Published on : 16th June 2023
Want to optimise vendor management for supplier success?
We spoke recently to a hiring manager who was trying to engage us as a new supplier for a niche position they needed to fill quickly. Although his company had some suppliers from the past they had engaged with, there had been several changes in the vendor management team and they had not reviewed their suppliers since before Covid.
In the past, it had taken months to onboard a new supplier but often, when there's a will, there’s a way! With the hiring business in urgent need of the project resources due to unexpected leavers and business-critical deadlines, we had a call set up with procurement and then legal to put in place a new agreement. An agreement that was amiable to all parties was completed within 7 days, so it can be done!
The result being we helped this business during a critical phase and brought in the right capabilities to help them immediately and hopefully in the longer term.
Here are some steps you can take to collaborate efficiently with any vendor management team and create a successful outcome for all.
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Evaluate existing supply channels
Of course, it’s important to make sure, prior to engaging with a new supplier, you and your vendor management or procurement teams have assessed and exhausted all possibilities within your current supply channels.
This will demonstrate your commitment to optimising and valuing your existing relationships whilst providing a benchmark for evaluating potential new partners. It may be in urgent cases this needs to be done concurrently with a new supplier.
Identify business objectives
Clearly define the business outcomes you aim to achieve through the selection and onboarding of a new supplier. By setting well-defined objectives, speed to hire, quality, level of engagement or enhanced service levels, you can guide your internal vendor team to align their efforts with your broader business goals.
Communicate the benefits
As you collaborate with your vendor management team, it is essential to highlight the potential advantages that come with engaging a new supplier. Emphasise the competitive advantage, increased flexibility and speed, and quality of capabilities that can result from diversifying your existing supply chain.
Some suppliers may have become stale or may have become too comfortable with your relationship and aren’t quite as sharp as they were when they were hungry for your business.
Articulating these benefits builds enthusiasm and also secures buy-in from key stakeholders.
Streamline processes
Simplifying and streamlining the onboarding processes will reduce administrative burdens and minimise delays. Ensure to review and optimise your contract negotiation procedures, vendor qualification requirements, and performance evaluation frameworks.
In addition, an MSA (Master Service Agreement) that is fair and reasonable for all parties to sign up and agree on with minimal changes is desirable (as this will save time and money from both sides for legal and compliance).
By making your onboarding process more efficient, you can ensure a swift integration of new suppliers into your operations.
Foster collaboration
Encourage open communication and collaboration between your vendor team and other relevant departments. Establish regular meetings or forums where stakeholders can exchange feedback, address concerns, and share best practices.
When fostering a culture of collaboration, you create an environment where the vendor management team can effectively support the successful engagement of new suppliers.
These experiences serve as a powerful example of how a proactive and agile vendor management approach can overcome challenges associated with onboarding new suppliers.
By implementing these steps you can harness the benefits of a diverse supply chain, drive innovation, and achieve your business objectives.
You never know when you will need their help next so what could you do today to have a better relationship with your vendor management team?
