Creating a vendor relationship that is mutually beneficial to both parties doesn’t stop after choosing a supplier. Managing vendor partnerships requires skillful and strategic communication, in order to define roles, remain accountable and measure performance.

By Chad Altier

Sometimes selecting a vendor or supplier is as simple as asking a friend or trusted partner if there is anyone they would recommend. In other cases, a formal selection process is required. Either way, choosing and managing a vendor is essential to the quality of service your business provides and the success of your franchise system. 

The first step in vendor selection is research. Prior to looking at vendors, it’s crucial to first identify the service or product your franchise needs in order to complete the best work possible at a cost-effective rate. Once determined, research and select organizations that seem to provide the highest quality product or service needed and are available within a particular sector or region easily accessible to the entire franchise system. Assemble a list to compare the vendors.

Our mobile device repair franchise, iDropped, uses a couple of vendors for gadget parts and equipment to ensure we are able to do our job correctly and within the proposed timeframe. Because our business relies heavily on vendors, we find it’s best to arrange a physical meeting or video conference between corporate staff and the top vendors vying for your business before making a decision. If there is little synergy between either party, or disorganization on the side of the vendor, it’s time to cross that potential vendor off the list and move on to other options.

If the meeting goes well and the potential vendors prove to provide a product or service of value to your brand, proceed with additional research by requesting references and permission to contact current clients to ask about the pros and cons of dealing with that vendor. As the vetting process for quality, stability and competitive pricing evolves, take all collected data into consideration and discuss with an internal team to make final decisions.

As one or two standout vendors are selected, keep in mind to never burn a bridge with other suppliers, as their services may become more appealing in the future. Once a vendor decision is made, however, it’s important to stick with it — define roles, remain accountable and measure performance — as successful relationships require commitment, clear communication and agreement on a common goal. To meet the needs of both organizations and maximize the effectiveness of the partnership, management is key. 

Managing vendor partnerships requires skillful and strategic communication. A mutually beneficial relationship is best created by requesting exactly what is desired and addressing any missteps as they occur. Bringing negatives into the light allows them to be dispelled or resolved quickly, rather than letting them stew. If a vendor isn’t meeting expectations, it may be time to consider terminating the contract. If determined cancellation is the best next step, a selection process must be initiated and a transition plan outlined for a smooth adjustment. Consistently requesting feedback from vendors and franchisees throughout the term of the agreement will add value to the partnership and ultimately result in an open, reliable and successful alliance for continued business success.

Chad Altier is CEO and co-founder of iDropped, a mobile device repair company.

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