You’re managing vendors for your business. How can you keep them all in check?

Define vendor requirements by specifying needed services, quality standards, compliance criteria, scalability, technology compatibility, security measures, performance metrics, communication protocols, contractual terms, risk management strategies, cultural alignment, reporting requirements, cost structures, flexibility needs, and sustainability criteria. Clarity in these requirements establishes a solid foundation for effective vendor selection and management.

Have a very robust RFI process catering different categories. Have defined vendor qualification criteria. (Financial, cost, quality etc) Do complete due diligence. If possible, do supplier risk assessment as well. Do auditing, quality checks as well. Invest initially (before onboarding) and reap the benefits later.

The KEY is maintaining a systematic record of all vendors involves the utilization of your preferred spreadsheet. The spreadsheet should precisely picture their respective roles and how they contribute most effectively to your operations. It is imperative that the sheet comprehensively tracks their services, identifies the primary points of contact for seamless communication, outlines the range of services they offer, and provides info about the closest alternative vendors. A Systematic evaluation of vendor performance is essential. This proactive approach ensures that vendor partnerships remain aligned with organizational objectives.

As a vendor management expert, ensure effective oversight by defining requirements, evaluating and monitoring vendors, managing relationships transparently, utilizing management platforms, conducting risk assessments, visiting sites, discussing expansions, optimizing demand handling, and allocating business fairly. Integrating these practices fosters resilient partnerships, mitigates risks, and drives sustainable growth.

In any process, I believe that Quality by Design and Risk Based Quality Management (QBD and RBQM) should be incorporated. The combination of integrating this into the way that relationships and deliverables of vendors a maintained to the highest possible standard. In order to achieve this a framework of Evaluation Parameters, Risk Management, Key Performance Indicators, Quality Monitoring and Assessment and Communication Plans must be incorporated at the start.

Always define your requirements in a way to keep the competition open to multiple subjects. Key to vendor management is keeping competion running, being aware they are not the only one who can provide the service.

Systematically evaluate vendors based on predefined performance metrics, service quality, compliance, communication effectiveness, financial stability, innovation, scalability, feedback, relationship management, contractual terms, risk analysis, benchmarking, technology integration, cost efficiency, and commitment to continuous improvement. Regular assessments ensure vendors align with business goals and contribute positively to overall efficiency and success. Adjustments can be made based on performance reviews to optimize vendor relationships.

Mínimo tener la referencia de 3 proveedores con respecto del producto o servicio que la organización necesita. Yo considero, y en esto soy tajante, el líder que tenga esta responsabilidad si o si debe tener como cualidad bien desarrollada, lo que es habilidades blandas, control emocional, y facilidad de negociación o de relaciones publicas. En todo este tiempo viendo y tratando proveedores de distintos rubros. No hay mejor forma de negociación que saber los intereses de tu proveedor, de persuadir, que así no sea sus políticas, tú puedas negociar y condicionarlo a tus condiciones. Siempre buscar el Win to WIN

To evaluate vendors, define criteria like quality, delivery reliability, cost-value, customer service, and compliance. Collect performance data and stakeholder feedback. Use regular review meetings and scorecards for systematic assessment. Benchmark against industry standards and address issues with improvement plans or consider alternatives for consistent underperformers. Maintain open communication for feedback and use Vendor Management Systems (VMS) for efficiency. This ensures vendors meet business goals and fosters strong relationships.

When there are barriers to entry and have a limited suppliers/vendors pool to work with, developing potential suppliers is an important aspect. This means investing time and effort by providing suppliers/vendors with training and resources.

Monthly catch up calls on update or progress of service they are hired for. Action log to be reviewed from time to time. Issue mgmt loh for any issues encountered or queries raised by site or within the internal team regarding services. Assigning each action with correct vendor owner . Review of scope as well and document any change in scope if observed . A vendor mgmt plan also helps to keep track of services delivered within committed timeline given by the vendor.

Monitor vendors through continuous tracking of KPIs, regular reviews, performance reports, open communication channels, feedback collection, compliance checks, financial audits, surveillance tools, site visits, proactive issue resolution, performance meetings, adaptability assessment, customer satisfaction surveys, technology updates, and discussions about continuous improvement. This ongoing monitoring strategy ensures vendors consistently meet expectations, facilitates timely issue resolution, and promotes a collaborative and transparent relationship.

El seguimiento es importante, sin embargo es relativo el nivel de supervisión, si has considerado los puntos que comento lineas mas arriba, podrás llegar a obtener un excelente proveedor que no se necesite tener un riguroso supervisión, puesto que, la naturaleza es difelizar a tu proveedor y que estos acompañen buenos estándares de entrega de productos o servicios por la cual se requirió

The recommended way to monitor vendors involves setting clear performance indicators related to quality, delivery, cost, and service. Regularly review these metrics through scorecards or dashboards. Use Vendor Management Systems (VMS) for real-time tracking and efficiency. Schedule periodic review meetings for feedback and improvement discussions. Foster open communication for quick issue resolution. This approach ensures vendors align with your business standards and goals, maintaining a productive partnership.

