Lessons From Working With External Vendors

The contract was practically screaming at me, but I couldn’t get anyone else to hear it. A few years ago, I reviewed a vendor agreement for consulting services and three things stood out immediately: 1. The terms were completely one-sided in the vendor’s favor, with the vendor maintaining IP ownership in all deliverables we were paying for. 2. There were no financial controls whatsoever. No spending caps, no limits on fee increases, and they could raise rates whenever they felt like it. 3. The expense requirements were excessive. First-class airfare, reimbursement for every small expense, and hourly rates higher than what Big Law partners charge. So what was this contract telling (yelling at) me? That this vendor was going to overcharge us. I raised these issues with the business team, but they wanted to proceed because the work was “urgent” so never had an opportunity to negotiate and mitigate these risks. Months later, here’s what happened: 1. Mysterious consultants started appearing on calls and invoices, people never listed in the original SOW. And they increased their fees just one month after signing. 2. Invoices came in much higher than expected, quickly exceeding the budget the business had allocated for the project. 3. The business was unhappy with the vendor because the work quality didn’t justify the cost, plus there was substantial internal time spent reviewing invoices and requesting additional budget. You see, contracts tell us more than what the terms are, they tell us what kind of relationship we’re going to have. I could see it, but the business couldn’t. So u was unable to mitigate a known risk. That’s when I realized I needed to get better at communicating contractual risks to my business partners in ways they could understand and act on. In my next post, I’ll share how I turned this hard lesson into a framework that helped me get buy-in from the business team when facing similar red flags. What do you think made all the difference? #contractualrisks #businessclients #legalteam #inhousecounsel #contractreviews

One overlooked CQV risk hiding in plain sight: Document control. (And it usually shows up after the SAT.) You’re in the thick of a major validation project. FAT is complete, equipment is onsite, and now you’re preparing SAT, Commissioning and IOQ protocols… But the editable SAT documents? → You don’t have them. Because no one clarified that in the agreement. Now you're emailing the vendor (again), trying to merge FAT data manually - while your team’s on the clock and your CQV schedule’s already tight. Here’s what I’ve learned the hard way: 📌 Document control isn’t just internal - it’s contractual. For complex projects with external vendors, define the rules early: 1. Spell out documentation deliverables. Editable Word docs? PDFs? Redlines? Version history? Don’t assume - write it into the contract. 2. Clarify usage rights and IP upfront. Want to repurpose their SAT template for internal validation use? You’ll need clear permission to avoid downstream friction. 3. Use version control across teams. Internal or external, protocols must live in a central, controlled system. One wrong version in execution can invalidate a whole test run. Bottom line: Vendor docs become your validation docs. Treat them like critical assets - not afterthoughts. (And if you haven’t asked your vendor for editable SAT protocols yet… now’s the time.) 💬 How are you managing version control and documentation rights with external partners? #CQV #ValidationStrategy #VendorManagement #GMPCompliance #DocumentControl #SAT #FAT #LifeSciences #Ellab #TemperatureMatters

