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Vendor Management Roles to Drive Business Value

Organizations should clearly define sourcing, procurement and vendor management (SP&VM) roles as well as shared objectives. In doing so they unlock efficiencies and maximize the contribution of their technology vendors.

Improper management leads to duplication of accountabilities and capability gaps and overlaps, which can result in increased costs and missed business opportunities.

“By collaborating effectively, SP&VM functions can work toward common objectives, and transform from inward-focused teams to a combined outward-focused group that is engaged and motivated to work together to meet the future challenges of the organization,” says Luke Ellery, research director at Gartner. ( Resource)

Gartner estimates that organizations spend an average of 62% of their technology budgets on vendor products, services and outsourcing.

Sourcing, procurement and vendor management are disciplines that must align with the most available souring options to allow the business with the speed and agility to grow. This alignment must be accomplished in all vendor industries especially technology where markets are rapidly growing. All markets must be continually evaluated, revised and measured against changing business priorities, market disruptions and new opportunities.  Engaging with potential vendors, negotiating with them, buying from one or more of them in the same industry to facilitate transitions between vendors when a replacement decision needs to be made in order to ensure performance and achievement objectives and quality of service are maintained. Vendor management is not a one-time event, but rather an ongoing management function.

Setting the ground rules for vendor engagements outlines the frameworks and policies for effective governance.

The three disciplines of sourcing, procurement and vendor management have to be clearly outlined, roles and responsibilities documented, and work together to plan and execute these objectives.

How to Maximize the contribution of all vendors

Organizations rely on vendors to achieve operational and strategic objectives. Gartner estimates that organizations spend an average of 62% of their technology budgets on vendor products, services and outsourcing. SP&VM leaders must efficiently collaborate to generate value through technology and as well as all organizational vendors. They should have consistent and appropriate interfaces with other departments and functions that have decision rights over the use of vendors in the organization.

Growth of digital business and need for new vendors

Digital business further underlines the need for SP&VM to work in harmony. Gartner’s 2017 CIO Agenda reveals that digital ecosystems will be a strategic priority, increasing the need for new vendors with enhanced digital capabilities. SP&VM leaders must be proficient in digital solutions that support these capabilities and processes.

Vendor Management gaps, overlaps and inconsistencies need to be identified as critical deficiencies and addressed. In doing so, successful SP&VM leaders will ensure a comprehensive, collaborative approach in order to realize more efficient, cross-discipline and vendor management processes that deliver strategic business outcomes.

For a balanced and effective whole, SP&VM leaders must act as equal partners, respect the authority of each domain and recognize that the value contributed together achieves real business value.

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With LIMITLESS, Vendor Management Solutions, we partner with each member of your team so they feel confident they can maintain the overall control, won’t lose the vendor relationships they value but, WILL gain the critical support they need to make better decisions. The support we provide allows your team to focus on the important work of ensuring occupancy rates, delivering exceptional resident experiences, and grow their business and market shares.

Nationwide: 866-504-4050.

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