When deciding whether to replace or hang on to an existing vendor, answer the following questions first:
- Are there a sufficient number of alternative suppliers?
- Can they deliver to your standards and quality?
- How important is the particular item or category to your business?
- Are you giving your vendors constructive feedback?
- Is your existing supplier willing to improve?
Should you decide to bid your supplier farewell, be sure to follow the proper processes and stick to the contract terms.
Also, ensure that the transition does not cause disruptions to your supply chain.