What are vendor-client partnerships? In my last blog, I talked about the importance of managing strategic vendors along with some tips and how to’s. This month, I’d like to talk about “vendor-client partnerships”, how it differs from a vendor-client relationship and some advice for a successful partnership.
Typically, in any partnership, both parties have a common goal that they respectfully work towards. To have a successful vendor-client partnership, make sure you both agree to these major factors: open dialogue, constant communication, transparency, collaboration, and mutual respect. Listening to each others opinion, compromising and reaching a conclusion that both parties agree to is key to a profitable partnership. Remember, all partnerships can be difficult at first until you get to know and trust each other. Perseverance and patience will help you to develop and maintain a strong partnership!
Vendor-Client Relationship vs Partnership
So what’s the difference between a vendor-client relationship vs a vendor-client partnership? Vendor -client relationships are smaller valued contracts where, most often, the line of business will manage. A vendor-client partnership however, is a much larger valued contract usually overseen by a vendor manager or a senior leader of the organization. An example would be a managed services contract, commonly referred to as an outsourcing arrangement. A contract whereby the vendor provides services/products that are critical to your business or of very large value.
Benefits of Vendor-Client Partnership
After contract execution, your partnership will begin to grow allowing both of you to find out more about each other. Implementing a risk mitigation plan, ongoing performance discussions and ensuring governance compliance will reduce your organization’s risk. Partnering with a vendor that is the right cultural fit for your organization is as important if not more important, than the price. Through this partnership, you will look for things like innovation, cost savings and continuous improvement. Demonstrating positive results will increase productivity on both sides and add enormous value to your business!
I hope you found this article helpful! Contact me for a complimentary 15 minute consultation regarding this article and stay tuned for the next topic by Procurement Management Services Inc.
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