Vendor Analysis is the process of assessing potential suppliers and their products or services in order to classify and compare them based on important criteria such as pricing, quality, performance, and delivery. By analyzing vendors in this manner, organizations are able to make informed decisions about where to place their business. Vendor Analysis also helps identify potential partners and weaknesses of individual vendors, allowing businesses to leverage the right resources for their specific needs. With proper analysis, organizations can maximize customer satisfaction while reducing costs and increasing profits.