
1. Go for quality, not quantity with your vendor
The old procurement-driven advice on managing vendors was to have a huge portfolio of potential vendors, and put every procurement out to competitive bid, playing vendors against each other and applying pressure until you got the absolute lowest cost. While this can be effective in the near term, there are two risks. The first is rather obvious: if you always seek the lowest cost, you’ll always get the minimum acceptable output. This may be fine for commodities like connectivity services, hardware, and some IT services, but puts more complex endeavors at risk.
For an analogy to our personal lives, finding the cheapest gasoline is fine (as long as you don’t spend an hour driving to save a few pennies), but you probably don’t want the cheapest brain surgeon poking around between your ears.
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