Join Bob McGannon for an in-depth discussion in this video Using vendors vs. partners, part of Project Management Foundations: Procurement.
- Like most everyone I know, I have a set of acquaintances…and a small group of really good trusted friends.…I don't mind hanging out with my acquaintances…when it suits me, but I don't treat them…at all like my trusted friends.…These are people that would do anything for me.…And I would do the same for them.…Vendors and partners are a bit…like acquaintances and friends.…Your acquaintance vendor can be described as a party…that makes goods and services available to you.…You work with them via a straightforward…contract or a purchase order.…
Basically, you work with them on a…transaction-by-transaction basis.…I suggest you leverage vendors when there are…several vendors who provide the same product or service.…Prices are comparable.…And you know exactly what equipment or service is needed.…I will also use vendors for resource augmentation…when I know the exact skill I need, and the resource can be…effectively managed within the project.…The benefit to a vendor arrangement is…that you'll spend less time nurturing the relationship.…
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- Define project procurement.
- Distinguish when to use vendors and partners.
- Compare and contrast building versus buying.
- Identify different types of contracts.
- List types of payment approaches.
- Test your market.
- Build and use a request for information (RFI).