Do you think it is a risk to go with a non preferred vendor and if so how could

Do you think it is a risk to go with a non preferred

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goodies. Do you think it is a risk to go with a non-preferred vendor and if so, how could you manage the risk? Using a non-preferred vendor or a preferred vendor both carry risk of their own. I believe that developing a selection process based on a well-vetted “Request for Price/Proposal” process affords the flexibility of not being vendor bound, where you give up your flexibility to be agile and adapt to changing competitive solutions. There is also the situation where your preferred vendor also has preferred vendors with may not provide you with the best technology solution. If an organization is going to used preferred vendors, then it has to be done in a win- win context for both parties involved. If I’m going to make you a preferred vendor for goods/services, then in return I’m going to ask for and expect to receive discounts and other services in return for being a preferred vendor. The only exception would be if you are not capable of providing the goods/services that are needed. References Schwalbe, K. (2014). Information Technolgy Project Management (7th ed.). Boston: Cengage Learning. Retrieved December 1, 2014 - market-will-bear/
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(Post is Read) Thread:Week 11 Question 3Post:RE: Week 11 Question 3Author: Matthew Devries Posted Date:February 21, 2015 3:52 PMStatus:PublishedOverall Rating:1 2 3 4 5 Grant, I agree that there can be a lot of value to working with preferred vendors, but there can be instances in which the preferred vendor does not or cannot provide the product or services at the same level as competitors. My organization is a preferred vendor for several of our clients; however, we are still often asked to provide RFQ/RFP responses to justify our services and the pricing provided in our general contract. The challenge, at least for us, is that even if we have
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agreed-to pricing based on the preferred vendor agreement we are often faced with having to adjust our pricing based on the responses of our competitors. We just had an instance in which we lost a large piece of business to a competitor, despite the fact that we are both preferred suppliers and have the same rate card. They came in and basically "bought" the program because we made the assumption that our pricing was mandated by the rate card - the same rate card our competitor is supposed to abide by. We had a long-standing relationship with the client and have been operating the program for the past five years; however, the difference in cost between what we offered and what our competitor offered was so extreme that we were forced out of the bid. In this instance, the RFP was great for the client (because they got such a large discount on pricing - even compared to the already agreed-to pricing), but went very poorly for us.
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