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equest for a price quote. Don't be afraid to ask vendors for quotes; they're used to it and they probably expect it. After all, this is a major purchase, and it's never wise to make a major purchase without shopping around — especially when you're going to a vendor you've never dealt with before. If you're having a hard time finding vendors, and an even harder time finding information about them, you can run your own test by placing a very small order, under $100 in total value. If that process goes well, take it up a notch and place a slightly larger order the next time. Once you feel comfortable with the vendor, you can place your full-blown orders without worry. 5.1 Getting Quotes: When you want to make a big purchase for your business, you need to know the total cost upfront. To get that information, you need to ask the people who sell whatever it is you want to buy. In order for that information to be fixed (as opposed to changeable), it's best to get it in writing. When your company is buying a product, that information will come in the form of a quote; when it's services you're after, the quote is usually referred to as an estimate. The best way to get a quote is to talk with a salesperson; quote requests that come by mail are often ignored. Phone contact is fine, especially after you've begun to build a relationship with that vendor or salesman. For your first time out, though, a face-to-face meeting could prove more fruitful, especially if you're spending a significant sum. Even though salesmen themselves are seldom involved in setting company pricing policy, they often have some leeway when it comes to closing a deal. When you establish a personal connection with a salesman, he'll work harder with you and for you; after all, making a sale to you is his bread and butter. Flexible areas often include lower unit pricing when you buy in bulk, and better credit terms. 5.2 Avoid These Vendors: There are some vendors that you should avoid. If you run across a vendor with one (or more) of the following characteristics, run in another direction: Accepts cash only Asks for checks made out to cash Won't send a brochure or catalog Won't give you a price quote or estimate in writing Dirty, disorganized stockroom No warehouse or storage facility If one (or more) of these factors is the norm in your industry, and the vendor in question has gotten high marks from a reliable source, it's probably safe to keep him on your list. However, if it's the vendor telling you this is normal practice, and you can't verify that with anyone else, look for a different vendor. 6. Establishing Good Vendor Relations: Developing your vendor relations will save you stress and time, both of which you can save for planning more events. 6.1 The Vendor Cast of Characters: Your vendor list will vary depending on your field of event planning. When shopping for a vendor, ask other players in the same area for recommendations. You can also ask the company for referrals from other clients in the industry. Be sure to call the company for a full report before you decide to hire a vendor. As with industries, vendors rely heavily on their reputations to be successful. You might find yourself looking for the following vendors when you begin your career. Labor companies, which includes electricians, general contractors, carpenters, and painters Graphic designer or Web designer Specialty stationery designer or printing company 6.2 Working with an Existing Vendor List: You may also find you are entering into a position with an existing vendor list. Ask your new associates how the relationship between the company and the vendor has been in the past. When appropriate, schedule a meeting with the vendor to introduce yourself. During the meeting you should get an idea of the existing process of ordering, delivering, and billing. You should reserve offering suggestions until you have worked with the company for a few months 6.3 Creating Goodwill among Your Vendors: If your goal is to develop a healthy relationship with a vendor, you must make a conscious effort to show your appreciation. Here are some suggestions to create goodwill and develop your vendor relationships. Offer a drink to your delivery people. Restaurants have the luxury of offering this service to their vendors. If you are working in an office, keep coffee, sodas, and bottled water on hand for company drivers. Provide vendor meals. Do so not only for your staff but also for vendors who may be working. This simple act encourages staff relationships and builds a sense of community. Have a volunteer day. Choose a charity and get your company, vendors, and staff involved. Invite vendors to events. When appropriate, put your vendors on the guest list of an event your company is hosting. Extend an invitation to company parties. Holiday staff parties are a great way to integrate vendors into your company. 