Vendor management is a repeatable, effective method for developing and monitoring third-party providers of goods and services. It is also a way to derive as much VALUE as possible from contracts and build mutually-beneficial long-term relationships.
Vendor management is a core competence in successful business. In a competitive marketplace, businesses must look at creative ways to extract more value from providers, while reducing risk and upholding quality.
Simply beating suppliers down on price year after year is not a sustainable strategy!
Here’s a 5-Point Checklist To Manage Your Vendors Better!
1. Spend analysis is a window into your business. Perform a spend analysis on third-party spend for one year. Is it what you expected to see?
2. Review your vendors based on the historical spend. What has changed? You may need to refocus on new or different suppliers.
3. Talk to your key vendors about continuous improvement. It’s important to open the lines of communication. Relationship building has its rewards. Adversarial vendor “relationships” help no-one so make sure you work together to resolve any issues.
4. Work on a plan for key vendors and re-look at the KPIs. Are they still relevant to use to assess and monitor performance?
5. Do you have a risk management plan? Every company has financial and operational risks. If you have one, review it based on the economic situation you are facing now. If you don’t getting one is critical.
Our Solution is Fully Managed.
Experts daily identify spending inefficiencies and potential vendor improvements. We focuses on many various processes to obtain: credits, refunds, improved rates, contract terms and conditions.
We differentiate ourselves by creating a superior spend and vendor management process aligned with a fully managed global software solution.
READY to talk to us about your Vendor Management needs?