Knowing How Your Vendor Performs

When needing information on vendor management systems, you need to look no further than the services of Zeel Solutions. They can help you with all of your vendor management services and beyond. The following article discusses how to review the performance of your vendors and about ending contracts if needed.

Reviewing Vendor’s Performance

It is always a good idea to review your vendor’s performance on a regular schedule. If you have a service level agreement with the vendor this will help you to assess the relationship with your vendor in the most objective way. Aservice level agreement defines the term servicesthat you require from your vendor. The review process is mainly important as it is going to prevent existing vendors from becoming complacent with you. The following questions will help you to make sure that you are getting the best possible deal out of your vendor:

·         Price: Are you getting the best price from the vendor? Does your vendor offer bulk discounts or other good terms?

·         Quality: Are you satisfied with the quality of your supplies the vendor sends to you?

·         Innovation: Does the vendor regularly inform you of new products and services that may help improve your business?

·         Delivery: Are your vendors sending you your items on time and are they arriving in good condition?

·         Account management: Are you vendors responding quickly to any orders or questions that you place with them?

·         Service level agreements: Are your vendors living up to their end of the agreement?

After the review process of each vendor, you find that your vendor is not living up to a certain aspect of your agreement, the service level agreement will usually provide for compensation. You are also going to want to review your own performance. Failing to pay your vendors on time is not going to encourage them to keep their standards high, so you must make sure that both you and the vendor are working well together.

Ending Vendor Contracts

There are many reasons you may need to terminate a contract with one of your vendors. The vendor may be consistently failing to provide you with services or goods that meet your requirements. You may also find a cheaper or more reliable vendor somewhere else.

Before ending a contract with your vendor, you need to check the contract to see whether there are going to be any penalties for terminating the contract early. When drawing up the contract with the vendor in the first place, you should come up with an exit clause that is going to minimize what you have to pay to the vendor if you want to end your contract with them. There may be penalties if you leave a contract where you will be locked in with that vendor. If the quality and effectiveness of your vendor decreases, your business may very well likely suffer.

Conclusion

When needing vendor management systems help, contact Zeel Solutions to let them show you what they can do for your business. Vendors can help your business out but they must be managed properly.