How do you manage difficult vendors without ruining the relationship? (2024)

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.

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.

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.

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.

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.

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?

Vendor Management

+ Follow

Thanks for your feedback

Your feedback is private. Like or react to bring the conversation to your network.