Market Review


Evaluate Vendors and produce Shortlist

Reduce the Vendors to two or three who will be further evaluated.
  • Responses
  • Evaluation Checklist
    1. Distribute the responses.
    2. Hold a workshop to rate the responses.
    3. Make a decision on who should proceed.
  • Two or three vendors who will proceed to the next stage

Give the people involved in the decision process a few days to read through the responses. When they are distributed request that anyone who has does not have time to read the responses excuses themselves from the selection workshop.

The prime focus is the evaluation spreadsheet. There may be other considerations, or it may be clear that a certain vendor has a distinct advantage. Be cautious about leaving yourself with only one candidate as it reduces your negotiation advantage.

The answer should not be a mathematical calculation using the evaluation sheet to score each criteria. It should be an objective decision about who are likely to have a solution to best fit your needs. Use the evaluation sheet as a component of the discussion.

Also be careful when evaluating the people with whom you have been in contact. Usually this is their new business team and not the people you will be working with if you become a customer. You will probably be assigned to an Account Manager, and rely on Technical Consultants for ongoing support. On the other hand if you find the company difficult to work with, it might ring some warning bells for the future level of support.

Another factor to consider is the reason why particular solutions are rejected. These will need to be noted in the Market Review Report. In months or years to come someone may question why a certain solution was rejected. They should be able to revisit the evaluation process and clearly see why.

Once the decision is made, the unsuccessful vendors should be formally notified. They should be thanked for their participation in the process and notified that, although they have a quality solution, it does not match the specific requirements of the organisation. Drafts of a success or rejection letter are available below.

It is dangerous to give specific reasons as it can open a long and convoluted discussion as to why they should be reinstated. If you have carried out the evaluation properly, there will be a number of limitations identified and you do not want to have to address each with the vendor.

RFP/RFQ/RFT Evaluation A template to record the pros and cons of each Vendor's evaluation.
Vendor Success Letter Draft of the text to use in a letter to successful vendors
Vendor Rejection Letter Draft of the text to use in a letter to unsuccessful vendors

Return to the top