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Vendor Management
CONTENT
2
Determine Company’s Requirements
Search Appropriate Vendors
Selection of Vendor Operating Model
30-60-90 Plan
Negotiation Strategic Planning
Vendors Evaluation Matrix
Selection process for Vendors
Vendors Selection Timeline
Vendor Rating Scorecard
Vendors Classification
Request for Proposals
Determine Company’s Requirements
3
With increased visibility
invisible costs also increases.
Company needs a solution that
helps in reducing costs and
increasing profit margins
Ability to easily track and
measure the performance
effectively in order to ensure
smooth flow of operations
Add your company
specific text here
Need for a program that can
provide ways to improve the
operations which can help in
protecting as well as improving
the brand name
Reduce
Costs
Optimize
Performance
Increase Administrative
Efficiencies
Brand
Protection
The slide explains the
process flow
undertaken for
service level
management; it has
various operating
under it
Platforms for searching appropriate vendors
Try Searching for
vendors on Google
Check Major B2B Marketplaces
Join Industry Groups, Forums,
and Other Professional Networks
Attend a Trade Show
Subscribe to All of Your
Industry's Trade Publications
Search Appropriate Vendors
4
Vendors Classification
› Customer- Facing Vendors or Vendors
Handling Sensitive Customer Data
› High Volume / Spend
› High Switching Costs
› Limited Alternative Vendors
› Text Here
Tier 1 Vendors
Annual
Volume
of
Spend
Strategic Importance of Service
› Commoditized Services
› Many Qualified Vendors
› Occasionally used Services
Tier 3 Vendors
› Large but Selectively used Vendors
› Transactional Vendors that Deliver
Profitability & Volume
› Switching Costs are not too High
› Text Here
Tier 2 Vendors
Less
More
Low High
5
Vendors can be classified
based on services they
offer, and the amount
company needs to spend
on them. Basis this
classification company
can decide on the type of
vendor they require
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Request for Vendor Proposal
Overview of Company
and Vendors Needed
Enter Information Here
Type(s) of
Vendors Needed
› List Vendor Types Here › Text Here
› Text Here › Text Here
› Text Here › Text Here
Requirements
Service Requirements
Include Description of Project or Problem to be Solved. Include how Expectations & Relationship will be Managed. Who will Provide X Type of Equipment,
Resources, etc.
Quality/review
Requirements
Include as much Information about Performance Expectations, etc.
Non- Disclosure Both Parties agree to Basic NDA Principles for the Duration of the RFP Process.
Special Requirements
For Government, List Governing/Accrediting Bodies (if applicable), Special Compliance Needs (for HIPA, etc.) & any other Legally Binding Entities or
Agreements Specific to this Project or Company.
Time Frame Include Kickoff Time for Project, Final Deliverable Date, & (if Needed) any Milestones in between.
Pricing/Payment Spell out how the Vendor should Present Price Proposal – by hour, by fixed price, etc. Is there a not-to-exceed Ceiling?
How to Submit Include Specific Skills & Capabilities of the Vendor Company that Relate to the Project, as well as Relevant Experience, Testimonials, etc.
