3 Keys to Successful Vendor Management Services

Proper management of your business and its services allows you to build a relationship with your suppliers and service providers that will strengthen both businesses. This does not always mean negotiating the lowest price possible, but rather it is constantly working with your vendors to come to agreements that will mutually benefit both companies. Here are a few basic strategies to strengthen vendor relations.


Sharing information and priorities bolsters support


The most important success factor of vendor management services is to share information and priorities with your vendors. By providing the necessary information at the right time you will allow a vendor to better service your needs. This may include new products and services, changes in design and expansion, or relocation changes, just to name a few.


Balancing commitment and competition is vital


One of the main goals is to gain the commitment of your vendors to assist and support the operations of your business. While the vendor is expecting a certain level of commitment from you, this does not necessarily mean that you should blindly accept the prices they provide. It is always a good idea to get a few competitive bids.


If a vendor supplies a key part or service to your operation, invite that vendor to participate in strategic meetings that involve the product they work with. Using their expertise will allow you to tap into that knowledge giving you a competitive advantage in the marketplace.


Building partnerships for long term success


The smartest and most successful vendor management services will seek long-term relationships over short-term gains and marginal cost savings. Constantly changing vendors in order to save a penny here or there will cost more money in the long run and will often impact quality. Realize that there are other benefits of a long-term relationship including preferential treatment and trust.