CIOs have several responsibilities, so vendor management errors might occur. The catch is, it might cause a money drain for your company, and you might lose face in front of the stakeholders. While some mistakes are unpredictable, you can prevent others by being proactive beforehand. What are those? In this article at CIO Insight, Ericka Chickowski shares vendor management errors that CIOs can avoid.
Mistakes in Vendor Management
Stakeholders will have different wants, so it might be that they may not agree to a standard list of requirements. It prevents vendors from getting specifications, and they have to ask several departments to get proper suggestions.
No Clue on Requirements
If you have no idea about what you need, you might face vendor management errors pretty early. You should frame written contracts and build an RFP process before sitting with the suppliers. You cannot rely on vendors to understand your organizational needs as clearly as you.
Arbitrary Pricing Range
You must know if the products, services, or licenses you are purchasing are worth the money. The most important factor is trust, according to Robert Willet, CIO at Best Buy. He wonders, “Do I trust these people and are they going to deliver what they promised?”
Depending on One Supplier
One of the silly vendor management errors is to rely on one supplier for all your needs. It takes years to build vendor relationships, yes. However, it can also reduce your chance of getting a better solution at a discounted price.
Choosing Only Popular Brands
Companies usually prefer vendors with a fair market reputation, and those firms are usually established and large ones. Union Pacific CIO Lynden Tennison points out some advantages of choosing smaller suppliers. They are more customer-centric and ethical. Moreover, you can have the power to negotiate with them.
Not Reviewing Contract Regularly
When have you last reviewed your vendor contracts? Several CIOs sign the contract with suppliers and forget about it entirely until something urgent comes up. Have you checked if you are getting all services as they promised in the agreement? Before going for another supplier, enquire if your existing vendor provides those services by reviewing the document regularly.
To view the original article in full, visit the following link: https://www.cioinsight.com/c/a/IT-Management/Six-Rookie-CIO-Mistakes-in-Vendor-Management-842847
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