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The perfect partnership: Tips for managing third-party vendors

By using these tips and communicating openly with your vendors, you can make this management process easier and more effective.

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Image: StackSocial

Some people feel like they are just born to be entrepreneurs. The thrill of taking a new business venture and making it successful is second to none. When trying to take your business from point A to point B, you will encounter a number of hurdles. In some instances, the only way to get through these challenges is by working with a third party.

The more vendors you use, the harder it will be to manage them all to ensure everything is running smoothly. Tools like third party compliance software CENTRL can help you monitor each of your vendors to ensure they pose no risk to your organization. 

Closely monitoring the shared infrastructure with vendors is a great way to stay ahead of problems and potential supply shortages. Are you looking for ways to make managing third-party vendors more effective? If so, check out the useful information below.

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Work On Building Long-Term Partnerships

More than 56% of businesses in the United States outsource certain tasks to third-party vendors. Finding the right vendors to meet your company’s needs is more challenging than you may first anticipate. 

The first thing you need to do to make vendor management easier is to choose the right companies to work with. Don’t make the mistake of settling for the first vendor you find. Take your time and select a handful of vendors to consider, and do some research to narrow it down to the right one. 

Look for third-party vendors that have a proven track record and a great reputation. Checking out the reviews a vendor has online can tell you all you need to know about how well they have performed for other clients. While finding this information will take time, it is worth the effort considering the fact that you will be sure you’ve made an educated hire in the end.

Be Open About Your Goals

As you start to add vendors to your roster, you need to work on clearly outlining your expectations and goals. The more a vendor knows about what your company hopes to achieve by hiring them, the easier it will be for them to deliver. 

For instance, if you are using a third party to supply direct-to-consumer products, you need to make sure they are passionate about quality control and on-time deliveries.

Taking the time to closely monitor how well a vendor is delivering on the promises they have made is also important. If you see that a particular vendor is consistently underperforming, you have to take action. Addressing issues early is the best way to avoid long-term damage to both your reputation and your bottom line.

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Make Sure You Are Getting the Best Deal

Saving money is something most business owners are extremely passionate about. If you want to avoid overpaying for the outsourced help your company needs, then you have to routinely shop around to make sure the rate is still fair. 

As you begin to compare other vendors, be sure the competitor in question is offering equal value. By price shopping every couple of months, you can rest assured you are getting the best possible deal.

Secure Shared Infrastructure

Most companies share various parts of their tech infrastructure with third-party vendors. This is usually done to give vendors access to inventory, shipping manifests and other pertinent information. You need to make sure the tech infrastructure you share with vendors is completely secure. 

Run risk management assessments regularly on the infrastructure a vendor has in place to ensure you always stay one step ahead of any potential problems.

As you can see, managing third-party vendors can be challenging. By using these tips and communicating openly with your vendors, you can make this management process easier and more effective. 

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