6 Steps for Managing Vendor Relationships

24,376 views

Published on

This presentation will provide 6 steps for effectively managing vendor relationships. Although positioned for the customer, this information is vital for professional services firms as well. Listening to our clients’ pain points is the best way to add value and step away from the pack.

Whether the product is ERP, CRM, BI or even something like HR services, the needs are similar and these steps will lead to success.

This presentation will cover Vendor Selection, Negotiating, Project Management, Setting expectations and priorities, Value-added services and Performance Management.

By the end of this presentation you should gain some valuable insight on methods for evaluating and selecting a professional services vendor.

Published in: Business

6 Steps for Managing Vendor Relationships

  1. 1. Lionshare Software, Inc.<br />Managing Vendor Relationships<br />
  2. 2. Best Practices for Managing Vendor Relationships<br />Vendor Selection<br />Negotiating<br />Project Management<br />Expectations / Priorities<br />Value-added services<br />Performance Management<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  3. 3. Best Practices for Managing Vendor Relationships<br />Vendor Selection Criteria<br />Experience with similar size projects and similar size companies<br />Experience with similar business types (market, channel, technology, etc<br />Stability – Financial health and employee stability<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  4. 4. Best Practices for Managing Vendor Relationships<br />Vendor Selection Criteria<br />Cultural fit – Personalities and work-styles<br />Collaborative tools<br />Well-defined project management methodology<br />Post implementation relationship with previous customers<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  5. 5. Best Practices for Managing Vendor Relationships<br />Can You Negotiate Too Hard?<br /><ul><li>Value
  6. 6. Expenses
  7. 7. Human element</li></ul>Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  8. 8. Best Practices for Managing Vendor Relationships<br />Vendor OnBoarding<br /><ul><li>Timing Expectations
  9. 9. Vendor Orientation
  10. 10. Team Building</li></ul>Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  11. 11. Best Practices for Managing Vendor Relationships<br />Project Management<br />Matched to your organizations level of competency<br />Managed through a single point of contact<br />Visible methodology<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  12. 12. Best Practices for Managing Vendor Relationships<br />Expectations / Priorities <br />Communicate expectations from Executive Sponsor through Core Team members<br />Integrate with your culture<br />Responsibility to Executive Sponsor, Steering Committee and Core Team<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  13. 13. Best Practices for Managing Vendor Relationships<br />Vendor Audits<br />Auditing Plan<br />Auditing Process<br />Areas to be Audited<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  14. 14. Best Practices for Managing Vendor Relationships<br />Value-Added Services<br />Use vendors experience to help build business case justifications as required.<br />Leverage Best Practices learned from experience with application at other companies<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  15. 15. Best Practices for Managing Vendor Relationships<br />Vendor Performance Mgmt<br />Timely<br />Metrics defined as part of selection / negotiation phase<br />Transparency<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  16. 16. Best Practices for Managing Vendor Relationships<br />Balanced Scorecard<br />Relationship<br />Cost Management<br />Quality<br />Delivery<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  17. 17. Best Practices for Managing Vendor Relationships<br />Balanced Scorecard<br />Relationship<br /><ul><li> Commitment
  18. 18. Flexibility
  19. 19. Innovation
  20. 20. Customer Satisfaction</li></ul>Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  21. 21. Best Practices for Managing Vendor Relationships<br />Balanced Scorecard<br />Cost Management<br /><ul><li> On-budget Delivery
  22. 22. Invoice Accuracy
  23. 23. Invoice Timeliness</li></ul>Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  24. 24. Best Practices for Managing Vendor Relationships<br />Balanced Scorecard<br />Quality<br /><ul><li> Expertise of Staff
  25. 25. Staff Turnover
  26. 26. Accuracy of Test Cases
  27. 27. Number of Defects</li></ul>Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  28. 28. Best Practices for Managing Vendor Relationships<br />Balanced Scorecard<br />Delivery<br /><ul><li> On-Time Completion
  29. 29. Responsiveness
  30. 30. Completeness</li></ul>Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  31. 31. Best Practices for Managing Vendor Relationships<br />Vendor Performance Metrics<br />Establish Vendor Management Responsibility<br />Establish the Performance Review Process<br />Maintain a record of all issues and resolutions<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  32. 32. Best Practices for Managing Vendor Relationships<br />Common Vendor Metrics<br />Actual-to-Estimate Tracking <br />Issue-Resolution: <br /><ul><li>Time-to-close
  33. 33. Trending Open Issues</li></ul>Estimate-To-Completion<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />
  34. 34. Best Practices for Managing Vendor Relationships<br />More Information<br />Scott Priestley <br />Email:scott@lionsharesoftware.com<br />Web: http://www.lionsharesoftware.com<br />Twitter: LionshareERP<br />Phone: 888.741.0262<br />Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com<br />

×