Techniques for Managing Vendor Relationships in Tech Projects

Your vendors are bleeding you dry—not money, time. After managing 100+ vendor relationships across Microsoft, Instacart, and our portfolio companies, I built a system that cuts project timelines by 70%. The problem: You think hiring experts means abdicating responsibility. Wrong. Your vendors manage 50 other clients. You're not their priority unless you make yourself one. Four Frameworks That Actually Work: 1. Deconstruct Your Blockers Don't ask "what's the update?" Ask "what specific approval are we waiting for?" Financial? Technical? Legal? You can't fix what you can't name. I've seen 6-week delays resolved in one call once we identified the actual blocker. 2. Own the Project Management Your vendors are specialists, not coordinators. Schedule the calls. Create the docs. Connect the dots. Yes, you're doing their job. It's also the highest-leverage work you can do. 3. Demand Time Boxes "We're working on it" = infinite timeline "Engineering review takes 5-7 days" = accountability Even vague deadlines beat no deadlines. One portfolio company cut deployment cycles 60% just by requiring time estimates. 4. Confidence ≠ Commitment "We're confident about approval" isn't "It's approved." Push for binary answers. This distinction alone prevents countless surprises. The Process: Monday: Status email to all parties Wednesday: 15-min sync if blocked Friday: Document decisions + next actions Rule: Never let a week pass without documented progress Real Results: Applied this to 6 portfolio companies last quarter: Project completion: 12 weeks → 4 weeks Cost overruns: Down 40% Vendor performance: Up 70% Best part? Our vendors started using our process with other clients. Advanced Play: Create quarterly vendor scorecards. Measure response time, timeline accuracy, and technical competence. Share transparently. Performance improves within one quarter. Why This Matters: Every week of delay costs runway. Every vendor inefficiency is a competitor's opportunity. The companies that scale aren't the ones with the best vendors—they're the ones who best manage them. Your Move: Pick your worst vendor relationship. Apply one framework this week. Document what changes. Vendor management isn't sexy, but neither is running out of runway because every project takes 3x longer than it should. What vendor challenges are you facing? Share what's worked (or hasn't) below. — Enjoy this? ♻️ Repost it to your network and follow Kevin Henrikson for more. Weekly frameworks on AI, startups, leadership, and scaling. Join 2000+ subscribers today: https://lnkd.in/gstGkhJF

𝐈𝐧 𝐯𝐞𝐧𝐝𝐨𝐫 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧𝐬, 𝐟𝐚𝐢𝐥𝐢𝐧𝐠 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 𝐢𝐬 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭 𝐭𝐡𝐫𝐞𝐚𝐭 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐣𝐞𝐜𝐭’𝐬 𝐬𝐮𝐜𝐜𝐞𝐬𝐬. Preparation is the backbone of every successful vendor negotiation. When you understand your costs, set clear terms, and align on value, you’re building not just a contract but a reliable partnership. Here are some of the best practices we have learned for effective vendor negotiations at Venwiz: 1. 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬: Arriving at project cost estimation through detailed cost analysis sets a solid foundation. Use methods like Zero-Based Costing for detailed estimations, apply inflation adjustments to the last purchase cost, or use weighted averages from multiple quotes. When vendors see that you know your numbers, it builds credibility and respect, setting the stage for more productive discussions.     2. 𝐒𝐞𝐭 𝐂𝐥𝐞𝐚𝐫, 𝐀𝐜𝐡𝐢𝐞𝐯𝐚𝐛𝐥𝐞 𝐓𝐞𝐫𝐦𝐬: Define concrete targets for service levels, timelines, and ceiling costs. A well-defined service agreement—including specifics like payment schedules, quality & safety standards, and warranty terms—establishes a strong foundation. This clarity avoids misunderstandings and creates a structure that supports efficient, respectful negotiations.     3. 𝐋𝐨𝐨𝐤 𝐁𝐞𝐲𝐨𝐧𝐝 𝐁𝐮𝐝𝐠𝐞𝐭 𝐭𝐨 𝐅𝐨𝐜𝐮𝐬 𝐨𝐧 𝐕𝐚𝐥𝐮𝐞: Budget matters, but so does value alignment. Quality vendors look for clients who understand this. Show commitment by offering flexibility in terms, such as adjusting payment timelines or considering future projects. If a vendor can provide an extended warranty or additional service terms, it may justify a slightly higher costs if it aligns with your project’s goals.     4. 𝐇𝐚𝐯𝐞 𝐚 𝐁𝐀𝐓𝐍𝐀 (𝐁𝐞𝐬𝐭 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐭𝐨 𝐚 𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐞𝐝 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭): Always have a clear fallback plan. A strong BATNA isn’t just a backup; it’s a powerful leverage tool that ensures you’re negotiating from a position of confidence rather than necessity. In vendor relationships, the best negotiations are built on value, transparency, and mutual respect. When both sides understand the stakes and goals, you pave the way for enduring partnerships that drive long-term results. 𝐖𝐡𝐚𝐭 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐡𝐚𝐯𝐞 𝐲𝐨𝐮 𝐟𝐨𝐮𝐧𝐝 𝐦𝐨𝐬𝐭 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐢𝐧 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐬𝐭𝐫𝐨𝐧𝐠 𝐯𝐞𝐧𝐝𝐨𝐫 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬? 𝐋𝐞𝐭’𝐬 𝐥𝐞𝐚𝐫𝐧 𝐟𝐫𝐨𝐦 𝐞𝐚𝐜𝐡 𝐨𝐭𝐡𝐞𝐫—𝐬𝐡𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐭𝐢𝐩𝐬 𝐛𝐞𝐥𝐨𝐰! #Venwiz #CapEx #Procurement

