Managing Vendors

Best practices for managing vendors and integrating their products for a single project include:

1. Write a tight specification. Do not consider outsourcing until you have a solid, well defined definition of what you require internally among the users.

1. Complete the specification asking for performance and demonstration exhibits from the bidders. Award on the basis of best value and past performance, not on lowest price.

1. Write a tight contract and include the specification as a performance parameter together with a payment milestone plan based on achieving the specification. Pay only on the basis of successful completion of milestones.

1. If the supplier wants more funds, insist he or she demonstrate the work being performed is outside the contract and the specification and carefully consider whether or not the new effort is necessary.

1. Make sure the supplier understands the above baseline management principles and have he or she sign the contract.

Author

The author of this article is Ken Larson.