Vendor Vetting: Things to Consider

Vendor Vetting
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:

  • Customer Satisfaction
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.
 
  • Service levels
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.
 
  • Finances
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.
 
  • Relationships & Culture
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
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.
 
  • Contracts
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.
 
  • Costs
These products and services cost money. How well you negotiate with vendors affects costs. Choose the best product and price, then negotiate.
 
  • Quality
Is the product constantly improved? If innovation stalls or quality drops, the vendor will be replaced quickly. Check their quality history.
 
  • Supply Chain Security
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.

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Partners can acquire the new Specializations by showcasing a combination of product and sales expertise through customer wins and a go-to-market strategy. 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Read More

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