Top 5 Issues Experienced with Vendors and How I’ve Solved Them

I have been in the mortgage industry for over 17 years, and throughout my career I have been in the capacity to work with vendors of all types. As to be expected, challenges will always arise; however, for the client/vendor relationship to function properly both parties must be willing to be collaborate, especially when issues present themselves. This translates across all business lines, and why I have outlined the top 5 issues I have experienced with vendors and the measures I have taken to resolve them.

• Missed turn times: This is quite a common issue that occurs in the client/vendor relationship. When I see this challenge develop into a trend, I first ensure that I bring it to the vendors’ attention. It is important that a professional relationship has already been established, and this allows for the tough conversations such as missed SLA’s become easier for both parties. I have found that vendors are much more open to share the challenges they may be facing which are causing the failing turn times because we collectively took the time to build a rapport. Once the open discussion has been had, the problem solving can begin. It is best that this be a collaborative effort between client and vendor, and realistic expectations are set to get the vendor’s performance back on track.

• Failing Quality Metrics: Again, communication is key. If a vendor’s scorecard starts presenting with unacceptable quality metrics, I initiate discussions with them immediately to find out why. Are there systemic, people, or training issues? If there are training issues depending on the function the vendor is performing, I will offer to provide additional support to the vendor in the form of training materials, screen shares while the process is being completed, and possibly support the vendor while reviewing a certain number of their files prior to delivery. We will then set-up follow-up discussions and a timeline for when their quality scores will move back to acceptable levels.

• Unresponsiveness: This one is rare, but it does and can occur. The key to correcting this challenge is to establish a cadence with the vendor. This should include monthly calls and scorecards, escalation contact lists from both the vendor and the client, and in a new relationship, a weekly touchpoint. Taking these steps and setting expectations at the beginning of the business relationship will guarantee a strong working liaison between both parties.

• Poor Service to End-Customer: At times, a vendor’s actions or inaction may result in a poor experience for the end-customer. When this occurs, I will bring the escalation to the vendor and allow them to respond with their side of the story. Once provided, I will work with the vendor on a viable solution to make the customer whole, depending on what the issue was. I would then request that the vendor provide a detailed response on how they will ensure that this problem will not arise again in the future. In my experience, this strategy of partnering with the vendor during problem-solving strengthens the relationship overall, while also repairing any damage on the transaction in question.

• Failing to Scale: Our industry is certainly a volatile one, and while understanding this fact, we all must work to ensure we can scale up or down quickly to meet business needs. At times, especially during boom phases, vendors have missed the mark by failing to scale appropriately to successfully handle increasing volumes. To avoid this, clients must be as proactive as possible in communicating anticipated spikes in volumes to the vendor. The lines of communication must be open for this approach to work, and it also applies equally when clients project volumes declining. Communicating honestly and timely will allow the vendor to make the necessary changes on their end to ensure they meet your expectations.

The client/vendor relationship can be an extremely rewarding one for both parties as long as it is managed appropriately. I have discovered that it is best to view the relationship as a partnership; this ensures both parties have the same expectations and understanding, and it makes any potential escalations easier to review and resolve together. Teamwork makes the dream work!