Relationship Advice
Strategic Vendor Partnerships Offer Unexpected Value
by Terry Singleton | Published in November 2006 Event Currents
Many of us find ourselves in a situation best described by the phrase, “So many vendors, so little time.” Whether it’s for audio-visual services, entertainment, rental items or professional services, we are all besieged by vendors trying to get our most precious commodity: time.
Consequently, whether you are a producer, planner, sales representative or supplier, the value of strategic vendor partnerships is one that you must not fail to develop, cultivate and grow.
How to do that without spending hours on the process? Having networking alternatives is a good thing. Capitalize on professional organization memberships and ask for referrals from others. Companies that don’t focus on a small number of strategic vendor partners are doomed to spend more time and get less value from their vendors.
One of the powerful effects of strategic vendor partnerships is that engaging in them tends to eliminate the adversarial nature of many customer-vendor relationships. To create a relationship with a vendor that is truly a partnership, it must be a win-win situation for both. From the vendor’s perspective, this is relatively straightforward: The company wants a continuing stream of revenue. As the customer, you should expect that the vendor is not intending to sell you something every time you call and that customer service is its number-one priority.
How do you go about finding the right vendor partners, developing the relationships and keeping them? The sign of really successful vendor relationships is not just that customers get what they want and need but that they also get what they don’t expect.
Among some of the bonus benefits good vendor relationships can deliver are the following:
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Advice. When I was producing an out-of-town job with an unknown audio-visual supplier, I shared the proposed solution with two of my strategic vendor partners. Since it was an entertainment production rider, details were very important. The feedback from both companies put me at ease that the equipment met or exceeded all of the specifications and that the labor charges were reasonable. This advice gave me the confidence I needed to go to contract.
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Time management. Long-term relationships with strategic vendors help me better manage my time in putting together events. Being able to pick up the phone and remind them of a similar job reduces the amount of time spent going over the details, which ultimately saves us money.
- Expertise. Recently our largest client asked us to produce the general session for its annual conference in a long, narrow ballroom. All 2,000 attendees needed to have a clear view of the stage. We requested proposals from our preferred vendor partner and another local vendor for comparative purposes. While both companies were competitive in price, our preferred vendor was able to design the room and equipment to better fit our needs because of its past experience with the group. Not only do long-term relationships provide you with the best solution, but the continuity gives you an edge with your client, resulting in repeat business.
Of course, you have to be cautious about the proverbial placing all your eggs in one basket. We typically maintain a short list of two to three vendors that can provide the same service. While one generally receives more business than the others, our goal is to use several. This strategy minimizes the danger of a preferred supplier not being available.
We work hard to treat our vendors as part of our team, including them in projects early, respecting their opinion and most importantly, paying invoices on time.
How do I determine the ideal number of strategic vendor partners? My response is simple: “As many as I need, and as few as I can get away with.”
About the author: Terry Singleton
Terry Singleton, CSEP, is president of Atlanta-based CCP Events Inc.
Contact: tsingleton@ccpevents.com