The process of procuring goods and services for multifamily housing doesn't end once contracts are signed and the on-boarding process is complete. In fact, there is no end: as any procurement professional regardless of industry will attest to, ongoing communication with suppliers is essential to maximizing efficiency, reducing risks, and developing strong partnerships.
Partnerships being the operative word here.
It's standard knowledge for multifamily procurement professionals that fostering positive relationships with suppliers plays an important role in the success each property in your portfolio. But is it standard practice for all suppliers?
Ask yourself: Do you know everything you need to about your vendors? What about your preferred suppliers?
A lot of teams can rattle off even the most random facts about their core suppliers as if it's trivia night, but sometimes have trouble just naming all preferred suppliers that are actually under contract. That could be quite a handful. After all, there are many products and services procured in the multifamily space, including:
Just to name a few. But that shouldn't mean there's room to ignore them. It's not a good strategy and the effects can ultimately trickle down to residents.
Increase Ancillary Revenue With A National Vending Program
3 Ways Ignoring Suppliers Can Affect Residents
It's no secret that inefficiency can drive up costs. Improperly managing suppliers is cause for disruption, which results in wasted revenue. To make up for it could result in increasing rent or other fees for residents.
2. Delays & Wasted Time
If company doesn't know who to contact for something in particular, managers and corporate personnel could spend valuable time reaching out to the wrong person. For example, if a resident has an issue with the vending machine on site and brings it to the property manager's attention, but the manager doesn't realize they're part of a national vending program, he or she could waste time chasing the wrong entity.
3. Missed Opportunities
Suppliers are often trying to grow or expand into new areas of business. Keeping in touch with them can shed light on new products or services that will benefit residents, or perhaps make something less expensive.
Stay in Contact
You can stay in contact with suppliers in a variety of ways. For example, conduct routine audits or meet with them regularly to inquire about their business and what they're working on.
Greater insight and visibility into the suppliers that help you manage your multifamily housing portfolio means a greater success of your procurement department and, ultimately, better services for residents.