Almodovar, Ysha Bhel A.

BSBAMM 2-2

CHAPTER 4:
Essentials of Business Process Outsourcing by Thomas N. Duening and Rick L.

QUESTIONS:
1. Enumerate and discuss the eight vendor identification and selection processes.
THE VENDOR AND IDENTIFICATION AND SELECTION PROCESS

1. Appoint a vendor selection team

- There is far more to choosing an outsourcing vendor than there is to choosing a
new supplier. Unlike the buyer-supplier relationship, the BPO buyer-vendor
relationship involves a customized service, detailed agreement on service levels,
and a strategically oriented long-term contract.
2. Establish qualifications
- The VST should be established a regular meeting schedule and set clear goals and
objectives.
3. Develop a long list
- The long-list development process is generally conducted in a semi-clandestine
manner.
4. Distribute the request for information
- This involves directly gathering information from the candidates
5. Distribute the request for proposals
- The objective of developing an RFP is to create a document that details the
services, activities and performance targets requires for the BPO project.
6. Evaluate proposals
7. Select a short list
8. Select a vendor
- Final vendor selection should be completed shortly after the second of face-to-
face presentations

2. Which among the 8 steps is crucial? Why?

The first step in vendor management involves the selection of the right vendor.
The very first step is most crucial in many management practices as they define the
course for businesses. Vendor selection involves extensive research and deliberation to
select the best fit for the vendor. The selection process involves understanding the
supplier products and process adopted by the vendor so as to avoid any vendor risk in the
future.