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Checklist for choosing a supplier

The checklist below outlines a basic process for an organisation to choose a supplier including consideration of any relevant Whole of Victorian Government contracts as well as current and potential suppliers.

  1. Which good or service is required by your organisation?
  2. What are the requirements and objectives of stakeholders in your organisation? Take into account:
    • principles, values and organisational strategies e.g. environmental objectives, adherence to human rights and buying local
    • timing
    • quality
    • delivery needs
    • price level.
  3. What is your organisations current and past spend on the good or service and the volume used?
  4. What is the projected future demand for the good or service?
  5. Are there any suitable WofG contracts that could be used?
    Hint:
    • take note of any rules and specific terms for the contract e.g. whether there is an obligation to purchase from the contracted supplier after accessing the contract
    • the decision to use Whole of Victorian Government contracts should be made across your whole organisation so maximum benefit and efficiency can be gained
    • take into account any discounts offered to your employees by current and other potential suppliers because such incentives are not offered by suppliers under Whole of Victorian Government contracts.
    Also refer to related information:
    • Whole of Victorian Government contracts
    • Advantages of using Whole of Victorian Government contracts.
  6. Are there any current suppliers of the good or service to your organisation?
  7. Are there any other potential suppliers of the good or service?
    Hint:
    Identifying potential suppliers could involve:
    • accessing knowledge about suppliers who have previously provided required goods or services
    • using recommendations or good reports from colleagues and partners
    • checking industry association websites.
  8. How much do you estimate the good or service will cost?
    Hint:
    • the Total Cost of Ownership or Whole-of-Life cost includes usage and administration costs over time as well as price so gives a better picture of how the good/service meets value for money objectives and what it will cost over its lifetime
    • remember to include what it will cost to change from a current supplier to a different supplier in your cost / benefit analysis.
  9. Develop a specification using information gathered in step 2 and also including:
    • description of good or service
    • selection criteria
    • delivery arrangements
    • transactional processes e.g. Invoicing, ordering system
    • evaluation criteria.
  10. Request quotes from target suppliers
    Also refer to related information:
    • Quotations.
  11. Is there any additional information you require from target suppliers?
  12. Evaluate quotes received from target suppliers
    Also refer to related information:
    • Quotations.
  13. Notify selected supplier.
  14. Notify staff in your organisation of the selected supplier.

Source: Some information adapted from the Victorian Government Purchasing Boards Procurement Practitioner's Guide:

Related information