The 5 Top Criteria to be Considered While Selecting the Right Vendor for SME's

For any business its crucial to select just the right vendor to get work done. For SMEs obviously the game becomes a little challenging as for them every step of it is critical, as they might not be able to afford choice mistakes. Their budgets might not allow experimentation and selecting multiple vendors at various growth stages of business. Should price be the only factor? Does requirement assessment plays a major role? Should service quality (SLA'a) be kept on high priority? Should SME's look at a overall long term ROI as a factor?

The top 5 criteria that should be considered by SMEs while selecting the right vendor are:

• Reference Checks

Carry out a reference check to understand the credentials keeping in mind the Quality of Service/products delivered/implemented and go one step ahead of either calling or meeting the existing customer/s of the vendor. Even though the existing customer/s may not given any guarantee on the services, but it gives a level of comfort 

• Evaluate level of engagement

 Evaluate the level of engagement of the vendor from the date of inquiry till negotiation and this is the key factor for any SMEs

• Requirement Mapping

Check if the vendor takes the pains and has the patience in terms of taking you through all the solutions addressed in the proposal, which ensures that the vendor has understood the business needs and requirements clearly.

• Pro-active nature and consultative capabilities

The SME has to really understand that their vendor has the right consulting capabilities and that they choose a vendor which can understand their business and the industry well, along with the overall business space. This will ensure that the vendor delivers the right suggestive offering/ product and evolve according to the dynamic business environment in which the SMEs play today.

• Just right pricing

SMEs can take some very focused decisions in terms of ensuring the right pricing being paid for the services of a vendor. Pricing is a crucial element for an SME and the vendor needs to take a understanding view of the same. Pricing has to be competitive in the market and also has to be designed in a manner which shows that the vendor is ready to work with the SME for the long haul and is not in only for the short game.

Team IndiaMART Knowledge Services is committed to enable SMEs with tools, tips and techniques to help them reach up the value chain and hence achieve the next level of growth. For more information on how you can create new opportunities for your business, drop in a comment to this post and we will get in touch with you!