When it comes to running a business, maintaining smooth relationships with vendors can help to facilitate the successful operation of a company. However, these relationships can become contentious under certain circumstances, whether due to disagreements over pricing, missed deadlines, product or service quality issues or poor communication. After resolving a dispute, companies often face the question: Should we continue working with this vendor or move on to a new partner?
Business owners shouldn’t ignore the realities of past conflicts. Acting as if concerns could never arise again is willful ignorance. However, there may be times when it makes sense to work with a contentious vendor again. Each situation is unique.
What happened?
The first step in deciding whether to work with a vendor again is assessing the root cause of the previous conflict(s). Was the issue a one-time problem, such as a temporary disruption in supply or a miscommunication, or was it indicative of deeper, ongoing issues with reliability or professionalism?
If the conflict stemmed from an isolated incident that was addressed and resolved, continuing the relationship may make sense, especially if the vendor provides unique products or services that are difficult to replace. However, if the conflict arose from a pattern of behavior, such as chronic delays, subpar quality or consistent miscommunication, it may be time to consider parting ways. Working with a vendor who has repeatedly failed to meet expectations can lead to more serious issues down the line, including lost revenue, damaged client relationships and potential legal disputes.
You’ll also want to weigh the benefits of continuing the relationship with the vendor against the risks of potential future disputes. Consider the value the vendor provides to your company—do they offer competitive pricing, unique expertise, or specialized products that are difficult to find elsewhere? If so, it may be worth giving the vendor another chance, provided that safeguards are put in place to prevent future conflicts.
If you decide to continue working with a vendor that has been contentious in the past, it’s important to put safeguards in place to prevent future conflicts. This may involve renegotiating contracts with more detailed terms, setting clearer expectations for performance and establishing regular communication to ensure that both parties are on the same page. Creating a more structured framework for the vendor relationship can help mitigate risks and ensure that issues are addressed before they escalate into larger problems.
Ultimately, if a conflict scenario was isolated and a vendor took steps to resolve it, continuing (or restarting) the relationship at issue may be beneficial. However, if there were deeper, ongoing issues or a lack of accountability, it may be wiser to seek new vendors. Ultimately, protecting a company’s interests often involves assessing concerns in context and addressing them accordingly.