Effective Vendor Communication Strategies by Brad Cummings

1. Improving Vendor Communication with Brad Cummings December 2016

2. Improving Vendor CommunicationAgenda Introduction Communication in Vendor Management Foundation of Effective Relationship Management Creating a Paradigm Shift Case Study Questions

3. Communication in Vendor Management Start from the beginning • Introduce yourself • Make yourself memorable…in a good way • Explain your goals • Be Consistent • Keep everything in writing • Track Progress • Train vendors to meet your needs • Avoid Pitfalls

4. INTRODUCE YOURSELF

5. INTRODUCE YOURSELF Always formally introduce yourself at the beginning of a new relationship with a vendor. View yourself as team members – working together to achieve a common goal

6. INTRODUCE YOURSELF Make yourself memorable in a good way • Be positive: Can-do people and genuinely optimistic people stay in your mind. Find your way of being positive and make it a habit. • Be yourself…..your best self (spell check, be prepared, know your audience) • People notice things that are different, unique, out of the ordinary.

7. EXPLAIN YOUR GOALS

8. EXPLAIN YOUR GOALS It's critical at the start of any vendor relationship to communicate your goals, vision, and your expectations. When a vendor understands how important customer service is to you, for example, they will be encouraged to work harder in that area. Knowing your goals will help them make the best decisions in your favor.

9. EXPLAIN YOUR GOALS A vendor who “gets” your needs is of far greater value than one who just goes through the motions of filling orders. Take the time to communicate your short-term goals and how the vendor can assist you in meeting each goal. Invite their suggestions on the role they can play in achieving these goals. A trusted vendor will likely have unique insights into the industry and offer helpful feedback you won’t find anywhere else.

10. EXPLAIN YOUR GOALS Purchasing Tools to Help: • Request for Information • Request for Proposals • Approved Vendor Lists • Better structured Scopes of Work

11. BE CONSISTENT

12. BE CONSISTENT In most cases, the relationship works more efficiently when the vendor has a single point of contact within your agency. Assign a dedicated contract manager to keep track of each vendor and be responsible for ongoing communications (phone, email, site visits).

13. BE CONSISTENT Contract manager duties: • The contract manager should check in with frequent phone calls and site visits to solicit feedback from the vendor. • Remember: phone calls are more personal than e-mails and may further to bolster your confidence in the vendor and let them know that they are an important part of the team. • This person should respond to any vendor questions and concerns promptly and make sure to keep the lines of communication flowing. 

14. BE CONSISTENT A strong relationship works both ways. When you understand how a vendor operates, the process generally runs smoother. Be sure you fully understand the payment terms of your contract, the scope of work, as well as their preferred channels and time-frame for orders and deliveries. When able - adjust your orders to meet these preferences and give them as much lead time on orders as possible.

15. KEEP EVERYTHING IN WRITING

16. KEEP EVERYTHING IN WRITING When establishing a vendor relationship make sure to put everything in writing. Follow up all verbal communications and requests with e-mails.

17. TRACK PROGRESS

18. TRACK PROGRESS Schedule periodic and detailed progress reports from the vendor. These reports will give you a clear insight to your contract, bring to light any glitches or problems early on, and allow you to resolve any issues before they become big problems.

19. TRACK PROGRESS Purchasing tools: • Require progress reports in the scope of work – monthly, quarterly, project based, etc. • Make payment based on reported milestones

20. TRAIN VENDORS TO MEET YOUR NEEDS

21. TRAIN VENDORS TO MEET YOUR NEEDS It's important to respect your vendors' time and resources. Don't assume that vendors know your unique needs. Have everything laid out in the scope of work in your solicitation/contract

22. TRAIN VENDORS TO MEET YOUR NEEDS Purchasing Tools • Contract Expiration Notices • Better drafted scopes of work

23. AVOIDING PITFALLS

24. AVOIDING PITFALLS Common Pitfalls • Making Assumptions • Being Inconsistent • Providing Misleading Information • Playing the blame game

25. AVOIDING PITFALLS:Making Assumptions Making assumptions about communication is a major pitfall. Both vendors and retailers expect open communication lines when it comes to resolving issues, relationship transitions, hiccups in the budgeting process, and absolute honesty regarding implementation issues.

26. AVOIDING PITFALLS:The Blame Game It's inevitable that mistakes will happen that may even result in missed deadlines, incorrect amounts, etc. Don't overreact or jump to conclusions. State the problem without assigning blame and trust that it will be corrected

27. Foundation of Effective Relationship Management and Communication

28. Foundation of Effective Relationship Management and Communication Fully executed, comprehensive supplier agreement Effective Supplier Management Program Skilled Relationship Managers Ongoing Communication

29. Fully executed, comprehensive supplier agreement Aligned objectives Clearly defined scope of work Measurable service expectations

30. Effective Supplier Management Program Clearly defined measures Documented method of measurement Weighted individual measures Link to compensation

31. Skilled Relationship/Contract Managers Managers of relationships, not functions Credible subject matter experts Masters of communication Solution driven, not fault reactionary Integral, honest, and appropriately biased.

32. Effective and Ongoing Communication Monthly or Quarterly communication Advance update on any internal changes Build a two-way street

33. Paradigm Shift Attributes of a typical agency-vendor relationship “This is about getting them to meet our needs” When things go wrong, assign blame and then apply contract penalties Negotiations are adversarial Parties are surprised and learns of decisions after they have been made Attributes of a strategic agency-vendor relationship “This is about meeting both needs in a sustainable manner” When things go wrong diagnose joint contributions and work to avoid repetition Negotiations focus on problem-solving Surprises are rare, planning is highly integrated, and communication is frequent/robust

34. Characteristics of A good Vendor Relationship High degree of trust Robust and efficient communication Collaborative and creative problem solving High degree of mutual understanding Conflicts and tension surface early Disagreements are resolved through mutual persuasion No blame game

35. Good Relationships Create Value Reduced monitoring Reduced transaction costs Fewer damaging or costly surprises Problems are spotted early and resolved effectively

36. Case Study The next screen contains a case study. Pay particular attention to the interaction between the two. We will discuss the methods we learned here today and compare it to the case study.

37. ANY QUESTIONS? Thank you for coming to Improving Vendor Communication.