7. Repairing a Relationship with a Vendor It is possible a relationship with a vendor may strain at some point in your career. You should make every effort to repair the relationship. Misunderstandings often occur in the heat of the moment. Tempers and emotions flare at this time between two otherwise calm people. In this case, an apology in your thank-you letter may solve this matter. 7.1 Working toward a Solution: In the instance of larger disagreements, the first step to mending the working relationship is to have a meeting with your vendor. Revisit a disagreement after a few days have passed, to give both parties some clarity. Begin the meeting by addressing the problem, then listen to your vendor's side of the story. Accept your responsibility in the matter and apologize. If warranted, address any issues you may be having with your vendor, and hopefully he will return the apology and you both can continue working together. 7.2 Monetary Issues: If the matter involves a monetary issue, try and invite a third party to resolve the dispute. The third party should be someone you both have worked with and trust. Another vendor would be good choices for a third party. If the matter involves a client and a complaint, you might ask the client how he/she would like the matter resolved and recommend this to your vendor. 7.3 Knowing When to Walk Away: Sometimes a sour vendor relationship has passed the point of repair. If you www.theinternationaljournal.org > RJSITM: Volume: 01, Number: 08, June-2012 Page 32
have followed all the suggested tips for repairing a relationship, it may be time to walk away. It is best to make a clean break. Do not embellish or gossip to other vendors. A vendor can also gossip about his experience working for you. Make it a practice not to speak negatively about vendors. Simply stating you used to work with a vendor but no longer do will speak volumes to a client asking for a vendor referral. Conclusion: Although today’s reason for implementing VRM is mostly driven by cost-savings and efficiency increase propositions, Substantial improvements in efficacy and quality in different areas of Automobile Industries can be achieved. The implementation of the above mentioned vendor relationship management practices can boost the vendor response towards our own company which in turn will make him a staunch support at dire times of need. The cost of quality (or better phrased as the cost of “unquality”) resulted from imperfections of a vendor's incoming input materials is one component of the total costs in the evaluation of vendors. A well managed vendor will prove to be of great support when it comes to customer satisfaction and job shop productions in terms of cost and quality. In an automobile industry where the competition is enormous it becomes the need of the hour to have competitive and well managed vendors for developing new products at a faster pace to have a greater edge amongst the other major players. References: [1] Aberdeen Group. (2004, June). The Quiet Revolution in Vendor Management — A Benchmark Study on HowCompanies Are Communicating with and Monitoring Their Suppliers. [Online]. Available:http://www.aberdeen.com/summary/report/bench mark/suppliermgmt.asp. [2] W. Appelfeller, and W. Buchholz, Supplier Relationship Management: Strategie, Organisation und IT desmodernenen Beschaffungsmanagements, Wiesbaden: Gabler, 2005. [3] I. Benbasat, D. K. Goldstein, and M. Mead, The Case Research Strategy in Studies of Information Systems, MISQuarterly, vol. 11, no. 3, pp. 369-386, 1987. [4] T. Boland, and A. Fowler, A Systems Perspective of Performance Management in Public Sector Organisations,The International Journal of Public Sector Management, vol. 13, no. 5, pp. 417-446, 2000. [5] M. C. J. Caniëls, and C. J. Gelderman, Power and Interdependence in Buyer Supplier Relationships: A Purchasing Portfolio Approach, Industrial Marketing Management, vol. 36, no. 2, pp. 219-229, 2007. [6] M. G. Christopher, Logistics and Supply Chain Management, London: Pitman Publishing, 1992. 1992. [7] T. H. Davenport, and J. E. Short, The New Industrial Engineering - Information Technology and Business Process Redesign, Sloan Management Review [8]F. R. Dwyer, P. H. Schurr, and S. Oh, Developing Buyer- Seller Relationships, Journal of Marketing. [9] European Commission, ICT and e-Business in Hospital Activities: ICT Adoption and e-Business Activity in 2006,Sector Report No. 10/2006, e Business Watch, Bonn, Germany, 2006. *** www.theinternationaljournal.org > RJSITM: Volume: 01, Number: 08, June-2012 Page 33
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