3 Steps to Successful Vendor Management

I don’t manage vendors much these days but I know a lot of people who manage client accounts. On what makes for a successful client/vendor relationship (seen from the vendor side), they are unanimous on the following three things:

  1. Keep focussed, make things simple – big organisations are complicated and when internal conflict spills over to the vendor their desire to satisfy amplifies the conflict, making vendor success virtually impossible to achieve. So, simplify without dumbing down, prioritise – be reasonable (but ambitious) and don’t boil the ocean, stretch is good – but don’t break.
  2. Communication – not the contracted, structured, reporting stuff. The sharing type of communication. Tell your vendor what’s going on in the company; how the business is being affected by economic conditions, or competition; changes in management and corporate style; where the business is headed, and how things may shape up in the future. Naturally, you can’t share confidential information but you can speak with a trusted partner, can’t you?
  3. Share something of yourself – what’s your own goal? What are your interests and aspirations? Contracts and statements of work, though very necessary, are like a wall. If the parties stand either side then sharing is like lobbing bricks (or worse) over the top. But if you can open a door and share something then opportunities open up.

It’s in your vendor’s interest to do well for you. Turning in a green scorecard isn’t really it – that’s contract. A good vendor will go beyond the scorecard to find the other stuff that makes you, the vendor manager, shine. There’s nothing dishonest or immoral about this – a good working relationship with trust and understanding works for both parties and incorporates honesty and integrity. I’m not promoting under-the-counter payments or foreign holidays. There’s no place for that today and no need for it.

You’ve probably heard the saying “people buy from people”. I like this phrase because the four words contain so much. The key is relationship. This is supported by the pillars of understanding, trust, confidence and integrity. These stand on the foundation of “people serving people”Relationship Pillars Foundation

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