Last updated on Jun 17, 2024
- All
- Manufacturing
- Vendor Management
Powered by AI and the LinkedIn community
1
Communicate clearly and frequently
2
Negotiate win-win solutions
3
Escalate appropriately
Be the first to add your personal experience
4
Evaluate and learn
Be the first to add your personal experience
5
Appreciate and reward
Be the first to add your personal experience
6
Here’s what else to consider
Be the first to add your personal experience
Managing vendors is a crucial skill for any business that relies on external suppliers, contractors, or consultants. However, not all vendors are easy to work with. You may encounter vendors who are late, overpriced, unresponsive, or poor quality. How do you deal with these difficult situations without damaging the relationship or compromising your project goals? Here are some tips to help you manage difficult vendors effectively and professionally.
Top experts in this article
Selected by the community from 5 contributions. Learn more
Earn a Community Top Voice badge
Add to collaborative articles to get recognized for your expertise on your profile. Learn more
- Maurizio Mallia Head of Customer Service | CX Leader | NPS/CSAT Enhancement | Complaint Reduction | Contact Center Optimisation for…
4
- Rusty Lincoln, MBA Senior Business Consultant | Spreadsheets are my happy place.
4
-
1
1 Communicate clearly and frequently
Communication is key to any successful vendor relationship. You need to establish clear expectations, deadlines, deliverables, and feedback mechanisms from the start. You also need to communicate regularly and proactively with your vendor, especially if there are any issues or changes. Don't assume that your vendor knows what you want or need, or that they will inform you of any problems or delays. Use multiple channels of communication, such as email, phone, or video calls, and document everything in writing. Be respectful, polite, and constructive in your communication, and avoid blaming or accusing your vendor.
Help others by sharing more (125 characters min.)
- Maurizio Mallia Head of Customer Service | CX Leader | NPS/CSAT Enhancement | Complaint Reduction | Contact Center Optimisation for OKRs | Fintech | FS | BPO | Start-ups
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Dealing with challenging vendors while maintaining relationships:* Open Communication: Address concerns diplomatically. For instance, if a vendor consistently misses deadlines, discuss the issue openly, highlighting the impact, and seek collaborative solutions. * Focus on Solutions: Instead of blaming, emphasise mutual benefit. In the case of quality issues, work together to identify improvement areas and devise actionable steps to rectify them. By fostering open dialogue and a problem-solving approach, difficult situations can be managed without damaging relationships. This collaborative effort often leads to stronger partnerships built on trust and shared goals.
LikeLike
Celebrate
Support
Love
Insightful
Funny
4
-
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
I had a sort of personal experience on this today. I purchased an item for my daughter off facebook marketplace and had to drive up over half an hour to pick up the item. After a thorough inspection of the item I was ready to pay, I asked the seller to let me have their bank account details for an instant transfer, however I met a blocker!The seller said they only accepted cash payments. I pointed out that it wasn’t mentioned or stated on their listing, I would be prepared if so. The seller gave me a look that could kill and then proceeded to tell me it was my fault for not asking for payment method beforehand. My quib here is, shouldn’t it be the responsibility of the vendor to clearly communicate their trading terms? Communication!!!
LikeLike
Celebrate
Support
Love
Insightful
Funny
1
- Di Hamdan Testing Manager (Device/Mobile Testing)ISTQB CTAL- Certified Test Manager | ASTQB Certified Mobile | ASTQB Certified Agile
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
In my experience, I would suggest having clear and frequent communication. As they say, communication is key to any successful relationship. You need to establish clear expectations, deadlines, deliverables, and feedback mechanisms from the beginning.You also need to communicate regularly and proactively with your vendor, especially if there are any issues or changes. Don't assume that your vendor 100% knows what is your expectation. Use multiple channels of communication, such as email, phone, or video calls, and document everything in writing. Be respectful, polite, and constructive in your communication - that would help to build a good relationship with your vendor
LikeLike
Celebrate
Support
Love
Insightful
Funny
1
2 Negotiate win-win solutions
Sometimes, you may need to negotiate with your vendor to resolve a conflict or reach a compromise. For example, you may want to renegotiate the price, scope, or timeline of a project, or request a refund or a discount for a subpar service. When negotiating, you should aim for a win-win outcome, where both parties feel satisfied and valued. To do this, you need to understand your vendor's perspective, interests, and constraints, and express your own clearly and assertively. You also need to be flexible, creative, and willing to make concessions. Avoid ultimatums, threats, or demands that may jeopardize the relationship.
