Yet contracting is an inconsistent process in many organizations, resulting in unclear expectations and unnecessary risk. Your vendor management program should provide for a standard, consistent contracting process that ensures all of the necessary, risk mitigating contractual clauses are incorporated into the final agreement.
Your vendor management program must address what happens post-contract and who will be responsible. Developing a strong, mutually beneficial relationship with your vendor requires an investment from both of you. It also requires following a consistent process for continually evaluating performance, costs, risks and compliance. This is where the relationship can blossom and provide tremendous value, or fall flat and lead to big problems.
Nurture your vendor relationships to get the most value from them. Have a formal process for off-boarding your vendors, especially as it pertains to key contractual requirements such as transfer of assets, data, or destruction of confidential information.
If you need help creating a new program, or taking your existing one to the next level , give us a call. This post was originally published on April 19, and is one of our most popular.
Subscribe to receive information and updates about relevant Vendor Management topics and trends. Search for:. Software Cloud-based solution for handling your core vendor and contract management activities.
Learn More. Managed Solutions. Contact us. Right-size your vendor management program for you. Set the right tone at the top. Establish governance and engage your stakeholders. Get visibility into your vendors and contracts. Performing or managing vendor reviews related to risk, compliance and performance Terminating vendors Maintaining vendor documents Managing vendor profiles Tracking and resolving vendor incidents and problems Performing vendor contract audits Maintaining vendor management systems Maintaining vendor management policy and procedure documentation Providing vendor management training.
Keep in mind the functions you commit to may require additional staff depending on the goals of your vendor management program, and the activities you want your VMO to undertake. Among the roles you may consider are a contract administrator, a vendor analyst and a vendor auditor. Being clear on these roles and responsibilities is critical regardless of the size of your vendor management office.
Be sure to get executive buy-in on your design, and also socialize this with some of the key stakeholders you met with in step 1. In most organizations, vendor activities and documents are spread across a variety of systems, spreadsheets and email accounts.
Vendor management software helps to organize, automate and provide visibility into the process. Any organization with a formal VMO should also maintain a vendor management system.
Many vendor management systems are now cloud-based and can be purchased in modules that support one or more aspects of workflow management, document storage and oversight.
Before you go out to the masses, make sure you first have your VMO house in order. This includes:. Depending on your company culture, you may wish to do a roadshow with your business units or even hold a VMO open house. This allows you to set the stage and start engaging with your stakeholders early in the process. Subscribe to receive information and updates about relevant Vendor Management topics and trends.
Search for:. Software Cloud-based solution for handling your core vendor and contract management activities. When you consider the number of risks to identify, assess and manage throughout the third-party Schedule a personalized solution demonstration to see if Venminder is a fit for you.
Request a Demo. Best Practices. With a well-designed program, your senior management and the lines of business will be better informed to do the following: Control costs Drive service excellence Mitigate risks throughout the vendor lifecycle Keep these three goals top of mind as you carry out your vendor management practices. Related Posts. Subscribe to Venminder Get expert insights straight to your inbox.
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