This technique is about ensuring that an organization follows the correct procedures to assess a potential new vendor in terms of the following categories of capabilities:

• The vendor's knowledge and expertise
• The licensing and pricing models
• The vendor's market position
• The terms and conditions
• The vendor's experience, reputation, and stability

By following these steps of assessing vendors, the organization safeguards itself by increasing their chances of developing a productive and fair relationship with a suitable and reliable vendor.