What is the purpose of a Vendor of Record (VOR) in a selection strategy?

The purpose of a Vendor of Record (VOR) primarily revolves around establishing a streamlined relationship between the purchasing organization and the selected vendors. By selecting a VOR, the organization secures favorable pricing structures due to a continuous and repeat relationship with the vendor. The VOR can negotiate bulk purchasing deals or long-term contracts that lead to cost savings, ensuring the organization gets the best value for repeated orders.

While other aspects of supplier selection and evaluation are important—such as market research, assessing various suppliers, or conducting surveys on capabilities—the core strength of having a VOR lies in the established trust and reliability that comes with repeat business. This dynamic allows organizations to manage their procurement processes more efficiently and effectively while optimizing costs over time.