Streamline your vendor management
This is the third installment of the three-parter regarding the profitability of translation businesses. The previous parts dealt with the importance of measuring and tracking your performance in order to identify the bottlenecks of your processes and how to translate improved efficiency into improved sales. Vendor management can be regarded as one of the most important tasks of a translation agency. After all, the core of the business resides in the effective reselling of the work of your vendors, as a result, any inefficiencies in managing them must have a direct impact on your bottom line and your results. While usually, the crucial task of managing your vendors is handled by a dedicated specialist, the question remains if they have the proper tools for the job and makes the informed decision based on hard facts. Applying proper management techniques can leverage your database to the best possible effect. Some of those techniques are:
- Improving the process overhead costs. By putting in place strict procedures for vendor assignment, we get better response times and more efficient selection mechanisms.
- More detailed selection mechanisms, lead in turn to more efficient utilisation of your database. Also, thanks to adhering to strict specialization matches, the quality of your final work will be much higher.
- By selecting a wider set of vendors than the usual “favorites”, your company gains better rate negotiating power, a more diversified approach to quality, verifies a richer list of vendors, effectively often increasing the number of trusted cooperating vendors and helps with flexibility.
- Last but not least, having a more formal and detailed assignment procedure, helps with not “playing favorites” and prevents burnout in your most trusted vendors.
Hard data, that presents an in-depth and comprehensive overview of a vendor past performance, should be the base of your selection mechanism. That should flesh out all inefficiencies, places where both quality and margins can be improved. And as the sheer amount of demand for language services is on the rise, it is followed by requests for more diversified services. One of the aspects that becomes more diversified is the approach to quality. As speed is becoming more and more crucial, Language Service Providers start to take a portfolio approach to quality, allowing for a much wider range of available options to their customers.