True Cost of Selecting the Wrong Vendor

What is the TRUE cost if the wrong vendor is selected? It can be costly when you have searched for the right vendor, put out an offer to bid on our work and performed your due diligence only to find that the wrong vendor was selected. Below is an outline of the costs that are involved when this happens and what to do about it.

1. Cost of correcting errors caused by inexperienced couriers
2. Reduced quality of patient care
3. Preparation costs to identify, interview and select the replacement vendor
4. Switching costs to get replacement vendor up to speed
5. Re-training of staff and clients involved
6. Unproductive costs–stress of change leads to unproductive time which = loss of $$

And the biggest COST of all:  

TRUST Cost – the cost no medical organization can afford. This affects all stake holders-patients, medical professionals, departments, executive personnel, reputation and co-workers. All of whom count on the medical organization to perform consistently, accurately & on time. Your organization can’t afford for these stake holders to lose confidence due to poor performance that negatively affects patient care then to endure a second time a change is made.

Here is how to keep this from happening to your organization. Determine what the errors are truly costing you right now vs. just the invoice. Take into consideration re-work, errors, stress and reputation. Evaluate your choices based on quality first then negotiate price. In your evaluation, make the time to perform an onsite visit of the quality candidates. This is imperative because anything can be represented on paper but one short visit to the prospective vendor’s facility can tell the true story. You will see firsthand the caliber of individuals that will be serving your organization and you can validate if what they put on paper is reality and whether or not they walk their talk.

As far as negotiating price, two things are most important to a quality vendor and when satisfied will ensure the best possible rate. One is commitment from the client and the second is prompt payment. Quality vendors are looking for an opportunity to create customers for life. This means they want a promise to serve you now and in the future if the quality remains intact. A way to seal in commitment is with a fair and balanced contract that remains in force as long as the vendor is performing to your organization’s standards. If the client is willing to pay by credit card within 10 days or through ACH then the vendor will be most negotiable on price due to the promise of quick, smooth cash flow.

When the search for the right vendor is viewed as an opportunity to develop a win-win relationship then the right decision is made from the beginning and there is no need to repeat the process.

Should you have additional question or would like more information on CitySprint 1.800.Deliver, please contact Lena Flores – lflores@citysprint.com

What does it take to be acknowledged as the Employee of the Year (EOY)?  It takes dedication, a great work ethic, caring about other team members and the ability to build trust.  That describes Kim Cobb.

 Kim has been with CitySprint 1.800.Deliver in Dallas since 2006. During her tenure, she has served as Operations Manager, Quality Assurance Manager and currently is serving as both until a support team member is fully trained.  She understands every facet of the business and will step in at a moment’s notice to cover any spot.  This award is quite a compliment to Kim since her co workers voted for her as well as top management.  

 We are fortunate to have a representative like Kim Cobb.  Each morning she is reminded how much we appreciate her when she pulls in to her parking space designated especially for, “The Employee of the Year”!

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