6 Tips for Better Vendor Management & Communication

Have you ever felt like your vendor is working on a different project, or planet, to you? Missed deadlines, blame games, and lack of alignment are more common than they should be.

When project vendors are left out of your day-to-day flow, the results can hurt your timeline and your team’s morale.

After years in project delivery and leading system implementations, I’m convinced that the true magic happens when you bring vendors into your project team from day one. Your vendor relationship can mean the difference between a project that drags and one that delivers. This shift is the heart of effective vendor engagement.

Why Vendor Partnerships Matter?

A whopping 95% of organisations that adopted structured partnering with vendors reported measurable improvements in communication and cooperation, leading to fewer claims and higher satisfaction across the board.

1. Alignment Before Action

We spend hours hammering out agreements, but the truth is, no one ever wants to dig them out again. Real progress comes from a shared purpose, not a page of clauses.

Presenting vendor partners with a clear picture of “who’s who,” why the project exists, and what genuinely matters to the business sets the stage for engagement.

Staying focused on the business benefits—not just the features or the finish line—is ultimately the bigger win for the client and business team. A strong vendor communication plan, built early, helps prevent missteps later on.

According to recent research, organisations that embraced a more adaptive, aligned approach—particularly with vendor involvement—were 30% more likely to deliver projects on time and within budget, especially when the work was tied closely to business value and sponsor support.

2. Creating a Shared Understanding of Success

Kicking off projects with a joint session of what success looks like is something we like to do (when we can). Getting every stakeholder (internal and external) to describe success (in their own words) is revealing.

Sometimes, “stealth” expectations surface that would derail the project down the line. Addressing these upfront means fewer surprises and a more cohesive team. This is also a key phase in the vendor onboarding journey and lays a foundation for managing vendor relationships well.

3. Agreeing on Ways of Working Together

The best vendor partnerships are co-designed. We usually start by asking vendors how they want to work, then agree together on:

• Where project info is shared (and when)

• How escalation and decision-making will happen

• How to flag issues, who owns each deliverable, and how success is measured

Including vendors in daily or weekly meetings and letting them connect directly with stakeholders (instead of funnelling through a middleman) transforms them from outsiders to insiders and builds true collaboration. This kind of clarity enhances project management communication and helps refine the vendor selection process over time.

4. Accountability and Belonging

Vendor relationships thrive on more than status calls. We need mutual accountability and clear commitment on both sides. Vendors must feel their contributions are recognised, that they’re part of the wins, and that their opinion counts when solving problems.

Early joint wins (no matter how small) set the tone. Continuous feedback, co-location (when things go sideways), and open communication all help vendors feel invested and responsible for project outcomes.

Data shows that joint governance and clear accountability structures reduce value lost to misaligned vendor decisions by up to 50%. Projects with high accountability also achieve higher continuous service improvement and deliver clearer results. It’s one of the key differentiators in vendor relationship management best practices.

5. Facing the Tough Stuff Together

Sometimes, things don’t go to plan. Maybe the vendor smashes the easy stuff but struggles with the trickier parts.

When deadlines slip and frustration mounts, embedding yourself in their world (even by sitting in their office a few days a week) can rebuild trust, reveal roadblocks, and open transparent dialogue.

It doesn’t solve everything; but it humanises the relationship and shows the client the real obstacles. If you’re wondering how to manage vendor relationships during high-stress periods, start by stepping into their environment.

6. Keeping the Momentum Alive

Regular check-ins, short feedback loops, and clearly documented accountability agreements prevent projects from stalling.

Early momentum energises the team, aligns efforts, and encourages vendors to proactively solve problems, rather than react to crises. Vendors want customers who are open, collaborative, and interested in creating opportunities for mutual success.

Momentum is also maintained when leaders understand the balance of quality vs quantity in communication in project management—not every update needs to be long-winded, but it must be meaningful.

If you’re ready to make your next systems project smoother, faster and more rewarding, it’s time to go beyond the contract and start building partnerships that deliver.

If you’re ready to onboard vendors in a more strategic, data-driven way, schedule a tailored vendor onboarding session today.

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