I’ve been on the vendor company side of business all through my career. Here, by vendor, I’m referring to a company that provides a customised service, product, design or installation – not an off-the-shelf product. The companies I’ve worked with have been suppliers or contractors to small, middle and large organizations – the whole gamut. I’ve been on the customer side too in some instances but my exposure there has been limited.
I thought that the industry I used to work earlier in, was the only industry that was highly demanding on its vendors – to the extent of being unfair and inhuman sometimes. By inhuman my reference is not to physical abuse but rather the excessive mental pressure being inflicted on vendors. I moved through two other industries and found that I was wrong. It isn’t the industry which matters – it’s the people. People in this country (India) are largely alike in this context. Every company, almost every manager I have seen comes with typically the same mind-set – “squeeze the vendor”.
It seems to be ingrained in the Indian style of working. It is expected that a vendor:
- Outdoes the contractual obligations
- Gets paid lesser or just about whatever is agreed upon
- And still takes the blame for failures
Vendors’ representatives are expected to respond at lightning speeds, while customers can talk of stalled decisions due to processes and internal issues. Vendors’ execution teams are expected to work extra hours, slog it out and push themselves beyond professional limits. Vendors’ teams are even expected to make the customers’ team do their jobs. Yet the customer, in most cases doesn’t even say an encouraging word to the vendor team. In over a hundred managers, there is just one who understands the need to encourage and motivate vendors, just one who understands that vendors aren’t motivated just by the money they earn, they get motivated when they are treated as equals.
I have had much better experiences working with people abroad. They seem to have a more humane and professional approach to vendor management. They understand issues in the project and truly treat vendors as partners or extended hands.
The problem I’m referring to is something I encounter with Indian managers only. I’d really like to advocate better treatment to vendors by way of:
- Respecting them as humans first.
- Understanding that they are also employees and have a right to all employee rights and benefits as anyone else.
- Realizing that vendors excel when motivated by encouraging words and equal treatment.
- Appreciating that vendors are essential to the business and a happy vendor can do wonders.
Vendor development should not be just about processes but ought to also include a human touch to motivate, encourage and take along the employees in the vendor company.
A good vendor can transform business operations for customer and can, in instances, be relied upon more than a company’s own employees to deliver excellent results.