Vendor Master Management 7 Tips
Vendor Master Management strategies are what makes it possible for you to create a strong and mutually beneficial relationship with your service providers and suppliers. That’s why it’s completely wrong and unjust to say that vendor management is nothing more than a couple of negotiations aiming to win the lowest price possible for your business. Vendor master management offers so much more if you press the right buttons. Here are some useful tips to make it be a true win-win for you and your suppliers:
1 Information and Priorities
If you want for your vendor master management to be truly successful, then you have to share priorities and information with your vendors, such as new product launches, design changes, business expansion information, relocation changes, and similar.
2 Find a Healthy Balance Between Competition and Commitment
Successful vendor master management asks from you to ensure the unreserved commitment of your vendors. On the other side, you need to take care of your legitimate business interests, among others to look for competitive prices and bids. That’s why finding a healthy balance between both commitment and competition with your vendors is one of the top priorities for your vendor master management strategy.
3 Include Vendor Master Management In Your Business Plans & Strategies
Sometimes, it can be a surprisingly good idea to invite your vendors to take part in your strategic meetings, if their products come with strategic value for your business. With this approach, you can ensure both your vendors’ loyalty and new ideas for your business plans.
4 Build Long Term Partnerships
Vendor master management relies on the long term relationship you build and maintain with your suppliers. That’s why changing your suppliers and vendors all the time, so you can save a dollar here and there, can easily turn out to be a bad business strategy in the long run.
5 Take a Walk in Your Vendor’s Business Shoes
From time to time, you should carefully evaluate your vendor’s position. They also have legitimate business interests you should respect too. Vendor master management also means that you should try to hear and understand the vendor’s side of your company story. This can help to build a fruitful and long-lasting business relationship.
6 Work on a Win-Win Deal
Successful vendor master management strategy asks from you to conduct fair deal negotiations. That’s why you should include only points that can ensure a true win-win scenario for both parties.
7 Don’t forget, You’re Playing in The Same Team
Vendor master management is never only about winning the lowest prices possible for your business. Very often low prices come hand-in-hand with the low quality. Vendor management keeps reminding you about the healthy balance between prices and quality, which works for both parties.