#Cybersecurity vendors: here’s a real world test of whether your team is actually listening to buyers and making the right decisions. Last week, a CISO friend tells me they can’t move forward with a particular solution because it has too few integrations, covering only a third of what they need. There are ✌️ paths for vendors to take, and this is where it usually goes wrong. Path 1: Vendors go into “objection handling mode, talking roadmap, making assurances that new integrations are coming to cover the gap. This is the most common choice: vendors making decisions based on THEIR incentives not their buyers’. So, they continue to reach out as if they’re in a legit sales motion (spoiler: they’re not), asking for meetings, more demos, driving toward sales goals on a short time horizon. 🔮 Here’s what’s gonna happen: you’ll inevitably become so annoying that you’ll transform any open mindedness about your product into ill will. Path 2: Seek to understand what’s really going on. This is NOT a tech problem. It’s a social capital problem. The CISO cannot go to the CIO and CFO and ask for budget to procure tooling that only covers 1/3 of their surface. They will look like a 🤡. ⚡️Takeaway: You cannot ask your prospect to sacrifice their credibility and political capital to meet your quota. 💡 So, now you know you’re NOT in a sales cycle. You’re in relationship management. Here’s the motion that will work better: 🗓️ Set a reminder in your CRM to check in with this CISO each quarter to provide an update. 🚀 Send them your thought leadership reports and ask for feedback 🤝 Invite them to events or on a panel to maintain engagement. Platform them as a voice. 👂 Listen/learn until such time as you can meet their needs. The faster your organization can make these distinctions the more effective and efficient you will be. TL;DR: Make sure you really understand what the objection is. Then you can make the best decision. You’re selling to people, they often don’t fit into playbooks.

Stop asking vendors to show you their product. Ask them to use it with you. Most demos look impressive because they’re designed to. But they rarely show how the system behaves when your team touches it for real. I learnt a smarter method in New Zealand: a 90-minute working session starting from nothing. No polished demo scripts, just your team, their team, and the reality of how fast you can get to value. This exercise has saved me months of configuration pain and vendor regret. It’s fast. It’s honest. And it reveals truths that would normally cost you months (and a small fortune) to learn the hard way: - How intuitive the platform really is - How the vendor collaborates under pressure - What becomes configuration debt - How fast you can get to actual value This is just one of the practical, real-world methods that helped me oversee more than $750M in IT procurement and navigate major shifts in the enterprise software market. Let’s connect if you want more practical GRC and AI techniques to help your team make better decisions. I’ll be sharing plenty more as the #AIGRCGuy!

