How to Select a “Favorite Vendor” for Contract Awards
By Frederick Marks, CPPO, VCO
Although the term “favorite vendor” has long been a touchstone phrase, used by both procurement and supplier communities alike, the words are not always said in the best of circumstances. Reasons behind the phrase relate to a serious subject that requires explanations, at least from the procurement side.
Organizations need to believe that their purchasing departments are awarding contracts for goods and services to the best available vendors. Exceptional organizations require assurances, research, confidence, and intelligent decision making by their purchasing personnel. Sometimes, organizations overlook certain strategies, thought processes, and research skills in their efforts to issue awards quickly, rather than for better or “best-value” reasons.
Various factors guide the selection of a “favorite vendor” and help establish beneficial relationships between the buyer and supplier. A purchaser’s goal should be to award each contract to a “favorite vendor.”
To achieve and sustain a competitive edge in the marketplace, as well as to be successful in bidding to public entities, a vendor’s bid must pass four tests of evaluation: responsiveness, responsibility, integrity, and past performance. However, these traits influence the receipt of an award. Afterward, various steps must be conducted by both parties to ensure procurement success.
I’ve never been shy about awarding a contract to my “favorite vendor,” based on the following factors:
1. The vendor’s pricing is competitive, backed by the knowledge of how to bid. If not the low bidder, this vendor’s pricing is always within the top cluster of bids. An ideal vendor is both responsive and responsible. He or she reads my specifications carefully and calls my attention to deviations or upgrades in the equipment I procure. This vendor also signs necessary forms, includes applicable attachments, and always submits bids on time. If the vendor decides not to bid, he or she tells me the reasons behind this choice.
2. I perceive trust and candor. This vendor doesn’t add to my problems, and he or she candidly informs me when something goes wrong or off track, including my own behavior. On occasion, I might hear undercurrents of discontent from some staff members who may feel threatened by these vendors, but I don’t expect to find any substance behind the discontent (such as evidence of taking sides in turf battles). When resolving problems, conversations between buyer and supplier can be direct and candid because mutual trust exists.
3. The vendor’s sales staff does not waste my time. Instead, product information provided is accurate and timely. In addition, this vendor periodically sends me articles, ideas, references, and other resources that are non-promotional and helpful to my company, position, and/or life. These vendors provide more than I anticipate, and their intent is clearly to ensure that my needs are exceeded, not merely met. What’s more, these vendors don’t resort to aggressive sales tactics, such as “This price is only good for today.”
4. The vendor’s communication is flawless. He or she doesn’t forward my calls to a cell phone, which is answered while waiting in an airport or working with another client. I never feel rushed, taken for granted, or patronized. While I know he or she can’t be available every time I call, I expect that when we do connect, I will not be competing for the vendor’s attention.
Whether I speak to a live person, an associate, answering service, or even voice mail, I am treated with respect and receive direct answers. I am never placed incessantly on “hold” when I phone the vendor, and whoever answers the call doesn’t mispronounce my name. When calling to simply leave a message, I am not subjected to the same, 30-second commercial for the vendor’s services. In addition, this vendor’s letters and e-mail correspondence are error free and electronically compatible with my organization’s procedures.
5. The vendor respects my culture and operation. Because the vendor has taken the time to learn about how my agency operates, he or she avoids making unreasonable demands and preventable mistakes.
6. Fixing problems is their specialty. If a problem occurs, the vendor rectifies the situation on the first phone call. He or she follows up with my internal staff, and I have confidence that the problem is resolved.
7. Optimum vendors never say, “I gave them an order.” Instead, these vendors always feel they work for every order received and are keenly aware of the competitive marketplace. They continually try to earn my business and don’t expect special treatment.
8. My “favorite vendor” works as hard as I do. He or she meets or exceeds my standard of excellence, as well as my work ethic.
Although establishing a mutually beneficial relationship requires hard work by the supplier and procurement pro, the effort is well worth the trouble. Go into the marketplace and find your own “favorite vendor.” Better yet, make all of your awards to your “favorite vendor.”
Editor’s Note: Frederick Marks, CPPO, VCO (Virginia Contracting Officer), is a retired purchasing officer who formerly held positions as a Supervising Buyer for the Port Authority of New York and New Jersey, as well as Director of Materiel Management for Northern Virginia Community College. Marks is a master instructor for the National Institute of Governmental Purchasing (NIGP), and he has written courses and presented seminars about numerous purchasing and business topics. In 2005, Marks was the recipient of NIGP’s Distinguished Service Award.
