How to Build a Vendor Scorecard That Drives Better Pricing and Service
You sign a contract with a new supplier and feel an immediate wave of relief. They promise stellar service, rapid delivery times, and highly competitive pricing. The first few months run smoothly. The parts arrive on schedule. The invoices match the quotes perfectly. Because the friction disappears, you eventually stop paying close attention to the relationship. You focus your energy on putting out other fires inside your company.
The Vendor Review You Should Do Every Six Months But Probably Do Not
You are paying for a version of a service that no longer exists. Years ago, when you were smaller and hungrier, you vetted every vendor with the intensity of a grand inquisitor. You compared every line item, negotiated every term, and demanded excellence because every dollar mattered. Today, you are busier. You have more clients, more staff, and a lot more noise in your head. Because of this, you have allowed your vendor relationships to enter a state of "set it and forget it." This neglect is costing you thousands of dollars in "lazy money"—the profit that leaks out of your business because you are paying 2026 prices for 2022 service levels.