6
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Selection of Vendor Operating Model
Operating Models Key Features Pros Associated Risk
Decentralized
▪ Loose confederation of vendor
management teams
▪ Add text here
▪ Provides greater flexibility for
LOBs
▪ Add text here
▪ Misaligned objectives
▪ Lost opportunities & lack of
enterprise wide adherence to best
practices
Centralized
▪ Resources consolidated in a
specific location
▪ LOBs responsible for strategy &
execution
▪ Clear decision-making authority &
responsibility
▪ Creates more predictable
outcomes
▪ Insufficient LOB-related
knowledge in centralized team
▪ Add text here
Center-Led
▪ This team develops strategy,
frameworks, policies & procedures
that are applied & customized by
LOBs
▪ Day-to-day management remains
a LOB responsibility
▪ Minimizes duplication of effort
▪ Potential for inconsistent
interpretation & application among
various LOBs
▪ Add text here
7
Basis the features,
advantages & risk
mentioned below,
select the operating
model which best
suits your firm
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Selection Process for Vendors
05
04
03
02
01
Create a team of
experts from relevant
departments
Assemble Team
Select vendors for
demos based on inputs
from the team members
Demos
Discuss & prepare
for negotiation
Award Contract
Review and evaluate
the submitted
proposals
Review Proposals
Based on the demo
and the RFP evaluation
make the final choice
Final Evaluation
8
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Vendors Selection Timeline
Vendor Initial
Preparation Evaluation
Discovery Selection
› Select committees
› Carry out Scoping
› Specify reasons
for selection
› Add text here
› Establish Process
› Draft RFP
› Define Vendors list
› Add text here
› Establish Contact
› Communicate
› Share RFP
› Add text here
› Review
› Choose final list
› Add text here
› Pricing
› Site Visits
› Add text here
2.5 weeks 3 weeks 2 weeks 4 weeks 2 weeks

9
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30-60-90 Plan
30 Days
› Carry out Scoping
› Specify reasons for selection
› Add your company specific
content here
› Add your company specific
content here
By 30 Days
60 Days
› Draft RFP
› Define Vendors list
› Add your company specific content here
› Add your company specific content here
By 60 Days
90 Days
› Choose final list
› Vendor Site Visits
› Add your company specific content here
By 90 Days
10
3
2
1
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50%
10%
20%
10%
10%
100%
Vendors Evaluation Matrix
Criteria Points Weighting Total Must Points Weighting Total Must
Understanding project goal 10 15% 1.5 1 7 15% 1.05
Price 10 20% 2 1 3 20% 0.6
Vendor 3 15% 0.45 2 3 15% 0.45
Add text here 3 5% 0.15 2 3 5% 0.15
Add text here 7 5% 0.35 1 7 5% 0.35
Add text here 7 5% 0.35 1 7 5% 0.35
Add text here 7 5% 0.35 1 7 5% 0.35
Add text here 7 5% 0.35 1 3 5% 0.15
Add text here 7 5% 0.35 1 3 5% 0.15
Add text here 10 3% 0.3 1 7 3% 0.21
Add text here 10 7% 0.7 1 7 7% 0.49
Add text here 3 5% 0.15 2 3 5% 0.15
Add text here 7 5% 0.35 1 7 5% 0.35
Total 91 100% 7.35 67 100% 4.8
Vendor A Vendor B
Legend Score:
› 10 Fully accomplished
› 7 Mostly accomplished
› 3 Partially accomplished
› 0 Not usable
Legend Criteria
1
2
3
Criteria Met
Criteria Partially Met
Criteria Not Met
1
1
2
2
1
1
1
1
1
1
1
2
1
11
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1
3
1
3
1
1
1
2
2
1
1
2
2
Vendor Rating Scorecard
12
Quality 19.0 27.0
Service 30.1 17.9
Delivery 32.5 17.5
Price 41.5 21.0
Supplier Score (200) 123.1 83.4
Supplier Name:
Internal Evaluation
Supplier Name:
Self Evaluation
Criteria
Negotiation Strategic Planning
Rank Negotiation item Objective
Strategy to obtain
objective
Outcome/ status
1 Reduce the proposed cost
Due to high volume, it will
be critical to minimize the
cost
Add text here
Vendor has agreed to
reduce the cost by 5%
2 Add text here Add text here Add text here Add text here
13
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14
Additional
Slides
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audience's attention.
About Us
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audience's attention.
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15
Comparison
16
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49%
72% 54%
90%
Male Female
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your audience's attention.
Our Team
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your audience's attention.
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17
Location
18
35 M
71 M
42 M
25 M
55 M
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Puzzle
19
04
03
05
02
01
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20
Target
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21
Lego
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audience's attention.
