We’ve all heard the expression “time is money”. But you know what else is money? Fuss. Hassle. Tedious mind-numbing details. Yep, we’re referring to vendor agreements.
Getting the best price for products and services from vendors is a massive headache, let’s not mince words. It can take several man-hours to hammer out all the details in order to get one quote from a vendor; the idea of getting three more quotes from competitive vendors can seem daunting. It’s tempting to just settle for the first quote and cut your losses.
However, what you may not realize is that the losses, in fact, are staggering: businesses are regularly shelling out
In today’s economy, when resources are stretched thin by hiring freezes and budget cuts, supply chains are being scrutinized and risks are higher than ever. Effective vendor management can free up some space in the budget and streamline risk management. The rub is that it is a time-consuming and complex process that many businesses don’t feel equipped to tackle.
That’s where Managed Services Group comes in with Vendor Management.
Outsourcing your vendor management is one of the smartest moves you can make for your business; here are some reasons why.
Buying goods and services for your business, whether it’s office supplies or complex specialized services, requires contracts. Contracts are a marathon of storing information, organizing it, negotiating terms, renewing agreements, and terminating agreements with the various vendors and suppliers. They require lots of back-and-forth communication, time spent on the phone and exchanging emails as well as face-to-face meetings. Getting out of a contract in order to negotiate and get into another is a headache.
Whoever is responsible for vendor relations in your company is probably pouring blood, sweat and tears (as well as man-hours) into negotiating vendor contracts, paying suppliers, managing vendor relationships, navigating supplier risk and storing all the contracts and paperwork for the various agreements in place. That’s a lot to juggle. And yet, reaching out to vendors to renegotiate payment terms or contract duration can pay off tenfold in savings.
Supply Chain Risk
Since the arrival of the virus-which-shall-not-be-named, businesses are reassessing their supply chains and considering risk in a way they never did before. Disruptions can happen in geographical regions, at crucial points during the year, which will in turn stand in the way of your business’ ability to receive shipments on time. How can vendor management help? We can evaluate vendors based on supply chain risks and widen your pool of suppliers to include vendors from other geographical areas so you’re not left waiting for missing shipments while your competitors are humming along with on-time deliveries. You’ll more easily be able to switch over to an alternate supplier in the case of a severe storm or Act of God that hits one of your suppliers in a certain region.
Part of our vendor management service includes vetting your suppliers for just these kinds of details and making sure they are properly onboarded into your procurement system. While we want you to have a variety of potential suppliers ready to go, we also want to make sure that they align with your risk management needs and fit your business’ requirements in terms of compliance and capacity. After onboarding qualified vendors, we then continue to monitor them for you to counter any unforeseen issues you might have with procurement. That will save you time and money, while also reducing your supply chain risk–a major concern for most companies these days.
Whether you need a quick turnaround with a supplier because of sudden risk increase or budget issues, outsourcing your vendor management allows you to get back to work while we put in the manhours and tedious efforts to get your vendors lined up and ready to go. We can quickly source new suppliers as needed, re-negotiate or terminate contracts while handling all the paperwork, and streamline your vendor payments. This translates to incredible cost savings for your business as well as optimized procurement efficiency.
No more missing shipments because your supplier got stuck and you’re without a backup. No more wasting employee time chasing down vendors and hammering out contracts. No more over-paying on goods and services because you just couldn’t afford the time and manpower needed to re-negotiate contracts and find better, vetted, lower cost suppliers.
Outsourcing your vendor management to Management Services Group means spending a little to save a lot. Our clients save more money and increase profits thanks to our vendor management to the tune of thousands, tens of thousands and even hundreds of thousands of dollars–worth their original investment in our services! Over 90% of our clients end up saving more than they spend on their entire contract with Managed Services Group.
Management Services Group’s vision is to be the best IT Services provider in Central Florida. We want to work alongside you to make your business thrive. Contact us today to find out how our Vendor Management team can help you with your supplier headaches–and see what other services we can offer you.