Best Practices for Working with Vendors and Suppliers

On Demand Webinar

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Kenneth Jones
  • Topic:   Purchasing
  • Credit:   CPE 2.0, ATAPU 1.5
All Access Membership

Attendees will gather information related to building vendor relationships that will best benefit your organization. They will know what to look for in reviewing agreement terms that protect their employer and mitigate risk. We will review areas that enhance your value to a vendor and how to make vendors and suppliers work for you. They will hear of several real-life examples of problems and success stories in building vendor relationships. There will be examples of win-win solutions where both the customer and the vendor benefit. Participants will learn to avoid pitfalls that can cause problems for them and their organization. They will learn about monitoring vendor performance to enhance the quality of the services thy provide your company or agency.

1. This is a Business Relationship

  • You are representing your Company or Agency
  • You’re First Priority should be to look out for the best interests of your Employer
  • Your Vendor will be looking out for their best interests
  • Avoid getting into a personal relationship with your supplier or their representative

2. Coming to Terms with your vendor

  • Make your vendor aware of your company or agency purchasing terms and conditions
  • Bind your agreements with vendors using your written or published terms
  • Avoid using agreements drafted by your vendor
  • Review all vendor terms and conditions of sale, warranty, liability, indemnification, etc.

3. Limit the Risk to your Organization

  • Require Insurance of all appropriate types
  • Require certifications or licenses if required
  • Provide for Penalties for unsatisfactory performance
  • Provide convenient exit clauses for your organization
  • Do a vendor Responsibility Check

4. How to increase the quality of your business relationship with vendors

  • Know what products and services they provide
  • Offer them open and competitive solicitations
  • Give them adequate time to respond to solicitations
  • Monitor their Performance
  • Pay them timely in accordance with your published payment terms

5. Case Studies

  • Vendor is doing work that puts your company at High Liability Risk
  • Vendor is not providing Quality Transportation Services
  • Long time vendor is protesting their loss of Business
  • Monitoring Supply vendor leads to more flexibility to the end user
  • Poor results are discovered after the vendor has left the job site
  1. Introduction 00:01:13
  2. A Business Relationship  - Things To Remember 0:02:37
  3. A Business Relationship - Who Is Your Vendor Representing And Protecting? 00:08:44
  4. A Business Relationship - Keeping The Relationship All Business 00:16:34
  5. A Business Relationship - Avoid Getting Into Personal Relationships 00:27:36
  6. A Business Relationship - Case Study 00:32:00
  7. Coming to Terms With Your Vendor - Terms And Conditions 00:34:01
  8. Coming to Terms With Your Vendor - Binding Agreements 00:41:43
  9. Coming to Terms With Your Vendor - Vendor Agreements 00:51:31
  10. Coming to Terms With Your Vendor - When You Must Use A Vendors Contract 00:57:04
  11. Limit The Risk To Your Organization - Require Insurance 01:04:16
  12. Limit The Risk To Your Organization - Specialized Insurance 01:06:32
  13. Limit The Risk To Your Organization - Certifications Or Licenses 01:09:29
  14. Limit The Risk To Your Organization - Penalties 01:11:41
  15. Limit The Risk To Your Organization - Require Bonds 01:15:49
  16. Limit The Risk To Your Organization - Exit Clauses 01:16:41
  17. Limit The Risk To Your Organization - Vendor Responsibility Check 01:23:24
  18. How To Increase The Quality Of Your Business Relationship With Vendors - Products And Services 01:26:11
  19. How To Increase The Quality Of Your Business Relationship With Vendors - Competitive Soliciations 01:29:20
  20. How To Increase The Quality Of Your Business Relationship With Vendors - Monitor Performance 01:31:34
  21. How To Increase The Quality Of Your Business Relationship With Vendors - Payment Terms 01:33:11
  22. Case Studies - High Risk Liability 01:35:15
  23. Case Studies - Quality Transportation Services 01:36:11
  24. Case Studies - Quality Transportation Services Continued 01:36:57
  25. Case Studies - Quality Transportation Services Continued 01:37:31
  26. Case Studies - Protesting Loss Of Business 01:38:08
  27. Case Studies - Monitoring Supply Vendor Leads 01:40:12
  28. Case Studies - Monitoring Supply Vendor Leads Continued 01:41:21
  29. Case Studies - Poor Results 01:41:48
  30. Question & Answers Period 01:42:36
  31. Presentation Closing 01:46:15
  • Arbitration 00:42:42, 00:42:55, 1:00:04
  • Bid 00:08:12, 00:13:34, 00:35:53
  • Bid Bond 01:15:55
  • Commodity 00.09:39, 00:10:40, 00:45:54, 00:46:12
  • Contract 00:04:45, 00:06:44, 00:06:49, 00:08:10, 00:43:41, 00:44:02, 00:49:20
  • Debriefing 00:48:49, 00:49:10, 00:49:17, 00:49:47, 00:49:56, 00:50:09
  • Force Majeure 1:02:04, 1:03:07
  • Indemnification 1:00:05, 1:00:08
  • Labor and Materials Bond 01:15:55
  • Liability 00:59:29, 00:59:50, 01:06:39
  • Procurement 00:01:35, 00:01:41, 00:03:07, 00:08:24, 00:08:32, 00:08:47, 00:09:48, 00:38:12, 00:44:12, 01:23:20
  • Request For Quotation 00:42:24,00:46:58
  • Requisition 00:46:14
  • Scoring Matrix 00:49:39
  • Vendor 00:02:46, 00:03:09, 00:05:00, 00:08:13, 00:36:15, 00:37:41, 00:42:53

Bid: A bid is an offer made by an investor, trader, or dealer in an effort to buy an asset or to compete for a contract.

Commodity: A basic good used in commerce that is interchangeable with other goods of the same type.

Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

Contractor: A person or company that undertakes a contract to provide materials or labor to perform a service or do a job.

Procurement: Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement is used to ensure the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.

Request For Information (RFI): A request for information is a common business process whose purpose is to collect written information about the capabilities of various suppliers. Normally it follows a format that can be used for comparative purposes. An RFI is primarily used to gather information to help make a decision on what steps to take next.

Request for Proposal (RFP): A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals.

Scope of Work (SOW): The Scope of Work (SOW) is the area in an agreement where the work to be performed is described. The SOW should contain any milestones, reports, deliverables, and end products that are expected to be provided by the performing party. The SOW should also contain a time line for all deliverables.

Scoring Matrix: A tool that helps you evaluate multiple options based on a set of criteria.

Subcontractor: The process by which these various specialist trades are brought into a project.

Vendor: A vendor is a person or business that supplies goods or services to a company. Another term for the vendor is the supplier. In many situations, a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms.

Vendor Database: The Vendor database stores information about your vendors. Because the system is fully integrated, the information you enter in the Vendor database is automatically supplied to other parts of the system.

Z-Score: The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years.

Guest Speaker

  • Kenneth Jones

CPE Credit

Continuing Professional Education

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You must answer all questions during the webinar, view the recording completely and pass the test at the end with 70% correct answers to receive CPE credit.

ATAPU Credit

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in purchasing.