Vendor development is essential for buying of material in right quantity, of right quality, at right price from a right source, at right time and place. Thus, source selection begins after the user department forwards material requisition form to purchase department. The purchase department thus, calls quotations, invites tenders, receives and processes them. The comparative statements, on the basis of offers made must exhibit in addition to price differentials, a brief history of tenders in respect of their quality standards dependability and performance reliability. After critical examination of all the aspects based on information supplied by them, a particular vendor is selected who can establish suitability criterion in most effective manner. On asking, selected vendor generally supply __ampersandsignbdquo;initial sample?. If approved, this would then be followed by __ampersandsignbdquo;initial supply?. The evaluation of initial supply results should be supplemented by on-the-spot study team visits at the vendor?s plant consisting of production engineers, quality controllers, cost-accountants and finance expert. The team should make a detailed study of processes, organization and other allied matters necessary for vendor evaluation. This composite scheme would then form the basis for vendor selection rather than by results of a single sample as practiced in many organizations. On the basis of this study, bulk supply orders should follow.