In an ideal world, you would like to think that the vendors you bring on board when building your business will serve as the machine cogs that you didn’t know you needed. Like pairing a fine wine with a steak filet, you may dream that these vendors will fit seamlessly into your operations.
Unfortunately, it’s unlikely that you’ll find such an ideal fit if you simply pick the first B2B vendor you come across. Just like with employment itself, you should take your time here to ensure that vendors, who will include professionals like your suppliers and accountants, work in line with your vision and operations.
Admittedly, picking vendors can feel like a difficult balance to master, but you can make sure you’re hitting the jackpot with your B2B vendor selection by simply considering the following essentials.
# 1 – Price and Product
While you choose the price tag when bringing a new member of your team on board, vendors set their pricing in advance based on things like the size, duration, and potential of an account. But that doesn’t mean you’re entirely powerless where pricing and product are concerned.
In truth, you simply need to do your market research to get the best deal. This means talking with a wide range of vendors and developing an idea of what each company can do for you, the quality of the products they offer, and the potential returns you stand to see with them onside.
It’s vital to note here that jumping in blindly with the lowest vendor quote is rarely a good idea and could result in lower ROI that sees you spending more in the long run. To avoid that, seek an all-important between cost and value throughout your vendor interactions by taking the time to understand –
- What a vendor is offering within the stated price bracket
- How long they’re offering their services for
- How the quality of their product varies from other vendors
- Etc.
If a vendor is offering a high price across a long relationship with high-quality outcomes, it may well end up having a better ROI, and thus more value, than a low vendor price point that’s offered on a limited contract across lackluster services. Do your calculations properly, and always opt for the vendor that’s offering the best all-round value.
# 2 – Flexibility
Your vendors might operate outside of your company but, to work with you successfully, they’ll need to blend well with your processes. If a vendor is too set in their ways or demands that you use their software and communications avenues, then it’s unlikely they’ll be a good fit.
Instead, you should always look out for flexible, accommodating vendors above all. At the end of the day, they’re offering you a service, and they should make that service accessible to you. This is especially true in terms of the software they’re willing to use. A high-quality vendor will be more than happy to link up with your ap automation software for sending their invoices, receiving payments, and even keeping communications open in the best possible way. Vendors should also be fully flexible around your schedule, ensuring delivery days and times that work with you, rather than against you.
If a vendor resists these basics or demands additional money for, say, sending invoices via requested software, then it’s always a red flag. If this is the case, ask them why there’s a problem, and don’t hesitate to look elsewhere if you don’t receive a satisfactory answer.
# 3 – Collaboration Styles
Proper communication with your vendors can make a huge difference to the success of this relationship overall. Unfortunately, it’s not something you can guarantee just because you’ve signed a contract. You also need to make sure that a potential vendor shares your collaboration style.
As well as considering things like their ability to communicate via your software channels as mentioned above, you can benefit from ensuring that a vendor also prioritizes the collaboration you’re after. For instance, if you’re working with a supplier and expect regular updates on shipments, you should ensure this is something they offer in advance. If you’re working with a delivery vendor, it’s also important to make sure that they’re willing to provide things like delivery update messages to your customers if that’s a promise you make on your end.
A lot of the time, vendors should be willing to communicate in whichever way you request, and this is a sure sign of a relationship that could go far. However, some vendors may lack the resources, software, or willingness to collaborate in a way that works for you. And, if that’s the case, they’re probably not the best option.
# 4 – Industry Experience
Ultimately, even if a vendor feels like the Jack to your Rose in every other way, they may still end up letting you down if they lack the experience required within your specific field. This is especially true in B2B spheres, where your professionalism, and the professionalism of your vendors, can take you from hero to zero in no time.
One way around this is to consider vendor qualifications, including the skill level of employees who may need to understand set software or even legal processes. However, it’s also important to consider industry experience before signing a vendor contract.
After all, even if a team of vendors has broad experience with, say, confidential data handling, they could still leave your information at risk if they lack industry know-how like cookie use or GDPR restrictions. To avoid this, always seek –
- Industry-relevant vendor case studies
- A detailed breakdown of years of experience
- Documented proof of any specific qualifications or licenses
- Etc.
# 5 – Reputation
Second chances shouldn’t compromise your business, and if a vendor has a bad reputation either in your industry or out of it, it may spell trouble. Equally, if you receive a recommendation from a like-minded associate or someone within your industry network, it could be a sign that even a vendor you haven’t heard of could end up offering some value.
The best way to gauge a vendor’s reputation is to simply conduct a quick Google search for reviews of the company in question. This will quickly reveal whether they’ve received negative feedback, and also the nature of those complaints. You’ll also be able to see how the vendor dealt with the issue, or if they responded at all.
Personal recommendations can be even more useful, as they’re tailored to your needs, and may speak more widely of a vendor’s trustworthiness and even their ethics. To gain these personal recommendations, simply ask around. Something as simple as reaching out to your contacts on Linkedin, or paying attention during networking events, could lead you to a dream vendor that you would never have discovered otherwise.
Conclusion
Finding the ideal B2B vendor is never an easy job, yet you’ll soon come to rely on these companies for everything from your product development to your financial management. Those are high-risk areas, and your vendors need to be low-risk options to make them worthwhile.
By considering the essentials outlined in this article, you make it far more likely that a vendor is the ideal operational and financial fit for your team. So, hit the vendor jackpot by bearing this article in mind next time you’re on the hunt.
