5 Steps to Better Vendor Selection

Step 2:

Identify and research qualified vendors. Once you’ve determined what kind of solution you require, you can begin researching which vendors meet your criteria. The web is an excellent resource for preliminary insights into vendor performance, strengths and weaknesses, executive backgrounds, and other factors. Send each qualified candidate a request for information, and conduct a thorough team evaluation of their responses.

Also ask vendors for references within the MSP industry. Satisfied organizations should be willing to share their experiences and insights, including how long they’ve been a client, how the vendor addressed their specific operational needs, and whether its customer service team is responsive and efficient.

Step 3:

Ask the right questions. While online research and client feedback are vital, they’re no substitute for face-to-face interaction. Beyond discussing basic partnership terms, mutual goals, and overall compatibility, evaluation teams should ask questions to determine how long the vendor has been in business, its overall financial health, its partner certifications, and whether its engineering team can successfully handle the product or solution you’re looking to implement.

Some fundamental questions to consider:

• Will the product integrate seamlessly with legacy systems?
• How easy are product set-up and user training?
• Does the partnership agreement incorporate training into implementation costs?
• What kind of support does the vendor offer once the sale is complete?
• How does the vendor manage updates and upgrades, and will the process disrupt day-to-day business?

Step 4:

Schedule a product demonstration. Most qualified vendors offer free trials, enabling potential clients to test features, benefits and usability, so be sure capitalize on the opportunity. In addition to ensuring the product or service offers the bells and whistles you need, ask questions about scalability and reliability to guarantee the solution matches your current demands as well as any requirements that may surface as you grow and evolve.

Step 5:

Negotiate a clear, comprehensive contract. After you’ve identified the vendor that best meets your objectives and price range, develop a contract that stipulates deliverables, timeframes and budgeting. Be clear on all terms and conditions in the contract, including vendor compensation (total cost, payment schedule and financing terms). Remember that you’re allies, not opponents, and write a contract that’s fair and beneficial for both parties. An equitable deal and successful implementation can form the foundation of a trusted partnership that extends for years, even decades.

Vendor selection is a critical part of effective MSP operation. Following these steps can mean the difference between smooth sailing and constant storms.

About the author

Vadim Vladimirskiy is the CEO of

Adar, Inc. Under Vadim’s leadership, Adar’s streaming IT solution, Nerdio, has revolutionized the way small to mid-sized organizations handle IT management. Vadim holds an MBA from the Kellogg School of Management at Northwestern University. He currently resides in the Chicago area with his wife and four children.