You’re worried about vendor problems. How can you spot them before they happen?

Vendor problems can be costly, stressful, and damaging to your reputation. Whether it's a delay, a defect, or a dispute, you don't want to deal with the consequences of a vendor's poor performance or miscommunication. But how can you spot the signs of potential vendor problems before they escalate into major issues? Here are some tips to help you monitor and manage your vendor relations effectively.

1 Assess your expectations

The first step to avoid vendor problems is to make sure you and your vendor are on the same page about the scope, quality, and timeline of the project or service. You need to have a clear and detailed contract that outlines the deliverables, deadlines, payments, and penalties. You also need to communicate your expectations regularly and clearly, and provide feedback and guidance when needed. Don't assume that your vendor knows what you want or need, or that they will follow through without reminders or supervision.

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John H. Paz

Govt. Cybersecurity Program Manager | Cybersecurity Consultant | CCIS-Certified (Cyber Insurance) | PMP | HR Management (Strayer University) | US Air Force Veteran.
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Ensuring that the vendor is on the same page again is correct. The only way you can do this is to meet with them and communicate as much as you can about the project with them to be sure they understand the expectations that you have and the expectations that your customer has.

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Hitendrasinh Parmar

Procurement and Contracts at Reliance Industries || Ex - GACL
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1) Monitor Key Metrics: Track vendor performance metrics such as on-time delivery, quality, and responsiveness to identify potential issues early. 2) Conduct Regular Audits: Perform periodic audits of vendor operations to ensure compliance with contractual agreements and quality standards. 3) Establish Communication Channels: Maintain open communication channels with vendors to address any concerns or potential issues proactively. 4) Implement Risk Management Strategies: Develop risk management plans to mitigate potential vendor-related risks, such as supply chain disruptions or quality issues.

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2 Track your progress

The second step to avoid vendor problems is to track your progress and performance against the agreed-upon goals and standards. You need to have a system or tool that allows you to monitor the status, quality, and cost of the project or service. You also need to have regular check-ins and reports with your vendor to review the progress and address any issues or concerns. Don't wait until the end of the project or service to find out that your vendor has fallen behind, overcharged, or underdelivered.

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John H. Paz

Govt. Cybersecurity Program Manager | Cybersecurity Consultant | CCIS-Certified (Cyber Insurance) | PMP | HR Management (Strayer University) | US Air Force Veteran.
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Daily standup are a thing you can have that can take one minute or 20 minutes doesn’t matter. To meet with the vendor daily has never too much.

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3 Manage your risks

The third step to avoid vendor problems is to manage your risks and contingencies. You need to have a plan or policy that covers how to handle any changes, delays, errors, or disputes that may arise during the project or service. You also need to have a backup or alternative vendor in case your primary vendor fails or quits. Don't rely on your vendor's promises or goodwill, or hope that nothing will go wrong. Be prepared and proactive to deal with any challenges or surprises.

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John H. Paz

Govt. Cybersecurity Program Manager | Cybersecurity Consultant | CCIS-Certified (Cyber Insurance) | PMP | HR Management (Strayer University) | US Air Force Veteran.
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First of managing your risks is to know your risks. Always do a risk assessment at the beginning of every project. This will ensure that you have the risk identify then you can track and manage them as the project progresses.

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4 Build your relationship

The fourth step to avoid vendor problems is to build your relationship and trust with your vendor. You need to treat your vendor as a partner, not an adversary, and respect their expertise, experience, and perspective. You also need to show your appreciation, recognition, and support for their work and efforts. Don't take your vendor for granted, or criticize, blame, or threaten them. Be respectful, collaborative, and constructive to foster a positive and productive vendor relationship.

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John H. Paz

Govt. Cybersecurity Program Manager | Cybersecurity Consultant | CCIS-Certified (Cyber Insurance) | PMP | HR Management (Strayer University) | US Air Force Veteran.
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Always build your relationships with your vendors meet with them even if they don’t have to deliver anything. Just communicate and talk.

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5 Learn from your experience

The fifth step to avoid vendor problems is to learn from your experience and improve your vendor relations. You need to evaluate your vendor's performance and satisfaction at the end of the project or service, and provide honest and constructive feedback. You also need to identify your strengths and weaknesses, and implement any changes or improvements for future projects or services. Don't repeat your mistakes, or ignore your opportunities. Be open, flexible, and adaptable to enhance your vendor relations skills.

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John H. Paz

Govt. Cybersecurity Program Manager | Cybersecurity Consultant | CCIS-Certified (Cyber Insurance) | PMP | HR Management (Strayer University) | US Air Force Veteran.
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Always jot down issues and do a lesson learned. At the end of every project you should do a lesson learned. This will help you communicate everything that you feel could be improved.

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Nirav Modha

Commercial Strategies - FLUOR.
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Lessons learnt during execution not only helps client to improve processes in future but it can also help improve processes of your vendors. For example it may happen that you notice that sub vendors were majorly reaponsible for the deliverables. This feedback could help your vendors improve on their sub vendor developement procedures and take necessary measures on it

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Naresh Gupta

Operations Head - North at Speciality Value Lighting and Design Pvt. Ltd
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From my prospective the best way to deal with the vendor problem is to build your relationship with them. Make sure of him that you are taking care of them and they will grow with relationship with you.

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You’re worried about vendor problems. How can you spot them before they happen?

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1 Assess your expectations

2 Track your progress

3 Manage your risks

4 Build your relationship

5 Learn from your experience

6 Here’s what else to consider

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