Vendor activation for different companies.

Deepa Hegde
3 min readDec 13, 2019


A vendor is a party in the supply chain that makes goods and services available to companies or consumers. The term vendor is generally used for the person who supplies various raw materials and other supplies to other manufacturing companies in order to be able to manufacture the finished goods or end product.

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Vendors by definition we know play a very crucial role for any business, as they are the ones from which the end product can be created. What goods and supplies they provide, are very crucial to have the right quality of standardized end product. Hence conducting proper vendor diligence is very important.

Activation of a vendor for a different company simply means to do proper diligence and enquiry about the vendor before activating him as your vendor. So basically this process involves conducting audits and checks to ensure a vendor can be activated as a qualified vendor and is suitable for business collaboration.

Vendor activation is done by ensuring the following guidelines are met:-

1. Pricing — to run a successful business, you must always ensure to have reduced spending. One way is to choose a vendor who offers the same quality products at the least cost possible. Before activating a vendor get bids from different vendors and choose the best fit.

2. Quality — in business, the quality of the end product is what matters most. It is the most essential criteria for you to maintain. In order to achieve this activate vendors whose products are of standard quality. It is advisable to see samples to confirm the same before activation.

3. Capacity and competency — before activating a vendor, check if he has the capacity to provide you with your needs. If he is not competent enough to match up with your needs, it will be a difficulty to get finished goods on time.

4. Control — always check if the vendor has a good control of the product and the timeline. Check if he knows from where he is getting his supplies and how effectively he will manage the delivery. Activating a vendor who has good control in the supply chain makes things easier.

5. References — always check for the vendor details from other sources. Take references from other companies and their experience. A vendor who has a good reference is worth partnering with.

These are a few things to keep in mind before you activate any vendor for a company. Also, you must check that the vendor has good communication skills and integrity because you are getting into a partnership with him. Ensure his raw materials are clean and pass the quality tests. Also, take note of his reputation with other companies.

For any business to run successfully, having good vendors is a necessity. So before activating any vendor do a due diligence check and ensure you know with whom you are collaborating.



Deepa Hegde

I am business editor at Medium, mainly on technology and employment. When I don’t write, I love reading bestsellers, tracking fashion trends & listening music.