Is my vendor relationship salvageable, or should I go to bid?

the SBA Team

A: Start by asking whether the issues are fixable or fundamental. If service gaps stem from breakdowns that can be addressed with the right structure and accountability, vendor recovery may be the better path. But if your vendor has lost your trust or can’t meet your long-term needs, it might be time to move on. SBA can help you make that determination.

When vendor issues begin to distract your HR team or trigger frequent employee complaints, it’s natural to question whether the relationship is still viable. While going out to bid may seem like the most straightforward fix, it often introduces new challenges—such as implementation costs, data transition risks, and potential service disruptions.

That’s why it’s worth considering vendor recovery first. This structured, third-party-led process identifies root causes on both sides and puts a plan in place to restore performance and rebuild trust. When it works, recovery can stabilize the relationship without the disruption of a full vendor transition.

However, not all relationships are salvageable. If your vendor consistently misses the mark, avoids accountability, or can’t align with your evolving needs—even after corrective efforts—it may be time to go to bid.

Tags: vendor management/recovery, vendor search/RFP process