Human beings have an innate nature to stay happy and motivated. So is the case with your Vendor Management. They want to feel inspired and motivated in their daily work. That is your organizations biggest opportunity. Organizations should invest some amount of time and effort in creating a good vendor management program whose benefits can be manifold.
Vendor Management Services (VMS) take care of simple to complex processes including hiring, onboarding, processing payments etc. The benefits of a healthy vendor relationship are unexplainable. VMS supports in establishing the economic well-being of the company to streamlining the routine vendor related activities.
However, is just setting up a good VMS enough to keep your Vendor Management happy? Maybe not. Then what is it that can make a difference in your relationship with your vendors. Here are a few tips that can come in handy:
Embrace Risks And Failures
“It is ok to fail sometimes. Do not be scared to take a calculated risk. “It is important that you say this to your vendors. Give them the confidence to play the game of business with some calculated risks. The chances of failures are always there but remember it is good to fail in something then never try something. This freedom and confidence in vendors will help your vendors to build immense trust in you.
Have clear goals
Vendors want that their work should make some real difference to the company’s goals and targets. Make vendors part of your goal setting activity. Involving them will make sure they internalize your objectives and company ethos. That can make a huge difference in the way Vendor Management work and their approach towards your company. Moreover, you may benefit from an outside perspective to your company’s problems and can also take advantage of the collective wisdom of your key vendors.
Create an exciting growth trajectory for vendors
Many times a Vendor Management may join you at a very low level where he is not contributing much to your business turnover. However, it is important to make him feel that the company immensely values his small contribution. In addition, his consistent performance will not just help the organization grow but allow him to expand his business and grow along with the organization.
Extend a helping hand when required
Difficulties, highs, and lows are an integral part of the business. Try to hold hands with your vendors during trying times. There are circumstances, which are out of the control of an individual or a business entity. Things like natural calamities, economic upheaval like recession etc are the times when your relationship will be put to test. Try to support your key vendors during these times. Once they bounce back, they will never think of leaving you. They will be obliged to perform well for you and work like your true partners.
Give them a larger goal to work
Vendors do not just work for payment. They like to work for creating a difference. The partners and Vendor Management love companies that have realistic goals, not just materialistic but social and environmental as well. Have a larger goal to chase and find your vendors getting more motivated to work with you. Believing in the purpose and mission of the organization and aligning with the company’s values are key to vendor motivation.
Getting your vendors motivated requires a deeper and better understanding of them. Emotional intelligence plays a big role here. It may sound difficult but it is not. Developing your emotional intelligence will help you connect with your vendors better and really understand what drives them.
There has to be one team who is completely responsible for managing your vendor programs. Right from understanding the need of such a program, its impact on the daily operations of vendors, its benefits to the business and the associated risks. The team has to be clear in the purpose and objective of the program. Carrying out due diligence, being proactive, manage large vendor base etc are some of the capabilities you should cultivate or look for in your team.
The size of the team depends on the business you run. The team should serve as a liaison between your company departments and the vendors and ensure the smooth running of the show.
Another important aspect is communication. Unambiguous and clear communication is central to any long-term healthy relationship. Expressing concerns, sharing feedback, giving ideas for improvement etc should be encouraged by companies.
Lastly, though it is extremely important to keep your vendors happy. There is a thin line between making happy and becoming complacent. One should not get carried away in the process of keeping the vendors motivated and happy. It is important to have certain clear dos and don’ts in the engagement. The code of business and the processes should be adhered by the Vendor Management. It should be fair and respect the integrity of each party.
Collabera’s Master Vendor Program gives you unlimited possibilities to create successful partnership programmes with your vendors. We automate and streamline important vendor processes and offer robust contingent workforce management strategies.
Right from planning, getting the right vendors on board, managing compliance issues to ensuring proper auditing of performance, we take care of your end-to-end vendor management needs.
We become your strategic partner and help you right from planning, getting the right vendors on board and managing compliance issues to ensuring proper auditing of performance.
Some of our services include reducing the risks associated with co-employment, mitigating liabilities faced by payroll, invoicing, remittance, timesheet and administration thus saving a considerable amount of time and cost.
The program structures a client’s specific requirements and groups the different service providers into one single master vendor relationship framework.
We help our clients streamline their recruitment process by making use of customs processes, latest tools, and advanced control panels. Collabera’s Master Vendor Services can effectively manage a large pool of vendors, reduce vendor switching, administer payroll, and track operations after vendor change.