Breaking down Vendor interaction

1. VENDOR
Management
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Execution of
all NDA's
Manage
RFP's
Perform
diligence
Negotiate
costs
Create
contracts
Contract
negotiations
Contract
approval
process
Gather
business
requirements
Negotiate
contract
terms
Manage
contract
renewals
Termination
of vendors

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Maintain vendor
documents
Risk reviews Onsite reviews
Vendor performance
reviews
Vendor incident
resolution
End-of-year
processing (1099M)
Invoice audits Vendor utilization
Vendor setup in
systems
Manage vendor
scorecards
Purchasing/purchase
orders

4. 4 steps to
get started
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Implement Implement the Plan
Select Select Your VMO Database
Design &
Propose
Design & Propose the VMO's Roles & Responsibilities
Know Know the Business

5. KNOW THE BUSINESS
What are the current challenges with
vendor relationships?
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6. KNOW THE
BUSINESS
How does each line of
business (LOB) handle
vendors?
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7. Know the Business
• Who currently negotiates contracts?
• Where are the contracts, reviews, SSAE 16's and Insurance Certificates
stored?
• Who performs vendor risk and performance reviews?
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8. Know the Business
• Who reviews and submits invoices?
• Who handles vendor end-of-year tax processing (1099-M)?
• Who sets up vendors in the company's database or servicing systems?
• Who are the business owners for the vendors?
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9. Design & Propose the VMO's Roles &
Responsibilities
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Timelines for each
implementation phase
Projected staff size How you will manage
the data

10. Job
Descriptions
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contract administrator
a vendor analyst
a vendor auditor

11. CONTRACT ADMINISTRATOR
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12. Assist with the RFP processAssist
Review and negotiate contract terms and pricing
Review and
negotiate
Obtain proper approvals and signatures on all contractsObtain
Maintain and update as needed company standard blanket contractsMaintain and update
Manage select vendorsManage
Assist with administering vendor action plans as neededAssist
Conduct vendor business reviewsConduct
Perform other activities as assigned by the Vendor ManagerPerform
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13. VENDOR ANALYST
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14. Research, collection, tracking
and reporting of vendor SLA's
Maintain information in the
vendor management system
Track escalated issues and
reporting of root cause
analysis
Manage the archive and
cataloging processes for all
VMO documents
Tracking of agreement
renewal dates
Assist the team in the
collection and analysis of
vendor information as input to
the annual profit plan cycle
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15. VENDOR AUDITOR
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16. Perform
Perform daily
activities related
to managing
regulatory
compliance and
performance of
the company's
vendors
Partner
Partner with the
Compliance
Department to
review changes
in regulation that
may apply to the
company’s
vendors
Maintain
Maintain an
overall vendor
scorecard that
relates to vendor
risk and
performance as
related to the
review analysis
Conduct
Conduct vendor
performance
reviews
Conduct
Conduct
diligence
reviews during
the vendor on-
board process
Conduct
Conduct vendor
risk reviews as
directed by
company
guidelines
Perform
Perform vendor
on-site reviews
as directed by
the Vendor
Manager
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17. SELECT
YOUR VMO
DATABASE
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Document Storage
Tracking and Notifications
Quick Reference Information

18. Document Storage
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Vendor
performance
reviews
Risk reviews
Fully executed
contacts
Vendor
certifications
(SSAE 16)
Insurance
certificates
On-site reviews Vendor incidents Contract redlines NDA's
Email
communications
RFP results Notes Misc. documents

19. Tracking and
Notifications
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Contract
expirations
Vendor
performance
reviews
On-site reviews
Insurance
expirations
Risk reviews
Vendor
certifications

20. Quick Reference
Information
Vendor contact info
Contract clauses
Service level
agreements (SLA)
Cost of services
Termination dates
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21. Implement the Plan
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VMO POLICIES PROCEDURES

22. VENDOR
Company / Internal Policy Topics
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23. VENDOR ONBOARD PROCESS
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24. CONTRACT SIGNING AUTHORITY
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25. Ongoing relationship with vendors
Contract
renewals
Performance
reviews
Risk reviews
Price
changes
Change in
terms
Vendor
scorecards
Vendor
issues
Gift policy
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26. HOW AND WHEN TO TERMINATE A
VENDOR
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27. Vendor Procedure List
• Steps on implementing a new vendor
• How to create and score an RFP
• How to upload new vendors into your Customer Information System (CIS), if applicable
• Creating and managing a risk review
• Creating and managing a performance review
• Processes on managing the vendor management software or database
• How to terminate a vendor
• Contract expiration notification process
• How to manage and resolve vendor incidents
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28. VALUE ADDED
support lines of business by managing vendor relationships and processes
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29. How to write
winning
contracts
with your
vendors
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Term & Termination
Definitions
Scope of Products, Services and Support
Pricing
Ordering, Delivery, Invoicing and Payment
Account Management and Reporting
Title, Risk of Loss and Warranty
Cover Yourself (Legal)

30. Managing Your Riskiest Vendors
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Operational
Risk
Financial Risk
Regulatory
Compliance
Risk

31. Improve
Vendor
Selection
Process by
Using
Vendor
Profiles
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Use Use the Profile as Part of your Vendor
Evaluation and Scoring Process
Integrate Integrate the Profile into your Competitive
Solicitation
Vet Vet the Profile with Stakeholders
Create Create a Draft Profile of Your Ideal Vendor

32. Vendor Performance Reviews
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Monitor compliance
of contractually
agreed upon KPI's
and SLA's
01
Identify areas
where the vendor is
not performing to
expectations
02
Partner with the
vendor to resolve
low vendor
performance
03
Benchmark the
vendor's
performance
against similar
vendors
04
Assess
performance trends
and resolve prior to
impacting
productivity
05
Partner with the
business owner(s)
to ensure they are
engaged with and
utilizing the
vendor's services
06

33. Why Track
Vendor
Incidents?
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Ability to look
for trends of
the same
incidents
Holds the vendor
accountable to contract
terms
Ensures the
contract
terms cover
such
incidents — if
not, consider
adding an
amendment
or addendum
Negotiate better terms
when reviewing
incidents during contract
renewal