Poor or inadequate vendor management can lead to business disruptions and/or spiraling cost increases, let us help you take control of your vendor community
Most organizations fail to see the importance of managing their vendor community until there is a problem. Development of a strategic process for sourcing and managing vendor relationships will position your organization to maximize the value of its partnerships while mitigating and minimizing any potential risk to the business. This process involves the classification of your vendor community, but in proper alignment with the organization’s business drivers and objectives. The right vendor management program helps an organization determine the level of focus in such areas as Risk Management, Performance Management, Contract Management and Relationship Management. A few key areas of focus when evaluating and classifying your vendor community:
- Importance of the role of the vendor to the organization’s operation
- Are long-term contracts required
- Ease of transition to another vendor
- Requires frequent interaction and collaboration for disputes or involves complex problem-resolution mechanisms
An effective vendor management program at a minimum ensures that a governance model is establish and service, quality, performance, cost and business goals are clear and concise. HGT and its partners can help develop a vendor management program that properly classifies the vendors in your community and positions your company to effectively manage vendors.