to be desired:

  • How much money was left on the table that could have been kept in your pocket?
  • Where there other alternative solutions available that might have better met your needs?
  • Could you have conducted a better evaluation of the alternatives considered, using a more accurate and faster measurement approach?
  • Could you have saved time and money, and have produced a more satisfactory outcome, by being a bit more patient to identify and evaluate other potential alternatives?
  • Could you have prevented a protest by using a best practice selection methodology that creates a clear audit trail?

What lacks in these traditional approaches to vendor selection is a deep dive on organizational goals and decision objectives, a sound measurement process, and a thorough investigation of the alternatives available.

The Analytic Hierarchy Process (AHP) is ideally suited for vendor selection decisions. Through clear-minded identification of goals and objectives, a sound measurement process, and a rigorous consideration of at least three, preferably five or more alternatives, this methodology virtually guarantees a better outcome for your team.

At Synth Solutions we can help your team create best value and protest proof its vendor and source selection decisions. Using our VendorSynth™ methodology, we take a systems approach to vendor management that unites the needs clarification process, with vendor selection, vendor management, and performance measurement - ensures the vendor lifecycle is considered.

We offer several solutions to help your vendor decisions succeed:


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