This afternoon’s Selecting the Right Solution Provider for Your Retail Operations: eCommerce Platform Selection Case-Study focused on the best practices for selecting the right solution provider for your business. The panel included representatives from top online retailers New York & Company, David’s Bridal, Diane Von Furstenberg and Bare Escentuals and was moderated by Mitchell Kramer.

The following is a recap of the tips these retailers learned from the trenches at every key phase of the vendor selection process:

• Start
• Research
• Developing and prioritizing requirements
• Set evaluation criteria
• Request for information and proposals
• Checking references
• Proposal
• Considering options, approaches and selection solutions
• Implementation

Start

Do’s

• Clearly define why you’re replatforming, agree on short-term and long term benefits that will be realized
• Overcommunicate – plan for lots of project updates, meetings and reports
• Make sure stakeholders are involved right from the start
• Research options using experienced vendors and partners

Do not’s

• Don’t think re-platforming will fix business process problems (garbage in, garbage out)
• Don’t underestimate the cost of the project (factor about 25% additional “buffer” into the budget)
• Don’t assume current staffing will carry you through the project (integration partners, etc)
• Don’t assume agreement with the project = a complete understanding of what needs to be done and why

Research phase

Do’s

• Understand what end result you want and success criteria before you begin, and communicate them clearly
• Document success criteria for RFP group, a simple way is a checklist or scorecard
• Involve a C-level executive and IT executive in your RFP group, and include members from various functions in your organization (finance, marketing etc)

Do not’s

Developing and prioritizing requirements

Do’s

Do not’s

• Don’t allow the 20% of top requirements to affect your judgment on the 80% of requirements
• Don’t lose focus on what your organization is not good at
• Don’t fall into the “this is how we do this today” trap

Set evaluation criteria

Do’s

• Start with entrance criteria and “table stakes” – this saves a lot of time for both you and vendor
• Be specific and concise with your criteria – 1 paragraph or less
• Gain internal signoff before heading to vendor selection
• Share evaluation criteria with vendors and allow them to explain how their product or service meets your needs

Do not’s

• Don’t include vendors outside your selection criteria

Request for information and proposal

RFI (request for information) do’s

• Include this step if you need information on a new industry or from an unfamiliar vendor, if your new system is “critical” to your business or if you need to narrow your playing field of vendors

RFI do not’s

• Don’t skip this step if you need it because of tight time lines

RFP (request for proposal) do’s

• Be specific about key milestones and dates
• Set a hard deadline – and add 25% to that deadline as buffer
• Be realistic about timelines and manage internal expectations – often executives are not aware of the level of detail involved

RFP do not’s

• Don’t take on RFP work in the middle of critical business periods (holiday, back to school etc)
• Don’t assume every milestone will stay on schedule

Checking references

Do’s

• Reach out to colleagues who’ve done process before, linkedin, shop.og posting information, vendor user groups – due diligence
• Secondary research forrester / Gartner
• Information about company itself –stock price today vs. one year ago, financial health etc. people previously employed by company etc.
• Dig into references, the people you speak with should have similar experiences to you
• Avail yourself of vendor provided references, but also check out blind references – could discover another side of the story
• Consider references outside of your vertical
• Consider hiring a consultant to help you with your overall project – someone objective and familiar with the process
• Prepare a list of questions for your references so you don’t take more of their time than you need to – but be aware to keep the list short, and allow references to decline to answer certain questions

Do not’s

• Don’t short circuit this process – you can glean more than just from white papers and site copy

Proposal

Do’s

• Combine the terms of the website development including time frames potential constraints and legal responsibilities involved
• Determine specific items included in quotations, not cost of additional services and any penalty provisions
• Pay attention to the qualifications of the people who will actually be performing the work for you
• Look for a summary of organization and outcomes to be achieved, be on the same page with your vendor

Do not’s

• Don’t assume everything is included. Watch out for integration costs. Integration with POS and warehouse systems can be huge
• Don’t accept a proposal without a delivered deadline. It is a written understanding between parties
  Considering options, approaches and selection solutions

Considering options, approaches and selection solutions

Do’s

• Define the “long list” of providers and platforms, consider where the bisuiness will be in 3-5 years
• Determine selection team and agree on the process prior to down-selecting
• Use the opportunity to eductate the organization through the process

Do not’s

• Be afraid to let the vendor educate you
• But also don’t allow them to create requirements that are not important to YOUR organization
• Lose control of the process either internally or externally
• Forget to bring the internal stakeholders (all of them) along in the process

Implementation

Do’s

• Properly staff the project
• Ensure time padding exists for high risk and complex items
• Share the responsibilities for successful implementation
• Ensure segmentation to learning for the self sufficient in critical areas to be

Do not’s