02 03
01
Circular
22
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audience's attention.
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audience's attention.
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audience's attention.
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audience's attention.
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audience's attention.
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audience's attention.
01
02
03
04
05
06
07
Venn
23
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needs and capture your
audience's attention.
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Text Here
01
Text Here
02
24
Idea or Bulb
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audience's attention.
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audience's attention.
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25
Magnifying
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26
Bar Graph
This graph/chart is linked to excel, and changes
automatically based on data. Just left click on it
and select “Edit Data”.
• Product 01
This graph/chart is linked to excel, and changes
automatically based on data. Just left click on it
and select “Edit Data”.
• Product 02
0 10 20 30 40 50 60 70 80 90 100
Jun
May
Apr
Mar
Feb
Jan
Financial Year 2019
Sales
in
Percentage
(%)
27
Area Graph
This graph/chart is linked to excel, and changes
automatically based on data. Just left click on it
and select “Edit Data”.
• Product 01
This graph/chart is linked to excel, and changes
automatically based on data. Just left click on it
and select “Edit Data”.
• Product 02
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun
May
Apr
Mar
Feb
Jan
Sales
in
Percentage
(%)
Financial Year 2019
Thank
You
28
Address
# street number, city, state
Contact Numbers
0123456789
Email Address
emailaddress123@gmail.com

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Vendor Management Optimization

  • 2. CONTENT 2 Determine Company’s Requirements Search Appropriate Vendors Selection of Vendor Operating Model 30-60-90 Plan Negotiation Strategic Planning Vendors Evaluation Matrix Selection process for Vendors Vendors Selection Timeline Vendor Rating Scorecard Vendors Classification Request for Proposals
  • 3. Determine Company’s Requirements 3 With increased visibility invisible costs also increases. Company needs a solution that helps in reducing costs and increasing profit margins Ability to easily track and measure the performance effectively in order to ensure smooth flow of operations Add your company specific text here Need for a program that can provide ways to improve the operations which can help in protecting as well as improving the brand name Reduce Costs Optimize Performance Increase Administrative Efficiencies Brand Protection The slide explains the process flow undertaken for service level management; it has various operating under it
  • 4. Platforms for searching appropriate vendors Try Searching for vendors on Google Check Major B2B Marketplaces Join Industry Groups, Forums, and Other Professional Networks Attend a Trade Show Subscribe to All of Your Industry's Trade Publications Search Appropriate Vendors 4
  • 5. Vendors Classification › Customer- Facing Vendors or Vendors Handling Sensitive Customer Data › High Volume / Spend › High Switching Costs › Limited Alternative Vendors › Text Here Tier 1 Vendors Annual Volume of Spend Strategic Importance of Service › Commoditized Services › Many Qualified Vendors › Occasionally used Services Tier 3 Vendors › Large but Selectively used Vendors › Transactional Vendors that Deliver Profitability & Volume › Switching Costs are not too High › Text Here Tier 2 Vendors Less More Low High 5 Vendors can be classified based on services they offer, and the amount company needs to spend on them. Basis this classification company can decide on the type of vendor they require This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 6. Request for Vendor Proposal Overview of Company and Vendors Needed Enter Information Here Type(s) of Vendors Needed › List Vendor Types Here › Text Here › Text Here › Text Here › Text Here › Text Here Requirements Service Requirements Include Description of Project or Problem to be Solved. Include how Expectations & Relationship will be