The Incumbent Vendor Has Been In Place For More Than Three Years

This may just be a result of item 10 above. Either way, all the issues just mentioned are the same.

The most important issue is the paragraph about the vendor implementing profit escalators. Although I previously mentioned this, it’s worth repeating because of its cost to your company.

Every industry has many places to hide costs, and over time, vendors will typically implement profit escalators (not usually in an area that’s closely reviewed by their customers) to enhance their margins.

Things constantly change in any industry (just think about yours).

If your current vendor has been in place for more than three years, you’ll be surprised what you’ll find during a thorough review of the industry and the vendors supporting it.

Next week…Reason # 12