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Vendors Taking Advantage? Vendor Management Issues can Cost Businesses Thousands.

Vendors taking Advantage of you? Why would they? You have this great relationship and have been working together for years, right?

Most businesses at one time or another outsource due to limited internal resources. But what happens when you aren’t in control of your vendors terms, cost of services or even quality of work? How much is that costing your business?

We recently came across a company that used 3 companies for network support. One company was more expensive than the other one and took longer to complete work needed, but the quality that was performed always met their standards. Because they had a limited schedule and were more expensive the company had to at times opt for a couple of other vendors that did not meet the same quality of stands. They did not show up when scheduled, had poor work habits and didn’t complete the job fully so they had to make several trips. Sometimes they would return with a different technician which presented other issues like familiarity with the systems, software, project or service.

In many cases they were also overcharged because they would charge the company for multiple trips or charged to fix other issues while they were there without informing the company first. We have also come across companies like this where they feel they must continue for one reason or another working with certain vendors due to relationships or knowledge of equipment or software or just general familiarity with the business itself.

These vendors know this and unfortunately some of them take advantage of the company’s inability to find someone else. Do you have vendors like this? What have you done if anything to resolve the issue?

Vendors inability to perform to the standards agreed upon in a contract can be costly, involving losses of hundreds of thousands of dollars. So, it’s important that businesses know how to deal with these circumstances.

With a Vendor Management Solution contract experts can negotiate a fixed rate for a particular service. The contract terms must be met ensuring that both parties are aware of what is expected and any variances will be flagged and the vendor will be held accountable for any charges and changes outside of the agreed terms.

 

If you have questions about any of our VMS benefits contact us today at 866-504-4050 or email LIMITLESS at info@limitlesstechnology.com to learn more about our Vendor Management Solutions