Ok so there's a lot of talk about Vendor Management and its benefits and how it can be implemented, etc. So when looking for vendors to incorporate in your pool of strategic or short-term vendors:
- Do interview more than one and fewer than 10 vendors in a particular area of need
- Don't single-source just cause its easier, faster, or because it seems like a good deal
- Do ask about their expertise, experience, team, clients, case studies.
- Don't just look at the hourly rate or project cost, also understand "total" cost of involvement/deliverables
- Do ask how the company will provide continous innovation and ideas to help save you money long-term, not just one-time
- Don't ask them how they perform when compared to their nearest competitor. Do you really think you are going to get an honest answer?
- Do share an overall range of budget tha want to be in
- Don't tell them your exact budget figures
- Do ask about performance measurement, metrics, reporting, and all things that are done post-project
- Don't threaten or bribe them with future business to get a short-term unreasonable pricing
Successful Vendor Management means open communication, ongoing dialog, sharing challenges and needs, and making sure that you aren't pushing a vendor for ongoing unreasonable reduced pricing. After all, putting a supplier out of business is hardly going to help you!