Every so often, this needs to come back up to the top. Kindness, empathy, fairness, respect, that's how things get done............... "That guy probably lost his job over the deal I made him take to get any of my business." "They lost money on me with that one!" Sounds familiar, doesn't it? If you're an IT or procurement professional, vendor calls, special deals, and other promotional activities are part of your everyday routine. You need these vendors for products and services to do your job correctly. These quotes are real-life comments from networking events, where people take pride in how they pushed (or bullied?) a salesperson into a deal that might not be favorable for them. They see this approach as their strategy for all vendor interactions. But is this really the way to manage vendor relations, or any interpersonal relationship? I get it. As a leader with budgets and projects, your job is to achieve goals as cost-effectively as possible. However, remember that the person on the other end also has a job to do - secure business and maximize profit for their company. At first glance, these two objectives may seem mutually exclusive, but there's one factor that can unite them: Respect. Those earlier quotes reflect a glaring lack of respect for individuals. For success, you need to build business relationships, no matter your department or role. Being a successful leader means establishing trusted business relationships with your vendors and vice versa. This two-way street is only navigable when both parties respect each other, their financial needs, and their jobs. As a tech leader, when negotiating for non-standard, non-commodity products or professional services, it's crucial to know your budget, have a rough idea of costs and know was “success” is. If you're not familiar with these details, you're not ready to negotiate with vendors. From the vendor's side, they must be aware of their delivery capabilities, products and services, and required profit margins. Although you can get the lowest price by berating a vendor, consider the long-term cost. Will they help your project succeed? Will they go an extra mile for you? I've been successful in my projects because I take time to also understand my vendor's needs. If they cannot meet my requirements within my budget, I respect them enough to say so upfront, saving everyone's time. The outcome? I've had vendors pick up the phone on a major holiday, send items overnight via private couriers at no extra cost to me, provide same-day part deliveries during a critical outage, and without my ask, cut prices on one-off items when I'm in a budget crunch. All because I've respected their needs and their business. Sure, I might have spent a small bit more, but the results affirm it was worth it. My challenge to you is simple: Treat your vendors with respect, and see how your projects streamline and your partnerships flourish.

Before you kick off that outsourcing project, systems integration, or digital transformation -- pause and think. Two critical principles will make or break your initiative: - First: Your vendors will sell into the environment you establish during procurement. They'll adapt to whatever culture, processes, and expectations you set, for better or worse. - Second: The best vendors are sitting on millions of dollars worth of expertise and battle-tested insights. When they're genuinely invested in your success, they'll bring that intellectual capital to the table. Most organizations miss the connection: You only unlock that second principle by getting the first one right. And it starts before the RFx goes out. If you don't create an environment of trust and candor from day one, that expertise never shows up. If you treat procurement as a test, your vendors learn to play defense. They'll craft the perfect proposal, say the right things, and then deliver whatever you happen to ask for. But if you approach procurement as a learning vehicle, a chance to drive true alignment, and a genuine two-way discovery process, you signal that you value candor and that partnership matters. That dynamic carries forward and can make or break execution. During execution, this discovery and alignment will result in your new partner bringing its A-game, sharing insights proactively, challenging your assumptions, and investing their best thinking into your shared success. This requires them to be deeply vested in the outcomes, and that takes active, thoughtful engagement. Ask the hard questions. Challenge assumptions. But do it in a way that creates space for candid dialogue. Difficult conversations handled with transparency are worth their weight in gold. This isn't overhead. It's an investment in outcomes for you AND your new partner. Are you maximizing the ROI on your vendor relationships, or sacrificing long-term value for short-term "transaction efficiency"? #TransformationEnablement #NegotiatingForHumans #LobsterSox

There are two ways to run a channel program, but only one of them has a future. Most vendors, especially large brands with market leverage, fall into the trap of Approach 1: The Extractor. Their mindset is: "What can this partner do for ME?" You know this program when you see it. It feels like a one-way street. They believe the partner needs them more than they need the partner. They dictate terms, demand complex forecasts, and treat partners like coin-operated sales reps. It’s transactional, it’s arrogant, and it’s counter-productive. Then there is Approach 2: The Enabler. These vendors flip the script. Their starting point is: "What can WE do for our partners?" They understand that the partner has their own business model, their own P&L, and their own goals. Instead of forcing the partner to adapt to them, they align their solution to fit the partner's existing motion. To win in 2026, you must aggressively shift from Extractor to Enabler. Here is how you do it: 👉 Understand their Business Model: Don't just train them on your product features. Learn how they make money. Service revenue? Managed services? Hardware pull-through? If you don't know, you can't help. 👉 Align, Don't Disrupt: If your sales process conflicts with how they sell to their customers, you are just adding friction. Adapt your operational requirements to smooth out their road. 👉 Enablement over Demands: Stop nagging for pipeline updates if you aren't providing the resources—marketing funds, pre-sales engineering, and leads—to help build it. 👉 Define Shared Success: Move beyond "meeting quota." Build a joint business plan where your technology is the lever that helps them achieve their company goals. When you help your partner be more successful, your revenue becomes a byproduct of their growth. Stop extracting value. Start adding it. #ChannelStrategy #Partnerships #B2B #GrowthMindset #PartnerSuccess

