Why Services Aren’t As Bad As You Think

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Performing Due Diligence on a Potential Supplier The coverage of any due diligence process will be affected by the cost of the services for procurement, the value of the services to your business, and the risks of the absence or poor performance of such services. However, no matter the size of your business, there are some basic steps you must follow. Identify your needs and preferences. You need to be clear from the get-go what you want to achieve. This will help you see what specifically you need from your supplier, not just as far as their service offering is concerned but also their values and how they treat their customers. Studying the Market
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Knowing what you want and need from a supplier, you can draw up a shortlist of prospects through a “Request for Information” document (RFI). This quickly outlines the goods and/or services necessary and requests information as to suppliers’ abilities and competencies.
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Investigating Probable Suppliers Here’s a checklist that will enable you to evaluate potential suppliers’ abilities and fit with your organisation: Business Identity- Know the company you’re dealing with: is it legitimate and is the person you are negotiating with authorized to bind the supplier? Financial Background- If a supplier has dealt with an operating loss, or a substantial loss of revenue in the past few years, this could indicate a deeper problem. Delivery of Goods/Services – Does the supplier’s proposed method of addressing your requirements jive with your present practices? How do they intend to contain any difficulties? Are they capable of delivering the promised services for the quoted price? How do they compare with others on this particular aspect? On this account, how do they compare with the others? Quality – Look into the supplier’s credentials and/or industry accreditations. Cost – Compare different suppliers’ quotes. But take note that best value for money isn’t automatically equal to the lowest price. Business age – Longevity can make you more confident but a newer company can use a more innovative approach and overall attitude. Track record – Request for feedback from other customers, some of whom you may even know. Talk to your prospective supplier – This is not just an effective way of knowing if you can work together but also gives you a glimpse of their premises and samples of service deliverables or witness demonstrations on the way the services are going to be performed. Risk Assessment and Management The moment you appoint your supplier, create a risk register expounding on relevant risks and how to handle them. You can refer to this throughout the course of the business relationship. Choosing Data Processors Sharing data with your supplier may be necessary, but do make sure they are fully aware of current data protection regulations and will actually comply.