How to know when it’s time for a change of supplier

You know it’s time for a change, now what?

First, take the time to step back and analyse what went wrong. What were the pain points of your failed relationship with your previous supplier? What worked well? Get feedback from your employees.

Make a list of requirements you need from a new supplier, and make it detailed.

With that list in hand, start talking to new vendors. Ideally, speak to a lot of them. Conventional wisdom says you should speak to at least 3 - we’d recommend doubling that number if possible.

Oftentimes, the more you talk about the requirements you need, the clearer the issues become and the more accurate your next selection will be. Make sure all the boxes on your list are ticked by this new supplier.

Here are a few other things to consider when choosing a new vendor - especially in the IT space:

• If you’re buying a different ‘off-the-shelf’ product, make sure you do so from a respected software vendor. Get second opinions from professionals in the industry, and do plenty of research. Speak to others that use it. If you’re worried about being boxed in by another product, great software integration specialists exist.
• Don’t take into consideration pure technical prowess when selecting a supplier. Consider whether they’re really listening to your needs and whether they truly understand your business goals in a way that makes you feel comfortable speaking to them. Trust your gut feeling when it comes to chemistry and mindset.
• Look out for client reviews from third-party platforms such as GoodFirms, and feel free to request to chat with one of the suppliers’ clients that may have been in a similar situation to yours.
• Consider the location for time-zone differences for working hours, and international laws depending on your industry regulations.
• Double-check whether the supplier has a proper physical head office - while not completely necessary, this may give you some confidence in knowing whom you’re speaking to.