It is also important to have continuous improvement expectations established with your supplier/vendor partners. When you have long-term contracts, I expect much more than just meeting the set KPIs from my supplier/vendor partners. Their interest and investment in enhancing the way we operate by meeting continuous improvement targets shows the strength of the partnership.

While reviewing vendors post-project is crucial, it's equally important to engage in continuous feedback throughout the contract. This iterative approach ensures issues are addressed promptly, fostering innovation and adaptation. At U-NEGO, we've found that real-time feedback enhances vendor performance and collaboration, leading to better outcomes. A partnership mindset, valuing ongoing dialogue over end-point reviews, can transform vendor relationships and elevate project success

As part of effective vendor management, it is crucial to evaluate vendor performance at the end of a project or when a contract is up for renewal. To achieve this, a simple survey will be conducted with the line of business to gather feedback that will be used during discussions with the supplier(s). This process provides an advantage, as it may lead to negotiation opportunities with the supplier based on their performance. Negotiations could include cost reductions, improved KPIs, and other favourable terms.

Exacto, como parte final, ya terminado el servicio o producto, se debe contar con un KPI de medición del desempeño de tu proveedor, y considera también, que cada cierto tiempo, se haga búsqueda de nuevos proveedores, siempre el mercado va cambiando y con ello también los precios y el tipo de proveedores.

Managing vendors is like nurturing a good friendship. It’s all about keeping the lines of communication open, setting goals together, and giving and taking feedback like pros. Pay on time, celebrate wins together, and don’t be stingy with praise. Be fair in your deals and show genuine interest in their success—it’ll come back to benefit you too. Regular catch-ups to tweak things as you go along are key. And remember, a bit of personal touch goes a long way. Treat them as partners, not just suppliers, and you’ll see a world of difference in how things run.

Es correcto, en este punto juega un rol importante la razón de premiar al proveedor, de conversar en términos mas amigables que de organización. transmitir lo que mi organización representa o la imagen que desea obtener de sus clientes, también es de incumbencia de mis proveedores ya que ellos me suministran el producto/servicio .

Absolutely agree! A vendor management platform is a game-changer, centralizing info and automating processes for efficiency. At U-NEGO, leveraging such platforms has streamlined our vendor interactions, enhancing performance tracking and compliance. Real-time communication boosts collaboration, saving time and resources while optimizing outcomes. It's an essential tool for modern business

Basic rule to management of a vendor, pay them on time and see how they deliver value consistently Most people short change vendors on payments and then blame them for poor delivery, think about it

A well-defined onboarding process for new vendors ensures that they understand your business requirements, processes, and expectations from the outset. My approach has included comprehensive onboarding sessions covering contractual obligations, communication protocols, and quality standards, leading to smoother vendor integration. Having clear procedures in place for resolving disputes or performance issues is essential for maintaining positive relationships. I've established transparent mechanisms for issue escalation and resolution, which have helped in addressing conflicts constructively and maintaining trust.

Vendor management does not stop at getting quotations/offers, comparing, releasing PO, or signing a contract. Mere doing so can invite risks to the project. As we manage customer contracts, vendor contracts also need full scale enforcement of project management principles right from the beginning, even before order placement. Involves all process of planning, execution, monitoring and control, measurements and closure of the contract. Application of cost, time, quality, risk, stakeholder, communication and other knowledge area management principles & timely payments are duly required for successful vendor management and to meet key performance indicators. Important is to see it as a business that sets aside ego & works collaboratively!

Vendor lock-in is one key component that needs to be considered. If too much of infrastructure, software, or services are allocated to a single provider, it will be more difficult to diversify. It is better to make diversification part of the vendor (or rather partner) selection process, so that the best components can be selected and integrated. However, this integration needs to occur through open interfaces and not proprietary ones. Through integration a complete actionable view of the entire ecosystem can be accomplished, thereby leveraging the partner ecosystem to provide a competitive advantage.

for general tactical vendors one should set a detailed performance review cadence with an appropriate KPI's and have a dedicated individuals monitor and report the progress. If there is a deviation have the warning system and then if it's not corrected take appropriate action ( penalties, or replacement ) For strategic partners, Its very important to build a relationship with their leadership team. there has to be skin in the game for both the parties. Make them feel that they are part of your extended team.. let them know on a regular basis your product roadmap, your initiatives and priorities which will help them to understand what you are doing and why you doing etc.. Regular governance cadence at multiple levels is a must..