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Default VLOOKUP best formula to use?

I have a worksheet that I have to update daily from data that is created by
an SQL query for orders created and not sent. I have to distinguish between
production and test vendors. I keep a separate worksheet that has the vendor
number, description and status. Once I update the first spreadsheet with the
SQL data, I would like to run something against my second worksheet that
would change the background color of the test vendors, parallel vendors, etc.
in the first spreadsheet based on the vendor/status in the second.

Hope that makes sense and I am not sure if VLOOKUP with conditional
formatting would be my choice.

Thanks.
 
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