Site icon Banyan Business Outcomes LLC

4 Levels of Vendors

How does partnership feel?

True Partners provide exponentially more value than vendors who fail to meet contract terms or create brand and security risks.

Understand vendor performance and its contributing factors, then take action.

Vendor performance is multifaceted and complex. A vendor may be strong in one area and weak in another.

What does it feel like to work with each level of vendor?

At Risk Vendor

“I don’t trust them to do what they say.”

  • Inconsistent delivery
  • Excessive rework & supervision
  • Lack of ownership
  • Disconnected from business value

Performing Vendor

“They only do what they are contracted to do.”

  • Delivery is fine with occasional issues
  • Responsive to my request
  • Doesn’t volunteer ideas
  • Relationship grows stale as business needs change

Preferred Vendor

“They go above and beyond.”

  • Delivery is excellent with few errors or communication gaps.
  • They understand my business and the value the provide.
  • They suggest ways to improve.

True Partner

“We are fully committed to each others success.”

  • They are an extension of my team.
  • We co-invest in innovation to our mutual benefit
  • They challenge me.

The value of each vendor / partner

At Risk Vendors deliver less value than their total carrying cost (fees, rework, supervision, hassle, risk, etc.) In some cases, at risk vendors can cause unbounded damage through cybersecurity or brand risk.

Performing Vendors deliver good value. In many cases, for non-differentiating or mission critical requirements, a performing vendor is ideal; but for functions that require innovation, they can fall short.

Preferred Vendors take ownership of their service and understand the business value they provide. Working with them feels seamless.

True Partners are rare. A partner collaborates with you to develop capabilities to your mutual benefit. It’s a reciprocal relationship of excellence, collaboration, and generosity. They may create a positive black swan of unbounded value.

We help clients improve vendor performance

We help clients create great vendor relationships and true partnerships through these services.

Vendor Path to Partnership

Capture the full value of your agreement and the potential value of your relationship.

Portfolio Optimization

Reduce vendor sprawl to lower vendor carrying cost, reduce risk, and simplify management.

True Partner Sourcing

We help companies find vendors capable of partnership and create relationships that fit.

Let’s talk more about your business, objectives, and the potential of your vendors.

Contact Us

Let us know how we can help you improve your vendor outcomes.

Let’s talk

‪(720) 295-6248

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