Are your Partners/Vendors Ready for Mistakes

You must understand whether your network of partners and vendors are able to bounce back from a mistake. If you have a miscalculation which forces you to change course in the middle of your pre-launch build-up, will your vendors be able to reverse course as quickly as you?

Thumbs UpTry this: Constantly review your vendor base. If you’re dealing with tech vendors, understand if you’re locked in to certain platforms or software. When dealing with commodities, hedge your risk, whether that means buying options contracts when purchasing large amounts of valuable commodities, such as fuel, or it simply means purchasing smaller cheaper inputs in small batches so as to make sure you aren’t oversupplied (and left with excess inventory).

Thumbs DownAvoid this: Don’t cut vendors out of the loop. Just like employees, they want to know what is going on. Don’t assume that just because they’re getting paid, they’ll continue to do their jobs. At the same time, don’t be afraid to walk away. It may be that some of the relationships your in are causing you to have these mistakes and cost overruns.

 CONTINUE TO Are your Employees Ready to Deal with Mistakes…

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