Step Two of Vendor Selection: How to Conduct a Vendor Search

1. Compile a list of possible vendors.  You will need to collect contact information in a spreadsheet or database.  Possible sources for your search could include:
• Google
• Business associates
• Registers and directories specific to your industry as well as general ones such as The Thomas Register.

2. Select vendors from which to request information.  Use RFIs to narrow your list.  Depending on project size, RFIs should be sent to 3-12 vendors.
3. Write a Request for Information (RFI). For smaller, straightforward needs these should be short and simple.
• A cover letter introducing your company
• A description of the good or service needed
• A request for company brochures
• A list of vendor criteria including the response deadline
Some examples of questions that would establish vendor criteria:
• Are your employees bonded and insured?
• Can you provide references that we can speak with directly?
• What are the hours of your technical service department?
• What is the turn around time for local orders?
4. Evaluate responses and create a short list of vendors to assess further.  Gather the vendor evaluation team and go through the responses.  Any vendors not meeting any of the "must have" requirements should be eliminated. The final list should have between two and seven vendors, depending on the scope of the project (both duration and dollar amount).

Adapted from Step #2 in the Vendor Selection Process, about.com
http://bit.ly/cCY6Ei