6 Rules of Successful Vendor Management

In one of our recent blogs, we covered our top tips for vendor negotiation, and in this blog, we’re taking the topic a bit further. Once you have a set list of vendors you work with on a regular basis, it’s important to continue to manage these relationships to keep your supply streams strong and your costs as low as possible. Today we’re covering our top vendor management tips to ensure that once you’ve successfully negotiated a good vendor contract, it stays that way.

Top Vendor Management Tips

1. Build Partnerships – It’s important to think of your vendors as your teammates. The closer you are, the more likely you are to get special offers, first right of refusal on unique products, and the best customer service. You should treat your vendors as you would a close customer or friend – show them appreciation, follow through with plans, and work to make it a successful relationship.

2. Open Lines of Communication – Part of building a strong relationship is having open lines of communication between you and your vendors. Make sure you have the correct means to get ahold of them and that they can also get in touch with you when need be. You’re more likely to maintain a good relationship and benefit from this relationship if you can be open and honest with your vendors. 

3. Be Flexible – As with any relationship, it’s important to realize that sometimes things come up and your vendors might make mistakes, miss a deadline, or mess up your order. While these things are stressful and overall annoying, it pays to be flexible and understanding when the occasional error pops up. Your ability to work through these minor issues with your suppliers will help you successfully navigate the vendor management side of your business. 

4. Be Open to Advice – Your suppliers and vendors have a lot of experience across many sectors and businesses. You might be surprised to find they have great insight and can help you make good decisions about new product lines, market insights, and ways to cost-save. By being open to some of their advice, you might find that you can make better decisions for your business, all while supporting your relationships. 

5. Take a Step Back – As with any business relationship, it’s important to take a step back every once in a while to monitor whether the relationship is still working for you and your business. If you’ve tried all of these vendor management tips and you’re still struggling to have a productive and cost-effective working relationship, it might be time to find another supplier. 

6. Ask for Help – Could your business use help in the vendor management department? It’s okay to ask for help! Vendor management is one of the most important aspects of running the operation for many small businesses. If you find yourself struggling to maintain these relationships and find cost-effective vendors, don’t be afraid to ask for help from the professionals!

Could your business benefit from vendor management guidance? Tally Services is an accounting and bookkeeping firm in Fort Collins, Colorado. We’re here to help businesses of all sizes make the most of your vendor management practices and organize your books. Contact us today to learn more about our services and how we can help your business streamline practices and grow.