One sentence changed a supplier relationship. 2018, I was running a QBR at Nestlé. The vendor missed 3 KPIs in a row. My instinct? Pull the data. Show the gaps. Demand a recovery plan. Instead, I opened with this: "I know your team is stretched. Tell me what's getting in the way." Silence... Then the supplier's account director started talking. Within 40 minutes, we found the root cause. Within 2 weeks, all 3 KPIs were back on track. Within a quarter, they became a top performer. No threats. No penalty clauses. No escalation. One question, asked with empathy, did more than 6 months of scorecards alone. The best SRM professionals use persuasion every day without calling it that. Three tools I come back to in every supplier conversation: • Credibility: Show you understand their world, not yours. They listen when they trust your judgment. • Data with context: A scorecard without a conversation is a spreadsheet. Pair every metric with "and this is why it matters to both of us." • Empathy before expectation: Understand their pressure before you add yours. Suppliers who feel heard perform better. Compliance creates minimum effort. Commitment creates maximum VALUE. The difference between the two is how you lead the conversation. P.S. I teach this in my SGAR Framework, where Governance and Relationship work together to drive real supplier performance. Curious how your vendor conversations would change? Comment "QBR" below and I'll send you my free QBR prep checklist.

Flow-down risk has always been a challenge in supply chain contracts. But has become a more urgent issue with AI contracts. The fast pace of change and the lack of contracting leverage make this a tough risk to manage. Flowing down obligations to a vendor requires that we make sure our AI product vendors are complying with the restrictions and obligations we agreed to with our own customers. That means if we agreed to deletion in 30 days, the vendors we use to provide the service to the customer must do so as well. In our dream world, that would happen for all our contractual relationships. But we live in the real world with good-enough contracting and managing impossible risks. So if we can't create a perfect flow-down world, where should we prioritize our efforts? This will always be a "it depends" answer, but here are my four critical areas: 1. Definitions - We have to make sure that the defined terms used in our customer obligations match the obligations made to us by our vendors. Pay attention to the specific definition language, any carve-outs, and what data types are covered. Make sure your vendor contracts are mirroring those. For one-to-one flow downs (meaning the vendor’s scope is limited to one customer), use the exact same language. 2. Data Deletion Requirements - Vendors interpret "delete your data" differently. Does it mean permanent erasure? Within what timeframe? From all systems including backups? Rather than assume they understand, make it verifiable by requiring an affirmative confirmation of deletion within 30 days of written request. 3. Data Usage - Be explicit in your vendor contracts about data usage limitations. Decide if it is worth adding any special or unique customer requirements in your standard vendor contracting documents. It may be easier to remove it from your standard terms when it doesn't apply than to affirmatively insert it each time it does. 4. Security Standards - Make sure that the security frameworks you require in your vendor contracts align with what customers require. When the customer requires an updated or different standard, make sure that is passed down to your vendors too. What others should be added? Which are your top four? #Contracts #AIContracts

Buyers and sellers negotiate across the table. That’s how procurement typically works: price, specs, timeline, risk management - often with an “us vs. them” mindset. Established players with more resources nearly always win. Deals for earlier stage tech often die, especially when the risk appetite of the buyer is low. What if, well ahead of the procurement phase, they worked around the table instead? That question led to the formation of the Telecom Infra Project (TIP) when I was at Meta more than a decade ago. Telecom infrastructure innovation moved slowly, and startups struggled against entrenched players. Procurement cycles sometimes dragged on for years, burning most if not all of the capital of uncountable start-ups. Inspired by the success of the Open Compute Project Foundation (OCP) in data center tech, TIP brought telecom ecosystem players together to collaborate well before procurement began. Vodafone, Telefónica, Deutsche Telekom, Orange, AT&T and other large global operators, small and large infrastructure providers, innovators building new approaches — all under the moniker “Together We Build”. We created project groups — or “mini ecosystems” — for every part of the telecom infrastructure stack. These groups defined specs collaboratively. Buyers and sellers across hundreds of different companies aligned on what solutions needed to achieve. Tech was validated together instead of through separate evaluation processes. That framing shift mattered enormously. Corporate partners became collaborators solving shared infrastructure challenges, not buyers evaluating vendor proposals. This new mindset opened dialogues that bilateral negotiations could never produce. Some TIP initiatives succeeded. Others went nowhere. Many are still charging ahead. But the effort accelerated innovation across the space because community collaboration drives progress in ways transactional relationships simply cannot. I use that model at Gigascale Capital now, bringing portfolio companies and corporate partners together early — especially during the discovery stage. Framing discussions around learnings and collaboration instead of immediately jumping into sales pitches and negotiations. Building relationships around the table, where new technologies can advance together. Ensuring that the playing field for innovation to thrive is set up for success.