You’re struggling to manage vendors. How can you get them to deliver what you need?

1 Identify your expectations

Before you start working with any vendor, you need to have a clear vision of what you want them to deliver and how you want them to deliver it. This means defining the scope, timeline, budget, quality standards, communication methods, and performance indicators of the project. You also need to communicate these expectations to the vendor in a written contract or agreement that outlines the roles, responsibilities, deliverables, and penalties of both parties. Having a clear and detailed contract will help you avoid misunderstandings, disputes, and delays later on.

2 Build trust and rapport

One of the key factors that influence vendor performance is the quality of the relationship between you and the vendor. A good relationship is based on trust, respect, and mutual understanding. You can build trust and rapport with your vendors by showing interest in their expertise, listening to their feedback, acknowledging their achievements, and addressing their concerns. You can also foster a collaborative and positive culture by involving them in the planning and decision-making process, sharing relevant information, and celebrating milestones and successes.

3 Monitor and manage risks

Even with a clear contract and a good relationship, working with vendors can still involve various risks that can jeopardize the project. These risks can include vendor delays, errors, quality issues, scope creep, cost overruns, or contract breaches. To prevent or mitigate these risks, you need to monitor and manage the vendor performance throughout the project lifecycle. This means setting up regular meetings, reports, and reviews to track the progress, quality, and issues of the vendor deliverables. You also need to have a contingency plan and a dispute resolution process in case something goes wrong.

4 Provide feedback and support

Another way to improve vendor performance is to provide them with constructive feedback and support. Feedback is essential to let the vendor know what they are doing well and what they need to improve. You should give feedback in a timely, specific, and respectful manner, focusing on the facts and the outcomes rather than the personalities and the emotions. Support is also important to help the vendor overcome any challenges or difficulties they may face during the project. You can provide support by offering guidance, resources, training, or assistance as needed.

5 Negotiate and compromise

Sometimes, working with vendors can lead to conflicts or disagreements that require negotiation and compromise. For example, you may have different opinions on the scope, quality, or cost of the deliverables, or you may face unexpected changes or issues that affect the original contract or agreement. In these situations, you need to be flexible and open-minded, and try to find a win-win solution that satisfies both parties. You can negotiate and compromise effectively by focusing on the interests and needs rather than the positions and demands, exploring various options and alternatives, and seeking mutual benefit and value.

6 Recognize and reward

Finally, one of the best ways to motivate and retain your vendors is to recognize and reward their performance and contribution. Recognition and reward can take various forms, such as verbal praise, written testimonials, referrals, bonuses, incentives, or contracts renewal. By recognizing and rewarding your vendors, you can show them that you appreciate their work, value their partnership, and trust their capabilities. You can also encourage them to continue delivering high-quality results and exceeding your expectations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?