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5 Tips to an Impressive & Impactful Vendor Management

5 Tips to an Impressive & Impactful Vendor Management

As your business is growing with time, it is bound to cater to more customers, hence managing a growing list of vendors. The larger your business, the larger is the network of third-party vendors. You would be needing vendor management at some point due to the supply chains becoming more complex over time. Having vendor management could leave a great impact on customer satisfaction.

TechRepublic’s last year research showed that around 47% of IT professionals work for companies with more than 10 vendor relationships. And around 57% mentioned that their tech departments spend more time on vendor management than they did in the previous two years.

As vendor management is significant for your business, here are the top 5 tips to have an Impressive & Impactful Vendor Management vendor management for growth with efficiency.

1. YOUR GOALS SHOULD BE CLEAR AND ACTIONABLE

It is important to have clear goals and milestones for smooth vendor management. This helps in understanding the requirements for your business and identifies the vendor management metrics. This is an important step as it prevents the wastage of resources and the repetition of the efforts made.

2. A TEAM FOR VENDOR MANAGEMENT SHOULD BE CREATED

A dedicated team to manage the contingent staff must be established. They will be responsible for choosing the metrics, negotiating contracts, getting in touch with reliable suppliers, evaluating the performances of the vendors, as well as tracking the transactions that take place.

3. YOU MUST HAVE A VENDOR SELECTION CRITERIA

Vendors can be segmented based on a few metrics set up by the vendor management team, such as follows:

  • Performance of the vendor
  • Total expense
  • Transaction volume
  • Quality of the product
  • Risks involved
  • Profit earned

The cost might be the most important criteria for the selection of a vendor. But, other factors, such as the flexibility at the workplace, must be looked upon while deciding the vendor that meets the requirements for a business.

4. SELECTION OF YOUR VENDOR

Post analysis of each submitted proposal of the vendor, the vendor management team will start the bidding process. The analysis is done based on the scope, the pricing structure, and if the company’s requirements can be met by the supplier. This way the buyers achieve more value in the case of collaborations.

5. CONTRACT COMPLETION AND EVALUATION

Once your vendor is selected, the SOW agreement is near completion and the vendor or vendors are ready to be brought on board. The vendor management team needs to have measured each vendor’s performance before this stage as this depends on the company’s financial and management processes. If needed, companies could talk to their suppliers for improvement or if they require a change in their needs.

Vendor management includes activities, such as negotiation of contracts and their terms, evaluation of the quality of work and performance, management of payments and refunds, resolution of disputes, dispute management, researching vendors and their capabilities, etc.

Businesses are competing with each other and to be ahead you must choose the correct workforce management system, like FlentisPRO, for your requirement. With our VMS, you unlock benefits like having better vendors, contracts, performance tracking, vendor relationships, and the value for money.

Tempting much? Why don’t you take a demo of FlentisPRO. All you have to do is, drop in a message saying, “Hi, Flentis!” at our email address info@flentis.com , and we will reach out to you.

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