You're working with a vendor who has unrealistic expectations. How can you manage them?

It is established that the vendor has unrealistic expectations. In the process to manage, it is necessary to understand the impact of any of these expectations towards my business. A risk analysis may work to categorize the severity of the impact. An alternative way can be considered to minimize the impact. Now this is the time for a meeting with the vendor and work on various solutions to create a win-win situation. If it is inevitable to wok with such vendor, even some disagreement can be agreed in a long term perspective. Simultaneously development of an alternate vendor can be considered.

It’s important to always have an alternative vendor. The tendency is for the vendor to control the conversation. You need to introduce a credible disruptor. It can’t be speculative but something you are willing to follow even if it is not your ideal. If you don’t, and you are called on it then you lose all leverage.

Change vendors. I have to hit a 125 characters I guess but why would vendor have unrealistic expectations? You pay them( not the reverse. Tralalala

The important point here is to measure the gap between expectations from vendor and their ability to fullfill the expectations. In this dynamic scenario, cost competitive environment and certain low volume businesses leads to the undesired end with vendors for future supply. Risk based decisions, monitory support to vendors to fullfill expectations of high risk factors and continuous hunting of alternative vendors are mandatory actions for sustainable business and compliance.

Net New Vendors: In my experience, once a NDA is executed, the discovery stage (i.e. initial due diligence, pre-contract talk) is an excellent and early way to capture alignment and disconnects. It's at this stage, a decision is made whether to pursue the engagement further. Should the business relationship progress to contract discussions; strategy, functional, technology, risk, and performance requirements are examples of key drivers within the negotiation strategy - this is where expectations are legally positioned, documented, and agreed upon. Where appropriate, incentives & penalties should be contemplated in the agreement to ensure contractual commitments are met & to encourage innovation. It is about setting & clarifying expectations

Clear communication plays a vital role in any business. If vendor is not aware or has some unrealistic expectations then same can be cleared with proper communication.

Regular communication is the key to develop good relations. > Keep regular mail follow ups > Engage with them on call as well as chat with them to be more familiar > Understand their overall challenges and situations at their end > Try to be of help by organizing regular Vendor review meetings or share the summary status of the related project/work > A Summary with timelines regarding the requirement date , dispatch date , pickup date , wip dates , mill run dates are really useful and makes the task easier even for the supplier to track.

QBR’s QBR’s QBR’s I can’t stress this enough, have your vendors perform check-ins, review what value they are bringing and ensure they are taking your product ideas into their roadmaps. The vendor works for you!

Frequent communication is vital. Schedule regular check-ins to discuss progress, challenges, and adjustments. Use a combination of emails, calls, and meetings to maintain a transparent flow of information. Share updates on milestones, timelines, and any changes promptly. Encourage the vendor to express concerns or questions. Regular communication builds trust and allows for early identification and resolution of issues, preventing misunderstandings.

As a procurement category manager, I've encountered multiple vendors with unrealistic expectations. To tame these challenges, I like to establish clear expectations from the start, engage in regular check-ins, emphasize data-driven outcomes, address unrealistic expectations promptly, foster trust and transparency, benchmark industry standards, and continuously evaluate my communication strategies. Remember, you're the orchestrator of successful partnerships – master communication to navigate unrealistic expectations and foster growth.

Implement a robust performance monitoring system. Define key performance indicators (KPIs) aligned with project goals. Regularly assess vendor progress against these benchmarks. Track metrics such as deliverable quality, timeliness, and adherence to specifications. Provide constructive feedback based on performance evaluations. If issues arise, address them promptly to avoid escalation. This proactive approach ensures ongoing alignment with expectations and facilitates continuous improvement. Regular performance monitoring contributes to the overall success of the collaboration.

