Guest Blogger – Nancy Sorbella of the Fidelis Group on Successful Vendor-Client Relationships in the New Economy
Successful Vendor-Client Relationships in the New Economy: Never underestimate the power and value of a good vendor.
As businesses today assess the current economic climate and their goals and objectives, one area rises to the top: collaboration.
Collaboration has always been an integral part of every business model but its definition has been widely interpreted. Internal collaboration among colleagues, management, teams, departments—all a given. But in today’s new economy, external collaboration is trending—and necessary for growth and success. There have been many positions on this topic, on both sides, but at this point, the companies that are making their numbers, exceeding goals, charting new territories and experiencing unprecedented growth, are all doing it with the help of a trusted team of vendors.
According to Charlie Craig, a veteran print vendor, “The value of collaboration between vendor and client is more important now than any other time in the 30 years of working in the printing business. As budget cuts impact our customers, we find that a less experienced person is now expected to do the job of many and in some cases, replace entire departments. As a print vendor, we need to align with each customer, all with unique expectations, and create a team that provides expertise across all facets of production and distribution. Although we provide a manufacturing service, the successful collaboration with our customer comes from the people that work together as one team.”
What defines external collaboration and why is it key for businesses to look outside for partners? In its simplest form collaboration between a client and a vendor may be necessary because a company has downsized and no longer has a particular department in-house. This could be Accounts Payable, IT, fulfillment—almost anything. In a broader sense, an external partnership or strategic alliance with a vendor known for its expertise in a category where the client’s company has a void is indispensable—there is critical need and a credentialed vendor steps into the role as a contractor or consultant, becoming a trusted and integral part of the organization.
In years past as companies grew they developed departments designed to fill almost any need that might arise.
But as the challenges of the last decade have predicted and dictated, this model has not been the most profitable or prudent. Savvy companies have realized ways to forge relationships with other companies and individuals who can fill in temporarily or who have developed a stellar expertise that would be challenging and costly to replicate opening the doors to external collaboration and strategic partnerships.
Speak to any successful client or vendor and ask them to describe their team—I have interviewed many and they all point to each other. From the list brokerage side: “Being an effective collaborator presents itself with the opportunity to be a future long-term partner and these relationships are the cornerstone of our industry. This is the one constant that seems to remain even in the currently changing landscape of direct marking.”–Mary Dechiaro, RMI, and, “When a client trusts their vendor, and are open with information, the result can be quite satisfying and successful. Being privy to the inner workings of a customer’s business fosters the generation of creative ideas and allows everyone involved to see things through a different lens.”–Jim Chiavelli, Evergreen Marketing.
5 Steps to Successful Vendor-Client Relationships:
1) Define your need and identify the best vendor to fill it.
En route to a successful association a client must clearly understand their internal void and be able to clearly communicate this to their vendor. It is imperative that communication between client and vendor flows freely and regularly. The best “partner” understands the industry and its nuances and demands, respects them, embraces them and is prepared with solutions. Never underestimate the value of sharing all previous successes and failures. A good partner will use this information wisely and it will help frame a strategy for meeting and exceeding goals. A client should not take this vendor selection casually; the process of vetting out the best partner depends upon many factors not the least of which include budget, core competencies, company culture, ethics, values, costs and commitment. The discovery process or request for proposal (RFP) can be lengthy but is always worth the time and money spent. This vendor is expected to be a team member, another “arm” of your company—choosing the right fit impacts your business and your bottom line.
2) Clearly outline goals/budgets/time frames/tools and expectations.
A vendor cannot be successful on behalf of a client and cannot meet their goals without clear understanding of all facets of the project(s)and their budgets, challenges and expectations. Hold nothing back. A good vendor is always thinking about their client and providing creative solutions. The days of “order taking” are over in the new economy. In today’s global business arena where information is flowing constantly, over many platforms and channels, having a solid and trusted partner ensures that many eyes are watching the business and have ownership of the outcomes of their efforts.
3) Stay in touch continually: regularly scheduled calls and meetings are key to communication clarity and long term strategy.
Staying in touch means returning all calls and emails promptly. A no-brainer that is almost insulting? Maybe, but I constantly hear from clients and vendors that the “ball was dropped”, they didn’t get this or that done on time, etc. Dig deeper and find out that there was a time lapse in communication, an assumption made, or something else got in the way of sharing critical and time-sensitive information. The vendor is a partner, not a clairvoyant. So, go back to Business 101 and respect each other and your time, and always respond in a timely matter. Everyone has a mobile phone or tablet so there is really no excuse. Also, if the client engages a vendor, even just to test the waters, they should always know where they stand. A good vendor has a thick skin. If you’ve changed your mind, if a budget is cut or if you found another partner, tell your vendor. A solid collaboration can withstand upheavals but not respecting the value of the potential relationship is a deal breaker for the long term.
4) The true “value” of a vendor client collaboration may not be 50/50 or even obvious.
In many cases the relationship is elementary or appears to be 50/50: The client has a void, the vendor fills it. At other times, the need might be that and then some. It may initially seem imbalanced from the client’s perspective.
If a client has their own customers to satisfy, the association can be more innovative. A good vendor doing their due-diligence will study their client and dig deeper. Is the client meeting all of their client’s needs? If not, and they haven’t even considered providing more, the vendor may initiate this by offering other services and products. Often that “toolbox” includes products and services that the client is reluctant to invest in but the vendor already has. Taking advantage of this cost effective integration is the root of many seamless alliances. While at first glance this might look like the vendor is getting more business out of the relationship, in truth, the client is meeting and exceeding more of his client’s expectations with less investment, and its a win for everyone.
5) Collaborative partnerships can be game changers. The company that I work for was created by a unique client-vendor relationship. Our first client, a large Fortune-500 financial services company initiated the dialog that resulted in the formation of our organization. Essentially, the client said, “if you build it (the infrastructure) we will come.” and The Fidelis Group was born. In this case neither company would have moved forward without the other, and 12 years later the partnership remains and continues to grow stronger with each year and with the advent of the latest technological innovations. Maximizing any strategic relationship will always have the power to positively impact both the client and the vendor’s business. The right vendor with the right tools and understanding of the marketplace will invest time and energy into ideas and solutions. The open minded client welcomes this and through a series of planned or accidental collaborations with vendors, will grow to greatness.
Heather Holmes of 1105 Media sums up the relationship this way, “There is tremendous value in establishing and maintaining a strong client-vendor relationship. The resultant collaboration is essential for several reasons:
It enables the vendor to best understand the client’s needs and address them proactively, it increases the value of the vendor from the client’s perspective and it ultimately furthers the end goal – often in a bigger, more progressive way than initially expected. Vendors bring not only their core expertise to bear, but also are uniquely able to bring the perspective of all of their clients’–which is an incredible asset—to the equation.”
Success today depends upon many factors. However, the days of underestimating vendors should be behind us. The same applies to a vendor who thinks that any client relationship is based solely on the sale of one product or a single contact. In today’s economy it is the relationship that secures the business and for that both sides must be “in for the duration”.
Nancy Sorbella is the Vice President of New Business Development at The Fidelis Group, Inc, specializing in strategic partnerships, sales, marketing and social media in the catalog, publishing and retail sectors. An industry veteran, she is proud of her stellar client relationships, many of which span over 20 years, which in the direct marketing industry equates to a lifetime!
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