Choosing your stack and the vendors who provide its components are two of the most crucial business choices you will make. Finding a reliable supplier at a reasonable price is crucial to the success of any business.
Every company has different hiring standards. Here are the criteria you can use to vet your vendors:
No vendor shares customer complaints. Inquire about the vendor’s performance. Find good and bad examples of interactions, then decide what bad means to you.
Can the vendor meet your account's needs? This varies by product and buying cycle. Check their supply chain and process control. This will show how reliable they are.
Long-term planning depends on a vendor's financial stability. What are their options if they run out of money? Will your vendor's layoffs affect service and needs? Could a cash-strapped vendor raise your costs? Determine your recourse if the vendor is acquired and if the risk is acceptable.
The vendor's culture should match yours. If not, you'll have staffing, contract, and other vendor issues. No relationship is perfect, but find vendors who want you both to win.
Communication is key in any relationship, and a vendor's poor support can be maddening. Ensure departmental communication. Support management reveals much about communications. Some vendors prioritize closing the deal. Great vendors solve issues before closing tickets.
What's your company's contract tolerance? A confident vendor offers one-year or month-to-month contracts. Immature or aggressive vendors may seek long-term contracts. Make sure their method fits your company's culture.
These products and services cost money. How well you negotiate with vendors affects costs. Choose the best product and price, then negotiate.
Is the product constantly improved? If innovation stalls or quality drops, the vendor will be replaced quickly. Check their quality history.
Most vendors have supply chains. Evaluate each supply chain part's service level, security, and compliance.
Final Thoughts: Choose Your Vendors Wisely
List vendors in your product stack or distribution chain. Add your own selection criteria. If you don't have a
vendor due diligence and selection process, this will help.