Skills Needed to Manage Vendors : Managing Vendors – Articles by Jim Everett
specific activities, appropriate to their knowledge and skill. Howe- ver, without effective Vendor Relationship Management, organisa- tions are at risk of services . Vendor management allows you to build a relationship with your suppliers and service providers that will strengthen both businesses. Vendor. Provide a process and method for assessing the skills and expertise that are priorities to develop for different roles in managing vendor relationships and.
- Vendor Management Skills Training Courses
In this post I continue to examine what it takes to be effective in managing vendors and, hopefully, find the role satisfying through being effective and influential. Hopefully this will be valuable for professionals about to be assigned to manage outsourcing, those who are already in the role and finding their way, and to more senior managers who are setting up those who will manage outsourced work.
Five Tips for Managing Vendor Relationships
Both can be large enough to have an executive in charge, with multiple Vendor Managers responsible for single programs and projects, or components. Unless I indicate otherwise, I focus on the role of a Vendor Manager who is solely responsible for the day-to-day management of a single project or program. In this post, I bring those together and look at what they have in common when it comes to skills and expertise. And for this post, I have left out the stages of establishing an outsourced initiative, defining the work, and selecting a vendor.
That is a whole extra dimension that I will talk about in other posts. People chosen for the job of vendor manager are typically those who have been working on the specialized function that is being outsourced.
6 Steps To Successful Vendor Management | Project Management Hacks
This depth of knowledge of the subject is very important. They know the underlying subject matter, and the kind of results they are looking for. They may also have management experience — of internal teams, project management, budgets, quality, conducting meetings, planning and review. All of these are helpful in the outsourced management work. But there are specific areas of expertise that come into play when outsourcing. Either they are unique to managing outsourcing, they take on much greater importance, or have to be applied differently.
The three most common type of bid documents are: RFQ Request for Quote: I have seen RFQs for carpet in office buildings.
RFI Request for Information: RFP Request for Proposal: Calibrating a RFP to the right level of detail is vitally important. If the document lacks details, you will receive proposals with unrealistic pricing. On the other hand, if the RFP is too detailed, you run the risk of narrowing the marketplace to a few or only one vendor.
Want to see what RFPs look like? At the time of this writing, there are over 21, items listed. The sheer variety of RFPs is interesting: Aircraft Wash Equipment U.
Evaluate offers and select suppliers If your bid documents are clear and present a clear business opportunity, you will have the good fortune to receive a variety of bids.
By using the selection criteria you developed earlier in the process, you are more likely to make a strategic selection that will be satisfactory for the long term.
Negotiate the contract At this stage, many companies focus their efforts on a single vendor. For high value vendor relationships, taking the time to negotiate a comprehensive contract makes sense. For context, I have seen public companies take several months to complete the negotiation process. For IT services and providers, current hot topics for contracts including managing cybersecurity risk and addressing the use of sub-contractors.
Manage the vendor relationship At last, you have a signed contract! Ready to move on? Actively managing the vendor relationship yields a number of benefits including fulfilling internal audit requirements, finding ways to reduce costs and improving quality.
Here are two practical ways to manage the vendor relationship.
6 Steps To Successful Vendor Management
Second, schedule recurring meetings to discuss issues — positive and negative — with the vendor. By developing an effective relationship model, the vendor receives the full spectrum of feedback rather than only hearing about problems. Further Resources For Vendor Management The six step process outlined in this article is a starting point to guide buyers through the vendor management process.