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Vendor-neutrality

Published July 2020

  1. Introduction

    “Vendor-neutral describes a state in which no one vendor can control the definition, revision or distribution of a specification.” Gartner. Allowing for broad compatibility and interchangeability of vendors and technology.

    Why Does it Matter?

  2. Avoid Vendor Lock-In

    Relationships with vendors are important, however if this results in the vendor being specified, as opposed to the requirement, this is not a good result. Allowing for competitive processes, and ensuring that these are fair and equal for all participants, is critical.

  3. Gain Cost Control

    To achieve an exclusive position is a vendors dream scenario. It allows them to control the pricing and your cost base.

    It is not always possible to focus on vendors over extended periods, to ensure that they still meet your original goals. Being able to rapidly revisit a requirement across multiple vendors is critical for cost control. Allowing you to negotiate rates freely and gain leverage and control over costs.

    With an ability to regularly engage vendors to compete for your business, you keep your vendors focused on your business. Then you are free to work with any vendor and you are always in control.

  4. Flexibility to Add New Vendors:

    Vendor neutrality allows you to add new vendors and investigate sourcing options. Empowering you to control your supply base and not your current vendors.

  5. Scalability on Requirements

    As you grow and expand your business, so does your need for vendors that can meet your demands quickly. With a vendor-neutral solution, you can add products, additional vendors and grow your business leveraging a range of current and new vendors.

  6. Reporting and Dashboards

    Visibility is critical to vendor-neutrality. If you cannot see what is occurring, in terms of vendor supply, then you cannot act. Even your vendor may not know what they have supplied to you over time! It is therefore critical that all transactions are captured in terms of price and specifications. Also, setting thresholds and alerts is an essential part of remaining vendor-neutral: allowing you to monitor activity without having to generate a specific report.

    Plus, you need to ensure that contractual rates are adhered to: It is all very well to negotiate price breaks, however it is essential to monitor and know when these should be applied.

  7. How can Claritum Help?

    • In terms of specification management, as a whole, on Claritum no one user/vendor can control the definition, revision or distribution of a specification.
    • In each organisation, the purchaser or buyer is free to choose from a multitude of vendors against the specifications available or to create a specification or use a specification created by a user within the organisation.
    • Thresholds and alerts can be set and inventories monitored
    • Reports can be generated to specification level against multiple parameters and provide an insight into vendor activity.
    • Requests for quotation can be sent to selected vendors and all interactions recorded against the vendor and the requirement.
    • Category, Project or Adhoc requirements can be set up and actioned through Claritum.

    If you want to learn more about Claritum’s solution, then see the Features section of the website.

  8. Additional article of interest in this domain

Claritum Customer Case Studies

Case Studies