{"id":1873,"date":"2018-04-04T00:00:00","date_gmt":"2018-04-04T00:00:00","guid":{"rendered":"https:\/\/devicemagic-dev.peaktwo.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/"},"modified":"2021-08-13T14:44:43","modified_gmt":"2021-08-13T14:44:43","slug":"4-simple-ways-to-improve-construction-vendor-management","status":"publish","type":"post","link":"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/","title":{"rendered":"4 Simple Ways to Improve Construction Vendor Management"},"content":{"rendered":"<picture><source srcset=\"\/wp-content\/uploads\/2021\/05\/AdobeStock_158804224-1-1-scaled.webp\" type=\"image\/webp\" \/><source srcset=\"\/wp-content\/uploads\/2021\/05\/AdobeStock_158804224-1-1-scaled.jpg\" type=\"image\/jpeg\" \/><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/05\/AdobeStock_158804224-1-1-scaled.jpg\" width=\"840px\" alt=\"AdobeStock_158804224 (1)\" \/>\n<\/picture>\n<p>Managing vendors is an important part of operations for construction companies. But what happens when someone drops the ball? If a vendor is late in delivering bricks, concrete or electrical supplies, what happens to your productivity and project timeline? The project may face delays or grind to a complete halt.<\/p>\n<p>When managing a variety of different vendors, it&#8217;s critical to collect and track the right data to understand if things are working as they should or if you need to find a replacement.<\/p>\n<p>Don&#8217;t let a project get stalled because you&#8217;re using the wrong vendor. Try these tips to proactively manage your vendors.<\/p>\n<p><!--more--><\/p>\n<h2>1. New Vendor Onboarding Process<\/h2>\n<p>When a new vendor starts working with your construction company, how do they learn your expectations? If you answer \u201cthrough trial and error,\u201d think again. There is a better way to guide your new vendors.<\/p>\n<p>Use an onboarding process that includes providing the following information:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li><strong>Contacts:<\/strong> We recommend identifying your primary business contact and an alternate contact in case the primary person is on vacation.<\/li>\n<li><strong>System Access:<\/strong> If you ask vendors to use your project management platform, gather any required information here to get them set up on your platform.<\/li>\n<li><strong>Vendor Reports:<\/strong> If your contract requires the vendor to submit reports, explain how the vendor will deliver them.<\/li>\n<li><strong>Communications:<\/strong> Provide an overview of your preferred communication process for vendors (e.g., weekly status calls and other points)<\/li>\n<li><strong>Security Access:<\/strong> Ask the vendor to provide a list of the individuals who will need access to your construction sites so you can arrange access for them.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2>2. Use Vendor Scorecards to Evaluate Performance<\/h2>\n<p>With <a href=\"https:\/\/hbr.org\/2004\/12\/building-deep-supplier-relationships\" target=\"_blank\" rel=\"noreferrer noopener\">long-term vendor relationships<\/a>, taking the time to periodically measure a vendor\u2019s performance makes sense. This is a process to identify problems early and ensure you are consistently managing all of your vendors.<\/p>\n<p>Gather the following information about your critical vendors on a quarterly basis using a scorecard:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li><strong>Customer Service:<\/strong> Ask your staff to rate the vendor regarding customer service performance. In addition to a rating, gather comments and examples as well.<\/li>\n<li><strong>Operations:<\/strong> Evaluate your vendor based on their operational performance, such as timeliness, quality of materials and following your specific requirements.<\/li>\n<li><strong>Safety:<\/strong> If a vendor fails to follow your safety requirements, including <a href=\"\/blog\/update-your-safety-inspection-report-process-step-by-step\/\">completing any safety reports<\/a>, everyone is in danger. Make sure you evaluate vendor performance on safety to avoid an accident or tragedy.<\/li>\n<li><strong>Change Requests:<\/strong> Sometimes, life does not go according to plan. Evaluating vendors on their flexibility and ability to deliver on change requests matters.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>If multiple people work with the vendor, send the vendor scorecard to several people on your team and analyze the results.<\/p>\n<h2>3. Gather Vendor Data for Financial Planning<\/h2>\n<p>Vendor-related costs tend to be a large line item in construction budgets. Gathering data about vendor costs as part of an annual or semi-annual benchmarking exercise will help you to determine if the value and pricing you have is acceptable.<\/p>\n<ul style=\"list-style-type: disc;\">\n<li><strong>Choose the Most Significant Item the Vendor Provides:<\/strong> Your vendors probably supply multiple items. To simplify the analysis, focus on one item at a time (e.g., crane rental or concrete).