Replacing Vendors Impacted by COVID-19
The world is always changing, even though sometimes it goes unnoticed. In the last year, we can’t help but notice the occurrence of a significant amount of change. Historians will debate in the decades and centuries to come as to what the major impacts of the pandemic and accompanying phenomena will be. Even so, some of the changes are more immediate, visible, and acute, beckoning a quicker reaction to mitigate and resolve any negative effects.
One such change is the economic devastation. Businesses around the world are still closing their doors permanently because of government-mandated lockdowns and other health regulations that keep them from continuing to transact. This impacts consumers but also poses a challenge for businesses who may have engaged other vendor firms that are now completely unable to survive or are impacted such that their ability to fulfill prior services is severely limited. For these client companies, how do they approach replacing a partner organization?
Reassess Your Needs
Replacing a vendor may seem like an inconvenience but could pose a significant opportunity for your company. Your company has likely changed since engaging with the prior vendor. As you guide your own business into the new world order, you may recognize that you need vendors with different capabilities that enable you to expand in a society favoring social distancing and contactless purchases. Perhaps you want to increase your online presence and improve a consumer’s experience as they interact with your company more remotely. There may also be mandated protective equipment and cleaning supplies that you now have to source. All of these are factors to take into account as you think through replacing a lost vendor.
All of this can be overwhelming as your think through how to adapt your vendor portfolio to the new environment. Collective Insights can help you navigate this process of requirement gathering and future state planning to set you up for success as the economy recovers and rebounds.
Scouting a New Market
Even if you can figure out what you need in a new vendor, it may be hard to find good candidates with healthy business models in a time of crisis. What at first appears as a challenge could turn out to be an opportunity and a benefit. Vendor candidate companies transacting during COVID-19 who are able to continue their operations in spite of the pandemic are the kinds of partners you want as you rebuild business into the new normal. Finding vendor partners that fit this profile may be a challenge, but it’s worth the effort as the result could be a partner that will propel your company to future success as we emerge from this unprecedented time. Collective Insights understands what it takes to be successful in the current marketplace and can help you select the best firms to consider for a partnership.
Defining a New Relationship:
Your agreement with your prior vendor may have been good enough in the past. Things are changing, though, and you probably need some new language in your contract. From distancing requirements and contactless transactions, to shorter terms and more freedom to end the agreement, your relationships with your vendors are going to change as a result of the new normal. Of course, the new rules of engagement are changing all the time and constitute somewhat of a frontier for companies pioneering in the middle of a global crisis. Whereas you may have favored a well-defined contract before, now it may be more appropriate to allow greater flexibility on both sides as you continue to adapt. Collective Insights can help you blaze the trail for your company and find the path of prosperity and security. Learn more here.
Summary
This is a challenging time for many businesses. The disruption caused by the pandemic has been economically impactful and the effects are difficult to comprehend. Even so, as your business continues to operate and transact, it may be worth thinking through how the crisis could be an opportunity and what you can do to drive success as we all move into the new normal.