Effectively manage changes by establishing a formal change control process. Clearly communicate the procedure for requesting and approving changes to the vendor. Evaluate the impact on scope, timeline, and resources before approving modifications. Maintain documentation of agreed-upon changes to avoid misunderstandings. Foster collaboration with the vendor to assess feasibility and potential challenges. Regularly review and update the change management process to ensure adaptability. This structured approach enables flexibility while maintaining project integrity and stakeholder alignment.

Resolve conflicts by first understanding the root cause. Encourage open communication, allowing each party to express concerns. Actively listen to their perspectives and seek common ground. Mediate a constructive dialogue to find mutually beneficial solutions. If necessary, involve a neutral third party to facilitate resolution. Establish clear conflict resolution protocols in the vendor agreement. Document agreements reached and implement corrective actions to prevent recurring issues. A collaborative and solution-oriented approach fosters positive relationships and project success.

Tracking a vendor's project is essential for several reasons, ensuring efficiency and success: - Budget: Efficient budget monitoring prevents unexpected costs and maintains financial control. - Retention of internal resources: Close oversight ensures internal teams aren't overextended, maintaining focus on core activities. - Deliver results more quickly: Regular tracking leads to faster issue resolution and project completion. In summary, vigilant vendor management is key to setting realistic expectations and achieving project goals, balancing costs, resources, and timelines for optimal outcomes.

Evaluate project results against predefined objectives and key performance indicators (KPIs). Analyze both quantitative and qualitative data to assess success and areas for improvement. Solicit feedback from stakeholders, including the vendor, to gather diverse perspectives. Identify lessons learned and document best practices for future collaborations. Use the evaluation findings to inform decision-making, refine processes, and enhance future vendor engagements. Continuous evaluation fosters a culture of improvement and ensures optimal outcomes.

Meet them where they are at - remember they are humans, like you, trying to reach a target. This is a confusing environment. Try to tease apart their expectations and transparently share yours, honestly, without negotiation. Sidelining the KPI language and making a commitment to get to somewhere together creates a ton of trust... and that trust generates better outcomes. Treating a vendor like a subordinate is short sighted. As markets become ambiguous, we are increasingly reliant on each other.

Vendors or Supply partners are critical members of Supply Chain and directly influence the performance of Organisation. Its important that there is proper alignment of expectation and SMART objectives between all stakeholders. One of the key aspects would be to agree on specific measurement Matrix for each of the deliverables. Equal emphasis should be on reliability and consistency so that the vendors understand the importance of meeting the commitment. Clear and formal communication involving critical Stakeholders is also important to avoid any expectations gap. Nothing works better than timely communication and collaborative approach to build trust and set right expectations #CSLearnings

Quantify ‘unrealistic’. If the vendor and client have differing points of view, work with the vendor PM to co-create a task schedule, resource loaded, with a critical path. Then analyze and mediate the gaps in expectation. If the vendor PM can’t give you more than a list in Excel then create the schedule and work together. Many times vendor expectations are determined in the sales cycle and based on zero reality.

Communicate regularly and share the deliverables. Plan a phase manner if possible and share with the client. Identify challenges of next steps and let your client know. This shall reduce the chances of escalation if things go in unexpected timelines. Although there is no end to meet expectations as each project brings its own complexity. The journey of deliverables are important which can be used to learn and get prepared for the next project more effectively. That's the basic reason to prefer an experienced vendor.

The multi vendor approach is the surest way of avoiding a death grip on one's business; however, one vendor will always stand out among the rest. Encourage the other vendors to improve by offering challenging business to them. Become a partner in growth instead of a mere customer. That way, loyalty and mutual respect is cultivated.

If you’re engaging vendors that have unrealistic expectations of you, the client, perhaps you’re engaging the wrong vendors. A good vendor should independently validate the brief you’ve given them to ensure they’re clear on what it is they are doing, and what the operational parameters are. A good vendor will also work with you to ensure deadlines are achievable for both parties, and be clear on the ask of you and/or your team. If your vendor isn’t doing this then you’re not dealing with professionals.