How Small Businesses Can Improve Third Party Vendor Management
While big businesses generally deal with big vendors, small businesses usually have small vendors. In some ways, this is an advantage for a small business: large vendors may insist on unsuitable terms and small vendors can offer more personal service. The disadvantage is that small vendors may not have the supply chain, inventory management and compliance management systems of larger companies. Small vendors may also not be able to integrate their systems with their clients’ systems.
According to Robert Berger of 360factors, Inc. (https://www.360factors.com/blog/third-party-vendor-management-for-small-business/) the key to better client-vendor relationships is feedback. Instead of waiting until a problem occurs, give vendors regular performance reports so they can get positive reinforcement instead of just criticism. The best relationships are when vendors are treated as partners. Working in collaboration, both parties contribute to the other’s success.
If your organization has vendor management issues, a third party can set up a management system to improve service.