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Vendor Management

Manage suppliers as risk and value.

v1 business-operations curated

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---
name: Vendor Management
description: Manage suppliers as risk and value.
---
# Vendor Management

Vendors are extensions of your operations. Their failures become yours; their costs compound. Manage them as deliberately as internal capability.

## Selection
- **Total cost, not sticker.** Implementation, integration, switching cost, ongoing admin. The cheap license can be the expensive choice.
- **Concentration risk.** Single-vendor for a critical function is a hostage situation. Critical capabilities need a fallback.
- **SLA reality.** Read the SLA — what's guaranteed, what's credit-only, what's excluded. Credits don't compensate for outages.

## Ongoing
- **Periodic review.** Are they meeting SLA? Are we using what we pay for? Are there better alternatives now?
- **Exit plan from day one.** How would we leave? Vendor lock-in grows silently and becomes absolute.
- **Security review.** Their breach is your breach. Critical vendors need security assessment.