The document discusses best practices for managing vendors and making purchasing decisions. It recommends establishing relationships with vendors, setting up trial experiences, and using evaluation matrices to compare vendors based on criteria like functionality, price, performance, and support. The document also discusses various purchasing sources and the pros and cons of different options like retail stores, the web, and value-added resellers.

1. MANAGING VENDORS MGT OF ISD (IMS452)

2. DEALING WITH VENDORS Establish a relationship Past experience Past organization experience Past personal experience Negotiate Help the vendors Think long term Get multiple bids

3. Cont.. DEALING WITH VENDORS Set up a trial experience Buy something small -> to make the needs clear and realistic -> note how well the vendor perform How well does each vendor meet each criterion? For important purchase decisions -> set up a simple matrix to compare the options Spending limits Formal standards to determine level of personnel to sign for how much

4. Cont.. DEALING WITH VENDORS Reviewing contracts with vendors Getting formal legal or legal consultant to assist on reviewing the contracts Issues on confidentiality, warranty, liability, applicable laws Sections Terms and Condition (Ts and Cs) Service level guarantee Specification of hardware and software Support, maintenance, upgrade terms Automatic renewals Ability to return/cancel if not satisfied Specific deliverables Associated costs, time frames etc Everything is negotiable and can ask for changes

5. Cont.. DEALING WITH VENDORS Direct company reps Effective means of getting the equipment you need Better informed about the product than VAR of how the products works, how many items they have, or have idea where to get if don’t have Value Added Reseller’s (VARs) Salespeople with multiple product line Resell other manufacturers’ product Can provide excellent price Can provide additional services Eg preload software, keep track on licenses, get detailed information on the product and get support

6. KEY EVALUATION METRICS Set up a matrix To evaluate most technology products Typical evaluation matrices include Functionality Price Performance Vendor viability: is this a vendor that will be around for a while Training required Vendor services

7. KEY EVALUATION METRICS Set up a matrix To evaluate most technology products Typical evaluation matrices include Functionality Does the product do exactly what you need it to do? Price capital investment – up-front cost of an item, including the hardware and software and other components to make it do what you need it to do Total Cost of ownership (TCO) – up-front capital investment, including the costs for ongoing support and maintenance, implementation, training, prerequisite hardware/software, conversion/migration etc Performance Vendor viability Training required

8. Cont… KEY EVALUATION METRICS Cont …Set up a matrix Vendor services – do you need the profesionals services from the vendor to customize the product, or help to install or integrate into your environment Scalability support and and service Interoperability speed of delivery and availability

9. SAMPLE EVALUATION MATRIX speed of delivery and availability interoperability support and service scalability Vendor services Training required Vendor viability Performance Price Functionality Best Option Product C Product B Product A Vendor evaluation matrix

10. GETTING CURRENT INFORMATION The Web Trade journals, newsletter and news outlet eg. www.cnet.com , www.itmanagersjournal.com , www.slashdot.org Technology standard eg. ANSI – www.ansi.org , IEEE – www.ieee.org Reference information eg. Ww.whatis.com, about.com, wikipedia.com, www.webopedia.com Vendor representatives Invite key vendors to come in and meet with you once or twice a year for specific product vendors, system integrators or resellers (executive briefing center) To tell the new product announcements, Changes in product lines What their other customers are doing with the technology Trade journals (electronic and print) Start with free publisher group first eg. Ziff-Davis ( www.ziffdavis.com ), CMP ( www.cmp.com ), IDG ( www.idg.com ) Glace the headlines – to keep you aware of what is going on Look into journal which match your responsible level and topic that relevant to your department Circulate the relevant information to your staff Sign for emal and latest newsletter

11. Cont … GETTING CURRENT INFORMATION Trade shows The seminars, conferences and panel discussions can be very valuable The topics may about a recently completed project, management strategies or the pros and cons of different technologies Make use of QA and testing and evaluating products Brown bag lunches Is an informal get together where attendees bring their own food Eg sharing knowledge after attending a course or volunteered present briefy on a technical topic of their choice (KSA)

12. PURCHASING SOURCES Web (catalogue) can quickly scan to get informed about product categories and the price information Can access them even if not connected or near the machine that you need Retail stores If they have what you want -> may be the quickest place to get something in an emergency Most corporate IT not purchase in retail stores because retail stores do not have sophisticated hardware that IT need

13. Pros and cons of buying on the Web PRO Easy to get more detail about the product Can get information about the product without buying it Easy to get comment from other users/purchases of the product Item sold online sometimes cheaper Can buy direct from the manufacturer or various resellers CON Don’t have opportunity to establish a relationship May insist credit card payment- opposed to the corporate purchase order It may difficult to assess the delivery, warranty and service options and the rights

14. Pros and cons of buying from a retail store PRO Fast Tactile – can touch CON Limited inventory It is retail operation (traditional) Eg open certain hours Eg counter queue Difficult to find things Promoter It’s primarily targeted for the consumer market Not the brand or item you are looking for

15. Cont .. PURCHASING SOURCES Gray markets Are brand name items sold outside of the producer’s official distribution channels Don’t include the company’s warranty, service and support Dollar costs and legal costs VARs Can be the best avenue for purchasing hardware and software provided you know exactly what you want Combines various components – hardware, software, services or a combination of all three to provide a custom solution It may make the environment complex and the needs will be well define, that can value added and increase the cost and not necessarily additional item