You're facing a vendor who's not delivering. How can you make them step up their game?

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If you work with external vendors, you know how frustrating it can be when they fail to meet your expectations, deadlines, or quality standards. Whether it's a software developer, a graphic designer, or a caterer, you need them to deliver on their promises and help you achieve your goals. But how can you make them step up their game when they're not delivering? Here are some tips to improve your vendor negotiation skills and get the results you want.

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Jason Neu

Transforming Markets with Premium Hard Surface Solutions | Pioneering Excellence in Product Innovation & Merchandising…

1 Assess the situation

Before you confront your vendor, you need to assess the situation and gather the facts. What exactly is the problem? How does it affect your project, budget, or reputation? How long has it been going on? What are the contractual terms and obligations? What are the possible causes and solutions? Having a clear and objective understanding of the issue will help you communicate your concerns and expectations more effectively and avoid emotional reactions.

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Yared Zewge Melaku

CIPS Certified - Procurement & Supply Chain Professional
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1. **Review Contract Terms:** Examine the terms of the contract to understand the agreed-upon deliverables, timelines, and any penalties for non-compliance. 2. **Communication:** Engage in open and honest communication with the vendor. Seek explanations for delays and discuss potential solutions. 3. **Documentation:** Keep a record of all communications, including emails, messages, and any relevant documentation related to the agreement. 4. **Evaluate Performance:** Assess the vendor's performance against the agreed-upon benchmarks. Identify any areas where they may be falling short.

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2 Communicate clearly and respectfully

Once you have the facts, you need to communicate them to your vendor in a clear and respectful way. Don't accuse, blame, or threaten them, but rather explain the impact of their performance and the consequences of not improving it. Use specific examples, data, and feedback to support your points and show them that you're not being unreasonable or unfair. Also, listen to their side of the story and try to understand their challenges, constraints, or difficulties. This will help you build rapport and trust and show them that you're willing to work with them to find a solution.

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3 Negotiate a plan of action

After you've communicated the problem, you need to negotiate a plan of action with your vendor. This means agreeing on the desired outcomes, the actions and resources needed, the deadlines and milestones, the quality standards and criteria, and the monitoring and reporting methods. You also need to define the incentives and penalties for meeting or missing the targets, such as bonuses, discounts, referrals, or termination. Make sure that the plan is realistic, measurable, and mutually beneficial, and that both parties commit to it in writing.

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Jason Neu

Transforming Markets with Premium Hard Surface Solutions | Pioneering Excellence in Product Innovation & Merchandising Mastery
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Negotiating a plan of action with your vendor goes beyond outlining tasks and deadlines. It's a collaborative process, ensuring shared goals and expectations. It's not just about what needs to be done, but how it's done, the standards upheld, and the means of accountability. It's crafting a roadmap where success is a win-win for both parties. Creating incentives and penalties isn't just about rewards or consequences; it's about fostering accountability and dedication to achieving agreed-upon targets. Writing it down solidifies commitment and provides a reference point for mutual understanding. It's a pact that aligns visions and efforts, ensuring a realistic, measurable, and beneficial outcome for everyone involved.

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4 Monitor and follow up

Once you have a plan of action, you need to monitor and follow up on its implementation and progress. Don't micromanage or nag your vendor, but rather check in regularly and provide constructive feedback and recognition. If there are any issues, delays, or changes, address them promptly and collaboratively and adjust the plan if needed. If there are any disputes or conflicts, resolve them calmly and professionally and seek mediation or arbitration if necessary. If there are any achievements or successes, celebrate them and thank your vendor for their efforts.

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5 Evaluate and learn

Finally, when the project is completed or the contract is over, you need to evaluate and learn from the experience. Review the results and outcomes of the vendor's performance and compare them to the initial expectations and objectives. Identify the strengths and weaknesses, the opportunities and threats, and the lessons learned. Provide honest and constructive feedback to your vendor and ask for their feedback as well. Use the insights and knowledge gained to improve your vendor selection, management, and negotiation skills for future projects.

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6 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?

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You're facing a vendor who's not delivering. How can you make them step up their game?

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1 Assess the situation

2 Communicate clearly and respectfully

3 Negotiate a plan of action

4 Monitor and follow up

5 Evaluate and learn

6 Here’s what else to consider

Vendor Negotiation

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