Vendor management services will allow your temp agency to build a relationship with suppliers and service providers that will help to strengthen both businesses. Realize that the vendor is in business to make money too. By negotiating to cut their costs, the quality of their services may suffer or they may simply op out. Part of vendor management is to contribute knowledge or resources that may help to better serve your company. Asking pertinent questions of vendors will help in understanding how their side of the business works and build a better relationship.
Sharing information and priorities
The most important success factor of any business arrangement is to share information and priorities with each another. That does not mean giving service providers user IDs and passwords to your company systems. As it is appropriate, you should provide the necessary information that will allow a vendor to better service your particular needs. This may include several aspects of the business, such as limited forecast information, new product launches, changes in design, and expansion or relocation changes.
One of the goals in vendor management is to gain the commitment of vendors to assist and support the current business operations. This does not mean blindly accepting the prices they provide. You should always get competitive bids for services.
If a vendor supplies a key service, invite that vendor to strategic meetings that involve the product they are currently working with. If they are the experts in that area they can hopefully help give the company a competitive advantage.
The purpose of vendor management services is to seek long-term relationships over short-term gains and marginal cost savings. The benefits of this relationship include trust, preferential treatment and access to insider or expert knowledge. Good vendor management dictates that negotiations are completed in good faith. Look for negotiation points that can help both sides accomplish their goals.
Vendor management is about more than just getting the lowest price. Most often the lowest price also brings with it the lowest quality. Vendor management services will focus on providing quality for the money that is paid for this service. If you are willing to pay more in order to receive better quality, this is a great benefit to your organization.