SUMMARY:
In this episode, Aaron, Ben, and Drew dive into the critical topic of managing key vendor relationships and knowing when and how to replace them. They explore the challenges of scaling with vendors who may no longer meet your business needs due to rising costs, declining quality, or strained relationships. The discussion emphasizes the importance of intentional decision-making to avoid chaos when switching vendors, highlighting the risks of knee-jerk reactions and the "unknown evils" of new partnerships.
Key points include regularly reviewing vendor costs (every six months), addressing sneaky price increases, and evaluating operational professionalism. The guys share real-world examples, like milk rotation issues and negotiating storage solutions, to illustrate the need for clear communication, coaching vendors to improve, and creating win-win scenarios. They also stress the importance of documenting processes, outlining pain points, and preparing your team for transitions to ensure smooth operations. Finally, they advise handling vendor changes respectfully, keeping doors open for future collaboration.
Minute by Minute:
0:00 Introduction
4:15 Costs above all else
8:38 Have you tried to coach up your vendor?
14:33 Have you outlined the pain points
17:04 Get it out of your brain
19:49 How to rip that bandaid off
