Most organizations rely on the use of vendors to deliver supplies as well as to perform specialty services designed to help the company in certain areas of business. Vendors are even hired to perform routine maintenance or simple emergency repairs. It’s one thing to call upon someone to deliver merchandise or provide services, but it can often require proper vendor management services to ensure that services are properly completed.
In order to qualify a vendor you need to determine if the vendor has the legal and business requirements, as well as expertise and the necessary capabilities to deliver services that are to your expectations. Having adequate financial capabilities means being credit-worthy, and having the ability to pay for goods and services, including supplies, payroll, and operating expenses. Hiring a vendor that doesn’t have the financial qualifications for the delivery of services required can lead to unwanted stress.
Choosing the right vendor
The right vendor will have adequate training related to your needs and also the necessary licenses in place. They will deliver on their promise regardless of the size of the job or the deliveries required. The vendor needs to employ a sufficient number of qualified staff in order to provide those services. Training of staff is key to providing the deliverable’s and maintaining any specialty license. This training should include certification for operating of equipment plus any required basic safety training or specialty safety training related to the work being done. For example, if the job requires operating a forklift or working in difficult areas, such as a confined space.
Being properly insured is vital as it provides financial protection in the event an accident occurs resulting in damage to property or personnel. You may be in compliance with a certificate of insurance but should also realize that those requirements must be met prior to engaging with any vendor. The limits and requirements are often determined by many business factors, including the policy limits of each insurance category, such as general liability, auto, worker compensation, and any additional requirements for your organization.
When working with a vendor it is your responsibility to follow up and verify that payments have been made and the vendor is satisfied. This is typically done in response to a vendor inquiry. This can often be time-consuming and shows how vital it is to have good vendor management services in place.