Two years ago a vendor I chose was really bad. Lessons learned and a playbook to choose vendors. 👇 𝟭. 𝗗𝗲𝗳𝗶𝗻𝗲 𝗬𝗼𝘂𝗿 𝗣𝗿𝗼𝗷𝗲𝗰𝘁 First, you need to define your project in writing. This will give you an opportunity to clarify the project for yourself, vet the details with your team, and share it with potential vendors. → Scope → Timeline → Budget (even if it is just an internal estimate) → Detailed problem explanation → Desired business outcomes I did this part well. 𝟮. 𝗗𝗲𝗳𝗶𝗻𝗲 𝗬𝗼𝘂𝗿 𝗩𝗲𝗻𝗱𝗼𝗿 𝗦𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗖𝗿𝗶𝘁𝗲𝗿𝗶𝗮 Stack rank the criteria you will use to select a vendor in order of priority. Score the vendor 0-10 against each criteria. This will help yo quantity your decision when it comes time to choose. → Strength of solution/team/product → Relationship fit → Ability to meet timeline → Ability to meet budget → Table stakes like: Certifications, financial health, insurance, etc. I did not vet the company's financial health. I assumed because it was an established company that they would be around. Luckily the payment terms were monthly as services were delivered. So I didn't lose money. 𝟯. 𝗙𝗶𝗻𝗱 𝗤𝘂𝗮𝗹𝗶𝗳𝗶𝗲𝗱 𝗩𝗲𝗻𝗱𝗼𝗿𝘀 Source qualified vendors for a proposal. Here are a few good places to find vendors: → From prior relationships → Referrals from colleagues → Known thought leaders or trusted brands → Boutique firms that punch above their weight I wish I would have asked around a little more. I did not consider freelancers or boutique firms. I wish I would have considered this as an option. 𝟰. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗣𝗿𝗼𝗽𝗼𝘀𝗮𝗹𝘀 During the proposal process there are a few things to watch out for: → How well do they understand the scope and the problem → Did they customize an approach to fit my specific needs → Can you speak with references → Can you speak with members of the team who will do the work → Does the price make sense? Maybe it is too good to be true or maybe it is significantly higher than other vendors. Why? This was a "funded startup" of book publishing. As a result, the price for value was great. It was significantly less than any of the other vendors I received quotes. Maybe the price was too good - and not sustainable? 𝟱. 𝗦𝗲𝗹𝗲𝗰𝘁 𝗮 𝗩𝗲𝗻𝗱𝗼𝗿 Lastly, select the vendor based on your defined vendor selection criteria. It is okay if the selection criteria evolved a bit after seeing all of the proposals, but try to be scientific about the selection. --- Just a few lesson's I've learned from a failed vendor selection. What am I missing from this list? #business #vendormanagement #cybersecurity

Deploying enterprise software for sustainability use is tough, especially when there is high uncertainity on data availability and data quality. Here are some lessons I have learnt in my journey helping Fortune 1000s deploy successfully 1. Leverage vendor's experience to plan it out This is probably one of the few times you are trying to buy software, and IT/Legal teams are usually not of best help for planning. Working with the vendor to make the plans top-notch becomes essential here. Teams who have been there done that, and have a character to walk with you in that journey sets you up for success. Remember, the sales person you buy from is different from the account manager who will execute your requirements. Ensuring you love the character of all vendor side stakeholders involved in your success, and not just chasing the brand will de risk your investment. Contact a vendor who can provide you the exact/specific use case you are looking for. 2. Start crawling before walking Enterprise solutions take an entire village to use, and sometimes neighbouring villages as well. Catering to needs of all stakeholders and early stage is fatal. Segmenting the use cases and starting with low hanging fruits helps in building confidence, among internal teams and also see a validation of your trust in the vendor. Proof of concepts is often the first approach here, but can be a waste of time as there are trade-offs with costs and speed of adoption. A better approach is to build a strong conviction with vendor and engaging full-time, breaking down the entire deployment into phases. 3. Check the delta, at every stage Measuring progress in crucial, both to ensure vendor is on the right track and internal stakeholders are informed on the progress. Finding metrics to measure in such a case can be headache and your best friend here again is the vendor. Empower the vendor to assess your problem, and let them showcase how more business value can be derived. Instead of owning the metrics, delegate them to the vendor. Play the role of ‘Consulted and Informed’ described in the RACI Matrix. You’ll see the entire process become more efficient and drive innovation. 4. Seek communication and support Enterprise software vendor relationships are almost marriages. 5-10 year commitments are needed to see the actual returns on investments. Similar to any advice by a counsellor, ensuring transparent communication and mutual support is quintessential. Having access to upper management of your vendor ensures your requirements are prioritized and business value is understood. You will never be able to put everything in a contract, no matter how good your legal team is. Choosing a team with right character and entrepreneurial spirit will make sure you are always remembered in your organization for successful outcomes. Curious to learn more? Let’s connect and I’m happy to share more case studies from my experience.