Operating a business of any size means that you have to keep on top of dozens of important things, such as expenditures, product inventory, and yes, even vendors that sell you items you need to keep your daily business activities going. Vendor credentialing is the act of verifying a vendor and rating it in your own system so that you know how good they are to work with and whether or not you want to continue business with them. Here are three big reasons why you need vendor credentialing and why it is so important to use it.
Avoiding High Costs
Not everyone sells everything at the same price. Keeping business costs low so that you can get higher profit margins is the daily name of the game, right? The last thing you want to do is lock into a business agreement with a vendor that consistently charges way too much for everything you need, from pens to packing tape. Credentialing the vendors ensures that only the vendors that sell things at affordable and reasonable rates and/or sell unique items worth spending more for are the vendors with which you conduct business.
Credentialing vendors is a lot like "vetting" someone for a top-clearance position. You want to be sure they are the real deal, and not somebody selling found goods out of the back of a van in an alley, so to speak. When you credential a vendor, you are verifying and validating that vendor as the real deal, and that helps you avoid scams and instances of fraud, which quickly add up to costly mistakes.
Acquiring Speedy Delivery
There is always that moment when you realize that you are nearly out of printer ink and you forgot to order more, or your labels and packaging are almost nil. Similar situations could leave you high and dry if you do not have previously credentialed vendors that can ship goods to your company the fastest way possible. All you have to do then is flip through your online Rolodex of company/vendor names that can provide you with exactly what you need and ship it to you as soon as possible.
Get Started with the Right Credentialing Program
There are various software programs that can help you put your vendors in order, rate them, and then categorize them by best to least satisfactory. The programs are easy to learn and set up quickly. Companies that make these programs can even walk you through the setup.
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