Vendor Evaluation Workflow for Professional Services

# Vendor Evaluation Workflow - Professional Services

## Purpose
Use when evaluating new vendors or during annual supplier reviews to make objective, documented decisions.

## When to Use
A structured vendor assessment workflow with scoring criteria, comparison templates, and approval steps for selecting new suppliers or service providers.

## Instructions
1. Review the template below and familiarise yourself with the structure
2. Replace all [bracketed placeholders] with your professional services business details
3. Customise the tone and formatting to match your brand
4. Save in your preferred tool (Notion or Airtable)

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## Vendor Evaluation Workflow

### Trigger
New vendor needed for a product or service, or annual vendor review cycle begins.

### Steps

**Step 1: Define Requirements** (Owner: Requesting Department Lead) - Within 2 business days
Document the specific requirements for the vendor: scope of supply, volume, quality standards, budget range, delivery timelines, and any compliance or certification requirements. Use the vendor requirements template in Notion.
- Tool: Notion
- Output: Vendor requirements document completed

**Step 2: Identify Candidates** (Owner: Operations/Procurement) - Within 5 business days
Research and shortlist 3-5 potential vendors. Use industry directories, referrals, and online research. Record each candidate in the Vendor Evaluation tracker in Airtable with basic details (company name, contact, website, service overview).
- Tool: Airtable
- Output: Shortlist of 3-5 vendors recorded

**Step 3: Request Proposals** (Owner: Operations/Procurement) - Within 1 business day of shortlisting
Send a standardised request for proposal (RFP) or request for quote (RFQ) to each shortlisted vendor. Include your requirements document and response deadline (typically 10 business days).
- Tool: Email
- Output: RFP/RFQ sent to all shortlisted vendors

**Step 4: Evaluate Proposals** (Owner: Operations/Procurement + Requesting Lead) - Within 3 business days of receiving proposals
Score each vendor proposal against the evaluation criteria in Airtable:
- Price competitiveness (weight: 25%)
- Quality and capability (weight: 25%)
- Reliability and references (weight: 20%)
- Terms and conditions (weight: 15%)
- Cultural fit and communication (weight: 15%)
- Tool: Airtable
- Output: Scored evaluation matrix

> Decision Point: If one vendor scores significantly higher across all criteria, proceed to reference checks. If scores are close, schedule demonstrations or site visits with the top 2-3 candidates.

**Step 5: Conduct Reference Checks** (Owner: Operations/Procurement) - Within 3 business days
Contact 2-3 references for the top candidate(s). Ask about reliability, quality, problem resolution, and overall satisfaction. Document findings in Airtable.
- Tool: Airtable + Phone/Email
- Output: Reference check results documented

**Step 6: Negotiate Terms** (Owner: Operations/Procurement + Finance) - Within 5 business days
Negotiate pricing, payment terms, service level agreements (SLAs), warranty conditions, and contract length with the preferred vendor. Document agreed terms.
- Tool: Notion
- Output: Negotiated terms documented

**Step 7: Approval** (Owner: Department Lead + Finance Manager) - Within 2 business days
Present the recommendation with the evaluation summary, reference check results, and negotiated terms. Obtain approval via Slack or formal sign-off depending on contract value.
- Tool: Slack + Notion
- Output: Vendor selection approved

**Step 8: Onboard Vendor** (Owner: Operations/Procurement) - Within 5 business days
Set up the vendor in Xero with correct payment details and GL coding. Execute the contract. Share relevant onboarding information (delivery addresses, ordering procedures, contact points).
- Tool: Airtable + Xero
- Output: Vendor onboarded and ready for first order

### Completion Criteria
- [ ] Requirements clearly documented
- [ ] Minimum 3 vendors evaluated with scored matrix
- [ ] Reference checks completed for preferred vendor
- [ ] Terms negotiated and documented
- [ ] Approval obtained from required stakeholders
- [ ] Vendor onboarded in systems with correct details

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**Complexity:** intermediate | **Setup time:** 15 minutes | **Tools:** Notion, Airtable, Slack

Note: This template has been tailored for professional services businesses in Australia. Adjust terminology and compliance references to match your specific context.