If a vendor is providing a medical device project with defective equipment/packaging, then they need to be made aware of it immediately so that they can either address it, or at least prevent it from happening to other clients. Whether or not there will be any resulting delays in a project is based on how the contracted vendor handles the situation. The worst-case scenario at that point would be to readdress the terms to how you came about choosing that vendor so that reconsideration can be made in the future. Selecting a vendor is actually known to have phases that are aimed at directing a project to its most ideal supplier. An online source that specializes in project management states that there are five essential phases when contracting a vendor:

Phase 1 is pre-solicitation planning where it is determined whether or not a vendor is needed followed by each prospective vendor drafting a request for proposal (RFP) that shows that the vendor is interested in partnering up with the project company and is aware of the consumer’s needs and will adhere to the conditions set.

Phase 2 is where the optimal vendor is selected from the provided list of RFPs. The vendor selected in this step is usually one who provides the best quality materials at the lowest cost.

Phase 3 is to meet up with the desired vendor and award them the contract with your company. This step revolves around ensuring that the selected vendor is aware of expectations by providing them with a brief orientation of your company’s values.

Phase 4 is to contract management of both companies which allows for monitoring and control over the project’s workflow and permits the client to audit the vendor’s facility should the need arise.

Phase 5 is the contract closure in which the buyer and vendor have fulfilled their sides of the contract and final payments and closure documents are carried out.

The entire process of selecting a vendor seems to require a lot of in-person meet ups. Is it possible to apply emotional intelligence as either a PM or a vendor in order to acquire a desired contract? What happens if a PM notices too many faults at a contracted vendor’s facility during an audit? Will the contract be re-negotiated or altered? If a vendor is satisfactory and their contract is renewed, how might this new contract differ from the original one assuming there will be any changes at all?

References:
“The 5 Phases of the Vendor Selection Process” project-management website