Communication and negotiation are essential skills for any vendor manager, as you have to interact with various stakeholders, both internal and external, and influence their decisions and actions. You need to be able to communicate clearly and effectively, using different modes and channels, and tailor your message to your audience. You also need to be able to negotiate contracts, terms, and conditions, as well as resolve conflicts and disputes, with your vendors. You need to balance your own interests and goals with those of your vendors, and find win-win solutions that create value for both parties.
Effective communication and negotiation are vital for vendor managers to interact with stakeholders, tailor messages, resolve conflicts, and find win-win solutions. These skills build strong relationships, create value, and drive successful vendor management.
Analytical and critical thinking are important skills for any vendor manager, as you have to evaluate and compare different vendors, monitor and measure their performance, and identify and mitigate risks and issues. You need to be able to collect, analyze, and interpret data and information, using various tools and techniques, and make informed and evidence-based decisions. You also need to be able to think critically and creatively, and challenge assumptions and biases, and propose improvements and innovations to your vendor management processes and practices.
In today's rapidly evolving business landscape, the role of a vendor manager is becoming increasingly critical. By honing their analytical and critical thinking skills, vendor managers can navigate complexities, leverage data-driven insights, and drive strategic decision-making. These skills allow them to not only optimize vendor relationships but also identify emerging opportunities, mitigate risks, and foster a culture of continuous improvement. As organizations rely more on external partners, vendor managers equipped with strong analytical and critical thinking abilities can proactively adapt to changing market dynamics, enhance operational efficiency, and ultimately contribute to the overall success of their organizations.
Relationship and stakeholder management are key skills for any vendor manager, as you have to build and maintain trust, rapport, and collaboration with your vendors, as well as with your internal customers, sponsors, and peers. You need to be able to understand and empathize with your vendors' needs, expectations, and challenges, and provide them with feedback and support. You also need to be able to manage and align the expectations and interests of your internal stakeholders, and communicate and report on your vendor management activities and outcomes.
Indeed. True partnership is a two-way and often winding road to get to win/win outcomes. I have learned keeping open dialogue vs monologue going is key.
In addition to the mentioned skills, effective relationship and stakeholder management are crucial for vendor managers. Here's a short contribution to this article: Building strong relationships and managing stakeholders are vital for successful vendor management. By fostering trust, open communication, and collaboration with vendors, you can establish partnerships that drive mutual success. Additionally, understanding the needs and challenges of your vendors allows you to provide valuable support and feedback, enhancing their performance.
Leadership and project management are valuable skills for any vendor manager, as you have to lead and coordinate your vendor management team, as well as manage multiple vendor projects and initiatives. You need to be able to set and communicate your vision and goals, and motivate and inspire your team and vendors to achieve them. You also need to be able to plan, execute, and control your vendor projects, and manage the scope, schedule, budget, quality, and risks. You need to be able to delegate, empower, and coach your team and vendors, and foster a culture of accountability and excellence.
Leadership and project management skills are essential for vendor managers to effectively coordinate teams and projects. By setting a clear vision, communicating goals, and motivating stakeholders, vendor managers can drive collaboration and inspire success. Effective project management allows for efficient planning, execution, and control of vendor projects, ensuring adherence to scope, schedule, budget, quality, and risk management. Delegating, empowering, and coaching teams and vendors fosters accountability and cultivates a culture of excellence. With strong leadership and project management skills, vendor managers can navigate complexities and deliver successful outcomes.
Business and industry acumen are essential skills for any vendor manager, as you have to understand and align your vendor management strategy and objectives with your organization's mission, vision, and values, as well as with the market trends and best practices. You need to be able to assess and anticipate the impact of your vendor management decisions and actions on your organization's performance, reputation, and sustainability. You also need to be aware of the opportunities and threats that your industry and competitors pose to your organization and vendors, and leverage your vendor network to gain competitive advantage.
Continuous learning and development are crucial skills for any vendor manager, as you have to keep up with the changing needs and demands of your organization, vendors, customers, and industry. You need to be able to identify and pursue your own learning and development needs and goals, and seek feedback and guidance from others. You also need to be able to share your knowledge and expertise with your team and vendors, and learn from their experiences and insights. You need to be open to new ideas and perspectives, and embrace change and innovation in your vendor management career.
We de-silo through ongoing learning and group learning is even better! Doing a book study with my current team around cross-functional influence and it has been a worthwhile investment in team-building as we all journey toward improved individual and team effectiveness!
Retired — CEO JT Management Consulting And Associate Professor of Project Management
The ability to walk away from a bad deal even if it means you and your team have worked hard on a deal for several months. If it's not fair and equitable - get up and walk away, just like a bad marriage. Sounds easy - no it takes courage, it takes foresight, it takes an open mind to make things right for your client (company, your internal stakeholders to name a couple). A bad deal is a bad deal do not try and justify it "we worked so hard". During Vendor/Client audits of failed negotiations, the #1 issue was a hidden agenda that was raised at the last minute by one of the participants - they knew that the other side had invested too much time and money and could not walk away.
Few critical things to remember: 1) Clarity in mapping out Stakeholder Matrix- L-1s, BRMs, & Sponsors may have different expectations from the vendor or maybe partial to some. 2) Understand the granularity of RACI matrix and keep it updated and approved for changes in Vendor Management practices- Some BUs may have changed their scope while some may be overbearing even when they play little to no role. 3) Read- Read Contracts ( understand what the contract is not saying!) read about similarly placed vendors( does risk profile of your vendor aligns with the industry?), read about technological and technical advance even if happening in other Industries ( Supply chain is deep and complex even when it looks simple for your organisation)
In any sort of vendor management or selection process, it's important to have the buy-in of your entire organization that the vendor you are working with is the right partner for your company. Anyone's negative bias towards a vendor can be extremely harmful to the relationship.