What do you do if your career in Vendor Management could benefit from stronger vendor relationships?

Each vendor relation is different. Every one has a defined, albeit different set of motivating factors. There is no one size fits all approach that you can take here. Work closely with the vendors for the initial few weeks and understand what makes them tick. What's their negotiables and non negotiables? How often are they under stress due to poor planning and how do they respond to people in situations of crisis? These all are small cues that you can take to understand the underlying persona of your vendors and then help you carve better relations with them. If they realize that you've actually spent time and energy in first understanding them without pushing forward your agenda, that's half the battle won already.

Assess the Current State: I would start by evaluating the existing relationships with vendors. This involves looking at communication channels, satisfaction levels, performance metrics, and any areas where improvements can be made. Identify Key Vendors: Not all vendors are created equal. I would identify the vendors that are most critical to our operations and focus efforts on building stronger relationships with them.

1)Open Communication 2)Build Trust 3)Understand Their Business 4)Provide Feedback 5)Collaborate 6)Value-Added Services 7)Regular Reviews 8)Negotiate Win-Win Agreements 9)Celebrate Successes 10)Stay Flexible

In any form of business, it's my strong belief that one must over communicate rather than under communicate. This precedent helps remove so many unwarranted situations, that business leaders often find themselves in. Whatever be the mode of communication - mail, call, text, go ahead and do it. Ensure that your message is out there loud and clear for your vendors to hear, process and respond to. It could be with respect to concerns, feedback, improvement areas, appreciation - anything. Ensure that the message gets across. Have a predetermined check-in schedule. Discuss the roadmap and future milestones clearly. This ensures that everyone is on the same page.

Open Communication Channels: Clear and open communication is key to fostering strong relationships. I would initiate regular meetings with key vendors to discuss performance, challenges, and opportunities for improvement. Establish Trust: Trust is the foundation of any successful relationship. I would work on building trust with vendors by delivering on promises, being transparent, and resolving any issues promptly and effectively.

Understand Vendor Needs: It's important to understand the needs and priorities of our vendors. I would take the time to listen to their concerns, understand their business objectives, and find ways to align our goals for mutual benefit. Provide Value: Strong vendor relationships are built on mutual value. I would look for ways to add value to our vendors, whether it's through cost savings, process improvements, or other forms of support. Seek Feedback: Feedback is essential for continuous improvement. I would actively seek feedback from vendors on our performance and ways we can better support them.

Measure Progress: I would establish metrics to track the progress of our vendor relationships, such as satisfaction scores, on-time delivery rates, and cost savings. This allows us to monitor our performance and make adjustments as needed. Celebrate Successes: When milestones are reached or successes are achieved, it's important to celebrate them with our vendors. This helps reinforce positive relationships and encourages continued collaboration.

Confidence builds with credibility. Your vendors are external entities who don't have a window into your work within the organization. They don't carry the same value that your manager or your leadership puts on you, hence it is imperative that you gain their trust and confidence as well. There is no better way to do this than to go out there and showcase your skills. Lead tricky negotiations from the front. Demonstrate your ability to learn and grasp new ideas. Help figure out mutually win-win situations from stalemates. Represent your field of work in external forums, building a SME tag for yourself. Once your vendors well and truly believe in your capability, the relations that they hold with you will flourish beyond your expectations.

There’s an elephant in the room - not all vendors are adequate for every stage of your business. In the case of scaling businesses it is often the case over time vendors may not be able to adjust if they are not scaling at the same pace. This happens a lot in startups where synergies with other emerging companies make sense and is the name of the game. Not everyone makes it. What is a strong vendor relationship today could be holding you back tomorrow. The best procurement managers identify this early and manage the vendor relationship accordingly. Always remember companies are made of people who too have dreams and aspirations. Have compassion and empathy as you exit. Help them by offering referrals that now are a much better fit.