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Vendor is the important constituent in the supply chain & supply chain management is truly vendor management. Supply chain management can be defined as a set of approaches being used effectively to integrate suppliers, manufacturers, warehouses& stores so that the goods/product can be produced & distributed at right quantities, to the right location, and at right time in order to minimize system-wide costs while satisfying (1) service level requirements. The primary goal of supply chain management is to coordinate the flow of raw materials, parts, and/or components from various suppliers to manufacturer/purchasing company with the purpose of producing product that meets customer's expectations. The study on supplier selection started even long before, since 1960s. Thestrategy of suppliers became so unpredictable that a new technology, namely just in time(JIT), developed where the manufacturing plant either owns its suppliers or suppliers areoutsourced under a common understandingthat they are always ready to supply thematerials required by the manufacturing plant in time.