Selecting Value-Congruent Vendors, Suppliers, and Partners

Enterprises depend on highly skilled outside parties. This allows organizations to remain focused on performing at the highest level with their own customers, colleagues, and critical stakeholders. 

Because these vendors, suppliers, and partners reflect both the brand and quality of the enterprise, their selection is of the utmost importance for long-term success.  Yet, in far too many businesses and enterprises, that selection depends more on price and contract flexibility than on quality and value congruency. 

Over the long-term, this means the outside parties connected to the enterprise are not the best at what they do, nor do they typically hold the same values or principles so important to internal success. This mismatch erodes the quality of the organization with every contract, new or renewed, that is selected primarily on cost.

Yet, that is the norm for so many businesses. And those on the outside know it and act on it. Some will routinely reduce the quality of their work just to compete on price.

The best organizations and leaders reject this line of thinking. They begin the selection process by determining how consistent the outside party is regarding the match between the values and the brand both parties desire to project. Price is of little consequence if the services, products, or advice offered are inconsistent with what the enterprise stands for and hopes to instill in others. 

Even when selecting outside parties based upon quality and values first and foremost, the organization must remain diligent that those attributes continue into the future. Good organizations continually reassess outside parties to ensure they are best of class.

Of course, cost and flexibility are not to be overlooked in the process. Even the best suppliers and vendors can and should remain price competitive, but judging an outside party primarily on price is a recipe for mediocrity. 

Take a hard look at the top handful of vendors, suppliers, and partners who are heavily relied upon in your organization. Do they smartly reflect your organization’s values? Are they best of class regarding quality and performance? Don’t leave such an assessment to others. They have been rewarded to negotiate the best price for far too long, and often miss the forest for the trees. Take on this assignment personally and see what you learn. Remember this: the cost of success is far cheaper than the price of misalignment and failure.