Pivoting Providers: When Is It Time to Switch?

Managing service providers is critical to operational efficiency, but sometimes the question arises: Is it time to switch?

Whether it’s due to performance issues, poor communication, or shifting business needs, reevaluating provider relationships is inevitable. This post explores the key factors to consider when transitioning providers, offering insights on what drives successful change and how businesses can build better partnerships.

What Factors Drive the Need to Replace or Add Providers?

The decision to switch providers is often driven by performance, communication, and costs.

Poor service over time—not just one or two bad incidents—signals deeper problems. It’s crucial to monitor ongoing trends like delayed work orders, lack of proactive communication, or rising costs beyond acceptable levels.

Even with long-standing relationships, consistent underperformance must be addressed, with businesses exploring new options if improvements aren’t made.

How Do Business Models Affect Provider Transitions?

Different industries have unique challenges when it comes to managing service providers. For companies with customer-facing environments, like retail stores or co-working spaces, reliability is critical. 

Providers must maintain consistent performance to avoid disruptions. Businesses should also conduct regular check-ins and quarterly reviews (QBRs) using clear KPIs to assess vendor performance. Metrics such as first-time completion, response times, and adherence to budget thresholds can highlight whether providers are meeting expectations.

What KPIs Should Businesses Focus On?

Key performance indicators (KPIs) help track provider effectiveness. 

Response time is often a top priority, especially for time-sensitive issues. Knowing when a technician will arrive is crucial during emergencies, ensuring minimal downtime.

First-time completion rates are another essential KPI, particularly for trades like HVAC or plumbing, where a failure can cause significant disruption. 

Effective providers must also communicate clearly and meet deadlines without prompting, reducing the need for follow-ups.

Are Cold Calls Effective, or Should Providers Focus on Networking?

Cold calls are rarely the most effective way to build new partnerships. 

Many companies prefer to source providers through trusted referrals, industry events, or associations like Connex. Networking in person offers businesses the chance to meet vendors and build trust before committing to a partnership.

Working closely with property managers and landlords can also streamline sourcing. Pre-approved vendors often come with built-in advantages, such as competitive pricing and fast onboarding.

Why is Transparency Crucial During Transitions?

Transparency is a key element in successful transitions. Providers who communicate their strengths and limitations upfront help set realistic expectations and reduce the chance of service disruptions. This honesty ensures that businesses assign tasks appropriately, avoiding mismatches between provider capabilities and needs.

Should Businesses Look for Pre-Packaged Solutions or Customized Programs?

While pre-packaged solutions offer structure, the best partnerships often emerge when providers are flexible enough to tailor their services. A hybrid approach—where vendors come prepared with a plan but are open to adjustments—allows businesses to adapt solutions to their specific needs. Customization fosters trust and strengthens long-term relationships.

How Can Providers Build Stronger Partnerships?

Building authentic relationships is essential for providers seeking to establish long-term partnerships. Cold emails and generic outreach often fail to make an impact. Instead, face-to-face interactions, whether at industry events or informal meetings, are more effective. Providers should also focus on being patient and consistent, recognizing that trust takes time to develop.