CLEVELAND — The case for your vendor selection can be as varied as the many types of laundry facilities we operate. The decision to select one vendor over another is critical to your success, so understanding the benefits and liabilities that can come with them may be a crucial factor.
Depending on the type of operation you run and the size of your program, you may have an exceptionally large pool of vendors to choose from. There are all kinds of vendors with varied offerings and services, and selection may appear opaque and difficult.
Understanding what you want and what your priorities are will be essential to selecting the vendors that will be most beneficial to your operation. Here are some basic divisions to consider.
Price. This is nearly universal in our industry. There are very few, if any, operators out there that do not have to realistically examine the cost of goods and services at every level of the operation. I have not found one yet. Price point is a major factor, if not the factor, in selecting vendors.
We all know you can pay as much as you want, but can you really afford to pay as little as you would like? Endlessly hunting for the best price can be expensive, and eventually you will reach down far enough to find something so unsatisfactory that the cost is greater than the usefulness of the purchase. Driving across town to save a penny on fuel may not be worth the cost of travel to get that price. In this way, it is important to look at the overall costs before deciding.
Service. Many vendors offer additional services beyond the basic transaction. Many of these value-added services can enhance other aspects of your operation and should not be overlooked in the quest for pricing. Vendors know this and usually promote differentiating factors as a marketing point.
But it is not always clear what additional assistance is available, and it is incumbent on you to ask what is offered and included. Asking what is available can sometimes yield surprising results and unexpected value to the vendor in the assessment.
Flexibility. The one thing that is certain is change. Be aware that needs and expectations will evolve, and what you are looking for today is unlikely to be what you will need tomorrow. A perfect match is great, but is the vendor robust enough and agile enough to keep up with what comes next? Not having this will lead you to revisiting previous decisions and spending time again on a selection.
Longevity is one consideration in measuring this. Vendors that have been in business longer have successfully managed changes in their industries and have experienced changes in their markets. A track record of adapting to change is a positive indicator.
Track record. Some vendors can point to a successful history of providing satisfactory results over extended periods of time. Often, they will offer flagship accounts as proof of this. When they do, they ask about failure and find out how they deal with this as well. This can provide a level of confidence knowing how they manage the downside as well as the positive.
Partnership. This word is so overused and under-realized now that it is practically a punchline. Everyone seems to say it; few actually live it.
When you find a true partner, be sure to include the value of this in every decision you make. A partnership, once lost, is unlikely to be regained. Again, price may not offset the choice for a vendor that has your back in a crisis.
In this industry, we all develop a reputation, and it lingers. Your reputation, as well as your company’s reputation, will most certainly impact the range of options and opportunities among vendors, not only today, but for years to come. Do not let situational ethics interfere with integrity, no matter how great the pressures of the moment.
Think of vendor partners as best friends you know you can count on no matter what. Having several dependable and reliable vendors to work with will enhance the operation and allow focus on other matters. This has value beyond peace of mind; it clears the way to advance the program in other areas, much like having confidence in the capabilities of your direct team.
Reliability. Vendor selection must account for their reliability and thus their integrity when making a selection. Most of us experienced unprecedented disruption to our operations during the COVID pandemic, just like our vendors experienced. It is these kinds of disruptions that will separate your vendors into those that you can rely on and those that are not able to be counted on in a pinch.
Be sure to value this appropriately because when things are going poorly, you are doubly dependent on your support mechanisms to help you pull things back into place. The last thing you want is to find compounding problems during these periods.
Confidence. The level of confidence you have in your vendor, whether it is based on direct or indirect experience, is imperative for selecting the right match for your operational need. Belief is a powerful asset and not to be undervalued. The choices made will be proven over time, so be aware of the necessity to believe the “right” choice was made and embrace it going forward until it proves correct or incorrect. In the event of the latter, determine if it is necessary to make additional changes or to revise expectations before acting.
How you arrange your vendors. This can also be a key factor in your operations. Dividing among multiple vendors is a strategy that can potentially offer redundancy. The price of this pathway is a reduction in the weight and value of the partnership with each fractional vendor.
If the volume is sufficient, this can be less impactful, but the underlying lack of confidence will not go unnoticed. Depending on how many vendors you have, it may complicate things exponentially.
Cherry-picking vendors — using various vendors for only one or a few targeted items while having others fill in the rest of the need — can also become complicated quickly and is highly unlikely to build a positive relationship with any of them. Even though this is done, it must be with a full understanding of the risks.
Vendor selection is sometimes outside your control. That is not a reason to not mutually cultivate a positive and proactive association.
The potential for a great vendor experience is yours regardless, and it is up to you to reach for the kind of experience that will best serve the organization.
Have a question or comment? E-mail our editor Matt Poe at [email protected].
