We would have most likely come across many articles on  Vendor management but very little on Client-Vendor relationship. In this article an attempt has been made to shed light on Vendor-Client  relationship and the advantages of it.

Many companies rely on the Vendor’s support to fulfil their requirement in their day to day business operations. Different Vendors bring in various products or services which might be the order of the day for companies to build their final product. This requires good Vendor management  at the highest order.

Building quality products or services require quality raw materials/services at the right time. Many companies have tight deadlines. Hence their dependence on the Vendors to supply the basic raw materials / services becomes very critical. A strong rapport is the need of the hour.

How can we make sure to achieve this?  Here are few pointers which might help the companies to fine tune their Vendor relationship..

1. Treat your Vendors as partners.

2. Go beyond just a Vendor – Client relationship.

3. Ensure to give a ‘Pat on the back’ for the wonderful support each and every time. Not just once in a while.

4. Never put them down if there is a delay in supplying the necessary material. But make them understand the criticality in a subtle manner.

5. Respect them and they will do wonders

6. Never change an existing Vendor if he is doing a good work even though he may be a bit pricey commercially. Do not induct another Vendor just for the sake of lesser price.

7. Always invite your Vendor for occasions celebrated in your company. Make them feel a part of your company.

8. Never take a Vendor for granted. Make him feel important

9. As the Vendor is an important peg in the wheel of your own business running smoothly , never give them the feeling that you are doing a favour by giving them the business.

These few pointers are good enough to get your day to day operations running smoother. Having said that, it is always good to set a realistic expectation. Make sure that quality products and timeframe is important every time they deal with you.

Always look for value adds; but don’t treat it as a freebie. Try to compensate it in kind or in commercials. Make them feel that the company values their add – on contribution. Treating it as a freebie will send a wrong signal to them which will demotivate and dilute their performance.

We have spoken about how the company should build the relationship with Vendors. At the same time we need to look how the Vendor should complement their Client. A few thoughts:

1. First things first – Never rub the Client on the wrong side if there is a mistake from your side. The best thing to do is to douse the fire and move on. There will be situations wherein the Vendor would not have delivered at the right time or the right quality. It is best to accept the mistake in the right spirit and not repeat the same. Never argue after committing the mistake. This will be a disaster.

2. Always work closely with the Client and keep them posted on the plan. Also if there is a delay in the service; make it a point to communicate the delay. This will help the Client plan their activity accordingly.

3. Try your best to give value adds to the Client. Clients expect that you will go beyond the scope of work decided and provide your add-ins to keep the business running smoothly.

4. Keep the Client updated on relevant new developments in your company. It can be in the form of a news letter or as an email campaign. This will make the Client feel that you are also growing along with them. Never give them wrong information about your company’s development which might lead to an embarrassing confrontation.

5. Never take the Client for granted since he is there with you for many years. Always treat them with the same enthusiasm and respect as you would with a new Client. This will enhance your performance further.

6. Try to be proactive rather than reactive in your service to the Client.

7. Try to understand their business and if you have any ideas which you feel might help them, do discuss it with them. This will augment your reputation.

These pointers if followed diligently will help both the Vendor and the Client to have a strong and respectful relationship for long time.

Smart companies grow well on the support of solid Client-Vendor relations. It is the foundation of success.

By – Mahesh P.K

         Director

         Aavishkaar Consulting