Vendor Management

Vendor management can make or break your business. But far too many small business owners think that effective vendor management means they must retain control by treating their vendors badly. A good vendor relationship comes about not from making arrogant demands with superior attitude that a business owner is far more important than a lowly vendor. A good working relationship gives benefits for both. Here are some sure-fire methods to maintain good vendor relations.

Treating the vendor company rep or owner with respect will warrant you the same treatment. No one likes to deal with a chronically autocratic, pain-in the-butt twit who thinks he orbits in a more rarefied atmosphere far above any of the sub-par creatures he’s forced deal with, crawling thru the slime way down below. Vendors run businesses that cater to your needs. Sometimes things go amiss. Going ballistic isn’t going to solve the problem of a delayed, lost or erroneous delivery any faster, but adopting a reasonable tone and attitude can greatly enhance your vendor management results.

A vendor operates a business just like you. Become belligerent on the phone and you may find that your delivery may arrive faster this time, but the next could be “unavoidably” delayed, or the vendor has found a more suitable customer to replace you, leaving you hanging out to dry.

There’s little to be gained by screaming at a vendor rep standing in front of your desk. Mistakes happen in orders and delivery all the time. Even those rarefied breathers experience delivery problems with their own product line. Something that they’ll rarely admit.

Some business owners seem to think that maintaining a distant, cold attitude creates more vendor management power than being approachable. It doesn’t and only serves to create ulcers within hapless reps assigned to serve your needs. Lucky them. Rest assured that vendors talk, and if you operate in the autocratic mode, you’ll gain a deserved reputation of being difficult to deal with.

Vendor relationships are developed over time and based on mutual trust and respect. Even large corporations have local offices with which you can develop a relationship. If the branch manager is at all savvy, you can be sure that he’ll do what he can to maintain it.

Don’t forget vendors are in a position to offer you training about the products they represent. Take advantage of as much free training you can get. Try to get a rep to become one of your trusted contacts, thereby assuring you that any problems you develop will be the first to be solved.

But even if you purchase items that need little or no training, vendors and their reps are golden sources of marketing information concerning job opportunities opening up, or new businesses moving into the area. You can learn a lot not only about new opportunities but a lot about your competition, especially from reps who want to stay on your good side. So work to stay on their good side as well. You’ll both benefit.

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