<\/li>\n<li><strong>Collect the Pricing Structure:<\/strong> Ask the vendor to provide their pricing structure.<\/li>\n<li><strong>Identify Any Discount Opportunities:<\/strong> Some vendors provide a percentage discount for large volume orders. If that situation applies, take note of it.<\/li>\n<li><strong>Gather Information on Service Standards and Guarantees:<\/strong> While it is tough to analyze this information in a spreadsheet, it is smart to have a record of it.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2>4. Create Records for Vendor Failures<\/h2>\n<p>Nobody looks forward to a vendor failure in construction. If you can learn a lesson from experience, your company can improve in the future. When a vendor fails to deliver and causes a significant problem, you need to understand why it happened. Develop a process to gather the following data:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li><strong>Identify the Vendor:<\/strong> Start by clearly identifying the vendor associated with the problem.<\/li>\n<li><strong>Describe the Impact:<\/strong> What was the consequence of the failure financially and otherwise? For example, negative press coverage over missed deadlines would qualify as an impact.<\/li>\n<li><strong>Vendor\u2019s Explanation:<\/strong> Note down the vendor\u2019s explanation of the cause of the problem.<\/li>\n<li><strong>Your Company\u2019s Oversight:<\/strong> What was your company doing or failing to do that contributed to this vendor failure? You may have given poor direction to the vendor.<\/li>\n<li><strong>Action Plan:<\/strong> Finally, what steps can you take to prevent this type of vendor problem from occurring in the future?<\/li>\n<\/ul>\n<p>Follow these steps to improve both vendor management and performance, and set your construction company up for successful long-term supplier relationships.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Managing vendors is an important part of operations for construction companies. But what happens when someone drops the ball? If [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":3800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-1873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>4 Simple Ways to Improve Construction Vendor Management - Device Magic<\/title>\n<meta name=\"description\" content=\"Managing vendors is an important part of operations for construction companies. It&#039;s critical to collect and track the right data.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 Simple Ways to Improve Construction Vendor Management - Device Magic\" \/>\n<meta property=\"og:description\" content=\"Managing vendors is an important part of operations for construction companies. It&#039;s critical to collect and track the right data.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/\" \/>\n<meta property=\"og:site_name\" content=\"Device Magic\" \/>\n<meta property=\"article:published_time\" content=\"2018-04-04T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-13T14:44:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.devicemagic.com\/wp-content\/uploads\/2018\/04\/AdobeStock_158804224-1-1-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"840\" \/>\n\t<meta property=\"og:image:height\" content=\"561\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Caroline\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Caroline\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/\"},\"author\":{\"name\":\"Caroline\",\"@id\":\"https:\/\/www.devicemagic.com\/#\/schema\/person\/932f4cf152b99218aeffb1ba73e12e10\"},\"headline\":\"4 Simple Ways to Improve Construction Vendor Management\",\"datePublished\":\"2018-04-04T00:00:00+00:00\",\"dateModified\":\"2021-08-13T14:44:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/\"},\"wordCount\":766,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.devicemagic.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.devicemagic.com\/wp-content\/uploads\/2018\/04\/AdobeStock_158804224-1-1-scaled-1.jpg\",\"articleSection\":[\"Construction\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/\",\"url\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/\",\"name\":\"4 Simple Ways to Improve Construction Vendor Management - Device Magic\",\"isPartOf\":{\"@id\":\"https:\/\/www.devicemagic.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.devicemagic.com\/blog\/4-simple-ways-to-improve-construction-vendor-management\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.devicemagic.com\/wp-content\/uploads\/2018\/04\/AdobeStock_158804224-1-1-scaled-1.jpg\",\"datePublished\":\"2018-04-04T00:00:00+00:00\",\"dateModified\":\"2021-08-13T14:44:43+00:00\",\"description\":\"Managing vendors is an important part of operations for construction companies. 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