As your business grows, increased reliance on 3rd party vendors is not unusual. However, forming new relationships and managing existing ones can become a strain on resources. You may find that some employees dedicate a significant amount of time to monitoring, ordering, tracking and allocating the supplies needed to keep your business productive.
Maintaining healthy and cooperative relationships with IT vendors is essential. A large percentage of downtime in any business is directly attributed to breakdowns in communication or trust with vendors. When all the responsibilities associated with these processes begin to outpace the resources available, it is time to seek better solutions.
Outsourced Vendor Management
There are numerous benefits to outsourcing vendor management. It may seem like tasking existing employees with maintaining these relationships is cost-effective. The reality is that your business is losing out because of reduced productivity. When you trust vendor management to a dedicated partner, your people are freed up to concentrate on helping you grow the business.
One of the most important roles of a vendor manager is negotiation. Getting the most from suppliers involves regularly revisiting issues such as pricing, guarantees, delivery timeframes, disaster recovery and much more. Essentially, if one or both parties are not committed to a mutually beneficial relationship, nobody wins in the end.
IT Inventory Management
Of course, inventory management is the most important aspect of dealing with vendors. If your business runs out of printer ink, delays in interdepartmental and customer communications can cause unnecessary delays. Running out of any kind of essential supply is a detriment to productivity. For an inexperienced employee, juggling these responsibilities with a day-to-day role is often too much to handle.
By outsourcing, you have the opportunity to grow those employees in ways that are more beneficial to the business. An experienced vendor manager will track current supplies and reorder as necessary – ensuring that delivery timeframes are taken into consideration. Maintaining stock levels within the parameters of your budget is an essential skill in this role.
New Vendor Relationships
Establishing relationships with new vendors involves more than a simple phone call. It is important to remember that 3rd party suppliers and partners are also running a business. Both parties need to agree on terms that are mutually beneficial. Price negotiations are viable with some vendors, whereas others will not have room for movement. There are also contractual agreements to consider in any business arrangement.
All the logistics involved in new vendor requisition can become overwhelming for employees who are outside of their comfort zone. Businesses without the proper resources to manage these relationships can lose out in several ways. There is a risk of paying over the norm for supplies, dealing with delayed or missing deliveries or getting tied into a contract that benefits the vendor but not your business.
Established Vendor Relationships
There are two ways that a vendor manager can help with respect to established relationships. While negotiating with current partners is important, an outsourced company can also bring their own working relationships to the table. When an industry draws from the same pool of suppliers, associated businesses will benefit from working with a vendor manager who has already established trust and cooperation with those suppliers.
At ClubDrive, we can introduce your business to the vendors we work with in your industry. This allows our team to facilitate benefits that would take months or years to establish otherwise. From a budgeting and productivity perspective, this means your business will receive a boost that allows for faster growth.
To discover the possible rewards of outsourcing your vendor management, reach out to ClubDrive for a consultation with one of our specialists today.