Diversifying Vendors: How to Lower Costs, Minimize Risks And Get The Best of The Best

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Undoubtedly, it takes more effort to manage multiple vendors than it does to communicate with a single vendor. It may take more time each month, and could mean more staff training. But can you imagine depending on a single vendor and having something go terribly wrong, leaving you, your organization, and your consumers without a backup plan?

If nothing else, the last year has taught us that resiliency is a crucial component in operating an organization efficiently. Sure, there will be inevitable hurdles and obstacles to overcome, which is the case for any organization. However, appropriate preparation can prevent some pitfalls entirely. In this time of uncertainty, vendor diversification is more critical now than ever before. Why? It minimizes risk and can be cost-effective too.

Minimizing Risk

When you have clearly defined your organization’s goals, you are better able to select vendors that offer the most solutions for your strategies. Knowing these goals in advance allows you to compare what each vendor offers and create a contingency plan should anything go awry. 

Lowering Costs

While the initial search for credible vendors can cost in time, this process is likely to save money later. One of the benefits of diversifying vendors is selecting the company that best supplies your needs and for the lowest cost. 

The Best of the Best

 

One of the most significant advantages of diversifying vendors, aside from protecting your organization from being left in a state of unpredictability, is being able to choose the best company for the task at hand. How often do we find one thing we love about one vendor and another thing we love about another? Rather than settling for one, this is one of those times when choosing both, or a few may be the best option.