When you rely on one party.
WHAT DEPENDENCY MEANS
Being unable to operate, or to switch, without substantial cost.
WHAT CREATES IT
Single sourcing Bespoke arrangements Integrated systems Long contracts with severe exit terms Knowledge held only by the supplier
WHY IT MATTERS
It removes your negotiating position and creates a single point of failure.
WHAT TO IDENTIFY
Which suppliers you could not replace quickly.
WHAT TO ASSESS FOR EACH
What happens if they fail How long replacement would take What it would cost
WHAT TO DO ABOUT CRITICAL DEPENDENCIES
Identify alternatives, and qualify them.
WHAT QUALIFYING MEANS
Establishing that they could actually supply.
HOW
A trial order, or a documented assessment.
WHAT ELSE REDUCES DEPENDENCY
Splitting volume between two suppliers Retaining knowledge internally Avoiding proprietary arrangements Ensuring you hold your own data
WHY DATA MATTERS
A supplier holding data you cannot extract controls the relationship.
WHAT TO ESTABLISH BEFORE ENGAGING ANY SERVICE PROVIDER
How you would leave, and what you would take.
WHAT TO PUT IN THE CONTRACT
Return of data, in a usable format, on termination.
WHAT TO AVOID
Long exclusive commitments early in a relationship.
WHAT TO REVIEW ANNUALLY
Your dependencies, and what has changed.
