How do you switch vendors without disrupting your operations?

Whether or not it is time to switch your IT vendor depends on several factors, such as the vendor's performance, your changing business needs, and the vendor's ability to meet those needs. Here are some signs that it might be time to switch your IT vendor: 1. Poor performance 2. Did your business needs change? 3. Is there a lack of innovation? If your current vendor is not keeping up with the latest technology trends or is not providing innovative solutions to your problems. 4. Are you experiencing communication issues? E.g. can be a lack of responsiveness or poor communication skills. 5. Is your current vendor consistently overcharging or not providing value for the services?

Part of the assessment of needs should also include a look into the mirror at how you are managing the relationship. Does the vendor have all the tools and information needed to execute? Are their invoices being paid on time? Is there an onboarding vendor process? How are the KPIs being benchmarked and scored? If the vendor cannot meet the key KPIs for example budget, schedule, customer service, or quality. What are your non-negotiable? Can you coach the vendor up and or scale them back to improve performance until they're ready to take on additional projects?

Consider where on the spectrum of Strategic to Commodity the product or service you are sourcing lies. The answer to this question can then help to identify and prioritize what metrics will define success for a new vendor.

Before you switch vendors, evaluate your current vendor's performance to identify the areas that need improvement. Determine the reasons for switching vendors and make a list of the requirements that the new vendor should meet.

Once you have narrowed down a list of vendors schedule a meet & greet. I like to start with a video conference to meet the team & have the vendor provide details about their company's strengths & weaknesses. Ask that they share some of their recent projects including photos. This is also a great opportunity to build rapport. I will typically share our company culture guide with the vendor & our COI requirements to help ensure compatibility. Give the potential vendor a small test project. This will give both parties a chance to experience the workflow & expectations. Schedule a follow-up or site walk upon completion. All of the above will help determine if the potential vendor is the right fit for the company and vendor.

Develop a transition plan that outlines the steps required to switch vendors, including timelines, milestones, and key deliverables. This plan should be comprehensive and cover all aspects of the transition, such as data migration, training, and testing. Also, look for available tools that automate workflows to be transitioned and this helps atleast 25% of the migration effort.

The question of how to switch vendors without disrupting operations should be one that you ask yourself before you need to switch. In fact, it’s a question that should be asked before you sign the contract with any vendor. (For a large endeavor, it should be a part of the RFP process.) Even if you don’t believe that you would ever need to transition to another vendor, ask yourself to consider a worst-case scenario - What would you need from this vendor in order to transition to another? When would you need that by? If they could not help you to transition, what would be the impact to your operations? If these considerations are included in the contract, you will have a far easier time transitioning to another vendor when the time comes.

1. Soft skills count. 2. Regardless of why you are changing vendors, don't burn bridges. 3. Getting what you want and need with a vendor is accomplished by building solid relationships with them. 4. Find common interests that will form bonds and build loyalty. 5. Show genuine interest in how your contacts got where they are, what their background is, and what their personal goals are. 6. Find out about their lives outside of the office. 7. Make them WANT to meet with you and help you achieve your goals. 8. Leave the anger, finger-pointing, and frustration at the door of your office. 9. End meetings on a positive note with assigned tasks and deadlines. 10. Don't expedite a deliverable unless truly urgent. 11. Create wiggle room.

Before you consider switching vendor, leadership and stakeholders should ask these questions: 1. What are the reasons for the transition? I 2. What are the critical requirements for the new vendor? 3. What are the potential risks and challenges associated with the transition? 4. What is the timeline for the transition? 5. What are the communication requirements? 6. What is the budget for the transition? 7. What is the plan for monitoring and evaluating the new vendor's performance?