How to Manage Vendors: Getting the Best Results

As your projects get bigger, there will come a time when you need to know how to manage vendors, to get the best results from them.

It can be tempting to see the relationship as competitive: one of you must lose, for the either to win. Nothing can be further from the truth.

So, in this video, I will discuss how the best way of managing vendors is with a collaborative approach.

This video started with a question:

One of the biggest challenges I face at work is managing timelines when working with one or multiple vendors. Are there best practices for managing timelines while maintaining positive vendor relationships?

But I decided to tackle the bigger question of how to manage vendors.

It's all about the relationship.
If you start adversarially, you will find yourself in an adversarial relationship throughout. Particularly with a contract that focuses on penalties.
If, on the other hand, you start collaboratively, you act that way throughout, and you reward collaborative working... Then you are most likely to have a collaborative relationship that delivers to time.

I like a very simple project philosophy…
'I don't care about the fault: I do care about the issue'
That is to say, tell me as soon as there is a problem. So we can all work on it together. Don't try to blame someone else. And don't worry about me blaming you.

Whose fault it is, won't get it fixed
Surfacing the problem as early as possible, and working on it together will.
Set incentives so that everyone - all vendors and team members - share equally in success. Make it generous. And then everyone will recognize their best play is to help each other and not start throwing blame around.

As Louis Darga (Dustin Hoffman's character) says in the film Papillon:
'Blame is for god and small children.'
On my projects, I know you're not one of those, and I don't expect you to act like the other.

#ProjectManagement #ProcurementManagement #VendorManagement

[BagusSetyawan]

Thanks for your tutorial, which is my project currently has a lot of issue for fabrication commitment

[EvannaMiss]

I just found out about your YouTube channel
And u are amazing source to answer all my doubts in project management
Before Covid 19 lockdown, I was managing multiple projects already
Burnt out and stressed up
During lockdown, had more time to view your YouTube
Your short video in YouTube gave great tips for me to deal with my anxiety in project management
M going through your more comprehensive online courses in your website

[wjhfernando]

I really liked your explanation and the way you explain and the time you allocate to it

[bantywhatsnew]

Dear Sir, I am a Project Vendor coordinator thanks for the video please make more video about Vendor management

[annapasierb]

Great stuff! Thank you very much for sharing!

[Jonathanx]

Yes lets all sit by the campfire and sing Kumbayaa