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Vendor Selection the Wrong Way

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After a week of ERP, I thought this was a humorous way to select a vendor. There are times that I can difinitively say “that’s wrong” and this is one of them.

The premise of this vendor is that small and medium sized vendors would do better with a regional or local payroll provider as opposed to a national vendor like ADP, Paychex or Ceridian. It’s entirely possible that you’d get better service, but do you really trust non-national vendors with your tax filing, garnishment processing and banking services? Perhaps it’s my large market bias playing here, but I’d rather have a large company processing my employee’s paychecks.

The second concern I have is the premise that the quote is the dominant feature. Rather than looking at the actual service levels and quality of process, you’re trusting your (and your employees) money and compliance to a small provider for only a quote.

Sure, if you have 100 employee,s vendor selection takes a different shape, but this vendor states they will support companies up to 10,000 employees. I’m not sure I’d use this vendor selection methodology past 250 employees, let alone 10K.

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