Submitted by: George Mach, President & CEO, Apex IT Group
Chances are you know the phrase “breaking up is hard to do” all too well. While it’s typically tied to the demise of romantic relationships, it also rings true when you’re trying to part ways with one of your vendors. The decision to terminate a vendor contract is no small feat and is often a process that progresses from “I think we might have a problem” to “Let’s discuss what’s happening” to “What can we do differently to change it” to “Things are continuing to get worse…it’s time to move on.” Despite the difficulty of the decision and break-up process, it’s important to step back and take an honest look at the vendor relationship and answer the question, “Am I better off with this vendor, or without them?”
The first step in cutting ties with one of your vendors is to identify what about the arrangement no longer works for you and your company. Here are three common reasons vendor relationships tend to go bad:
1. It’s a win-lose situation. Sometimes relationships get lopsided and may no longer be equally beneficial to both parties; it’s at this time the situation must be reassessed. In order to keep your relationship going on an even playing field, it’s important to have a regular review of what’s working and what’s not for both parties. After each review, evaluate the highlights of the discussion and determine any changes that need to be made in order to get the relationship back on track.
2. The trust has been broken. It’s no secret the key to any strong relationship is based on the premise of trust and the notion that all those involved will do what they say they’re going to do. When this trust is broken, it can be extremely difficult to build it back up in an attempt to get the relationship back to where it was. Even if apologies are made, you may find yourself questioning the motives of your vendor and revisiting the original breach of trust no matter how hard you try to move on.
3. They have poor business ethics. While your vendor might not technically be part of your company, the reality is they should viewed as an extension of it. If your vendor doesn’t follow the same ethical processes and adhere to similar principles, the effects will ultimately trickle into your business. It’s important your vendors act in an ethical way in all aspects of their operation, from the pricing of their services to the level of transparency they have with their clients to how they treat their customers. If you find your vendor’s code of conduct doesn’t align with yours, chances are you will begin to question how they handle their relationship with your company and, ultimately, second-guess their true intentions.
Have you decided it’s time to cut ties with one of your current vendors? Check out our blog for tips on how you can let them down gently and amicably part ways.
