“Beyond the Contract: How Strategic Vendor Management Supercharged Our IT Performance”
By Joel Frenette, CTO | Senior Technical Program Manager | Forbes Technology Council Member
Imagine managing IT vendors like hosting a high-stakes dinner party. If you forget to check the ingredients (vendor capabilities), overcook the entrée (overspend), or seat your guests too far apart (poor communication), you risk more than just a bad Yelp review—you risk performance issues, budget overruns, and unmet business goals.
At HairClub, we flipped that script. Strategic vendor management wasn’t just about reviewing invoices or attending quarterly meetings. It became a pivotal part of our digital transformation—and a significant driver of cost savings and enhanced capabilities.
From Vendor Chaos to Clarity
When I joined HairClub as Senior Technical Program Manager, I inherited a sprawling vendor landscape. There were overlapping services, underperforming contracts, and a lot of “we’ve always used them” justifications. Sound familiar?
Our first step was to map the vendor ecosystem and ask one simple question: Are these partners helping us reach our business goals, or just filling a line item in the budget?
Spoiler: many were doing the latter.
Through a strategic audit, we identified redundant services and initiated consolidations. For instance, replacing legacy phone systems with a unified RingCentral platform cut costs and improved call quality. Migrating from Mitel to Microsoft Teams saved us six figures annually while boosting collaboration.
The result? Over $3.4 million in annualized savings from Opex—and a streamlined tech stack aligned with business needs.
The Strategic Shift: From Cost Control to Capability Building
Cost savings are great, but true value comes from capability enhancement. One of the most transformative moments came during our migration from Cisco to AWS Connect. By aligning with vendors offering not just tools but innovation, we implemented AI features like Amazon Lex and Polly for natural language processing and real-time agent support.
Suddenly, we weren’t just saving money—we were empowering our agents and improving the customer experience.
Lessons from the Trenches: Strategic Vendor Management 101
Here’s what worked—and what I wish I knew sooner:
Treat vendors like strategic allies, not just suppliers. Involve them early in your roadmap discussions. Great partners will find ways to add value beyond their scope.
Build flexible contracts with performance clauses. Metrics matter. If a vendor says they can deliver 99.9% uptime or reduce help desk calls by 40%, bake that into the agreement.
Create an internal vendor management playbook. Define how vendor performance will be monitored, who’s responsible, and what escalation looks like. It’s your blueprint for consistency.
Diversify, but don’t dilute. It’s tempting to engage multiple vendors to “hedge your bets.” Instead, double down on fewer, better-aligned partnerships that scale with your goals.
Closing Thoughts: Vendors Are People Too
At the heart of vendor management is, well, management. But great relationships aren’t built on SLAs alone. They require trust, transparency, and a shared commitment to outcomes. That’s why I still hop on regular check-ins with key vendors—not to micromanage, but to collaborate.
Strategic vendor management isn’t just about choosing the cheapest provider. It’s about finding the right partners to help you build a future-ready IT ecosystem—on time, on budget, and with room to innovate.
Call to Action:
How are you managing your vendor relationships today? Are they a source of friction—or a springboard for innovation? Let’s rethink the vendor role, together.