Help others by sharing more (125 characters min.)
- Rusty Lincoln, MBA Senior Business Consultant | Spreadsheets are my happy place.
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Focus on open communication and understanding the vendor's perspective and constraints. Identify common goals and interests to frame discussions positively. Propose solutions that benefit both parties, ensuring their needs are met while also achieving your objectives. Stay professional and respectful, even in challenging situations, to maintain a constructive dialogue. This approach helps in resolving conflicts amicably and strengthens the relationship for future collaboration.
LikeLike
Celebrate
Support
Love
Insightful
Funny
4
- Di Hamdan Testing Manager (Device/Mobile Testing)ISTQB CTAL- Certified Test Manager | ASTQB Certified Mobile | ASTQB Certified Agile
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Focus on finding the solution to the problem and avoid blaming games, try to find a win-win situation. Always maintain a professional demeanor, even when discussions become difficult
LikeLike
Celebrate
Support
Love
Insightful
Funny
3 Escalate appropriately
If communication and negotiation fail to resolve the issue, you may need to escalate the matter to a higher level of authority or a third party. For example, you may need to contact your vendor's manager, supervisor, or owner, or involve a mediator, arbitrator, or lawyer. However, escalation should be a last resort, not a first reaction. You should only escalate if you have exhausted all other options, and if the issue is serious enough to warrant it. You should also inform your vendor of your intention to escalate, and give them a chance to respond or rectify the situation. Escalation can damage the trust and goodwill between you and your vendor, so use it sparingly and wisely.
Help others by sharing more (125 characters min.)
4 Evaluate and learn
After you have resolved the issue with your vendor, you should evaluate the outcome and the process, and learn from the experience. You should review the performance, quality, and value of your vendor, and decide if you want to continue working with them or not. You should also identify what went wrong, what went well, and what can be improved in your vendor management practices. You should share your feedback and lessons learned with your vendor, and ask for theirs as well. This way, you can strengthen the relationship, avoid future problems, and improve your vendor management skills.
Help others by sharing more (125 characters min.)
5 Appreciate and reward
Finally, you should not forget to appreciate and reward your vendor for their good work and cooperation. Even if you have faced some challenges or disagreements, you should acknowledge the positive aspects of the relationship and the value that your vendor provides. You should also express your gratitude and recognition for their efforts and achievements, and offer incentives or bonuses for exceptional performance. Appreciation and reward can foster loyalty, trust, and satisfaction among your vendors, and motivate them to deliver better results and service in the future.
Help others by sharing more (125 characters min.)
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?
Help others by sharing more (125 characters min.)
Vendor Management
Vendor Management
+ Follow
Rate this article
We created this article with the help of AI. What do you think of it?
It’s great It’s not so great
Thanks for your feedback
Your feedback is private. Like or react to bring the conversation to your network.
Tell us more
Tell us why you didn’t like this article.
If you think something in this article goes against our Professional Community Policies, please let us know.
We appreciate you letting us know. Though we’re unable to respond directly, your feedback helps us improve this experience for everyone.
If you think this goes against our Professional Community Policies, please let us know.
More articles on Vendor Management
No more previous content
- You're aiming to cut costs on vendor selection. How can you harness data analytics for maximum savings?
- You're struggling with budget constraints. How do you decide which vendor expenses to reduce?
- You're facing vendor delays with clients. How do you maintain trust and communication during these setbacks? 1 contribution
- You're trying to cut costs with vendors. How can you strengthen those relationships at the same time?
- You're facing delays in vendor deliverables. How can you negotiate compensation or penalties effectively? 3 contributions
- You're facing ambitious delivery timelines from vendors. How do you ensure realistic expectations are met?
No more next content
Explore Other Skills
- Warehouse Operations
- Manufacturing Operations
- Lean Manufacturing
- Plant Operations
- Transportation Management
- Quality Assurance
- Logistics Management
- Quality Management
- Supplier Sourcing
More relevant reading
- Vendor Management How do you communicate project delays to vendors without damaging the relationship?
- Relationship Building You've faced a major misunderstanding with a vendor. How can you rebuild trust and move forward effectively?
- Vendor Relations What do you do if your project is facing conflicts with vendors?
- Vendor Relations How do you manage conflicting vendor requirements?