Managed. Who will Provide X Type of Equipment, Resources, etc. Quality/review Requirements Include as much Information about Performance Expectations, etc. Non- Disclosure Both Parties agree to Basic NDA Principles for the Duration of the RFP Process. Special Requirements For Government, List Governing/Accrediting Bodies (if applicable), Special Compliance Needs (for HIPA, etc.) & any other Legally Binding Entities or Agreements Specific to this Project or Company. Time Frame Include Kickoff Time for Project, Final Deliverable Date, & (if Needed) any Milestones in between. Pricing/Payment Spell out how the Vendor should Present Price Proposal – by hour, by fixed price, etc. Is there a not-to-exceed Ceiling? How to Submit Include Specific Skills & Capabilities of the Vendor Company that Relate to the Project, as well as Relevant Experience, Testimonials, etc. 6 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 7. Selection of Vendor Operating Model Operating Models Key Features Pros Associated Risk Decentralized ▪ Loose confederation of vendor management teams ▪ Add text here ▪ Provides greater flexibility for LOBs ▪ Add text here ▪ Misaligned objectives ▪ Lost opportunities & lack of enterprise wide adherence to best practices Centralized ▪ Resources consolidated in a specific location ▪ LOBs responsible for strategy & execution ▪ Clear decision-making authority & responsibility ▪ Creates more predictable outcomes ▪ Insufficient LOB-related knowledge in centralized team ▪ Add text here Center-Led ▪ This team develops strategy, frameworks, policies & procedures that are applied & customized by LOBs ▪ Day-to-day management remains a LOB responsibility ▪ Minimizes duplication of effort ▪ Potential for inconsistent interpretation & application among various LOBs ▪ Add text here 7 Basis the features, advantages & risk mentioned below, select the operating model which best suits your firm This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 8. Selection Process for Vendors 05 04 03 02 01 Create a team of experts from relevant departments Assemble Team Select vendors for demos based on inputs from the team members Demos Discuss & prepare for negotiation Award Contract Review and evaluate the submitted proposals Review Proposals Based on the demo and the RFP evaluation make the final choice Final Evaluation 8 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 9. Vendors Selection Timeline Vendor Initial Preparation Evaluation Discovery Selection › Select committees › Carry out Scoping › Specify reasons for selection › Add text here › Establish Process › Draft RFP › Define Vendors list › Add text here › Establish Contact › Communicate › Share RFP › Add text here › Review › Choose final list › Add text here › Pricing › Site Visits › Add text here 2.5 weeks 3 weeks 2 weeks 4 weeks 2 weeks 9 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 10. 30-60-90 Plan 30 Days › Carry out Scoping › Specify reasons for selection › Add your company specific content here › Add your company specific content here By 30 Days 60 Days › Draft RFP › Define Vendors list › Add your company specific content here › Add your company specific content here By 60 Days 90 Days › Choose final list › Vendor Site Visits › Add your company specific content here By 90 Days 10 3 2 1 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 11. 50% 10% 20% 10% 10% 100% Vendors Evaluation Matrix Criteria Points Weighting Total Must Points Weighting Total Must Understanding project goal 10 15% 1.5 1 7 15% 1.05 Price 10 20% 2 1 3 20% 0.6 Vendor 3 15% 0.45 2 3 15% 0.45 Add text here 3 5% 0.15 2 3 5% 0.15 Add text here 7 5% 0.35 1 7 5% 0.35 Add text here 7 5% 0.35 1 7 5% 0.35 Add text here 7 5% 0.35 1 7 5% 0.35 Add text here 7 5% 0.35 1 3 5% 0.15 Add text here 7 5% 0.35 1 3 5% 0.15 Add text here 10 3% 0.3 1 7 3% 0.21 Add text here 10 7% 0.7 1 7 7% 0.49 Add text here 3 5% 0.15 2 3 5% 0.15 Add text here 7 5% 0.35 1 7 5% 0.35 Total 91 100% 7.35 67 100% 4.8 Vendor A Vendor B Legend Score: › 10 Fully accomplished › 7 Mostly accomplished › 3 Partially accomplished › 0 Not usable Legend Criteria 1 2 3 Criteria Met Criteria Partially Met Criteria Not Met 1 1 2 2 1 1 1 1 1 1 1 2 1 11 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 1 3 1 3 1 1 1 2 2 1 1 2 2
  • 12. Vendor Rating Scorecard 12 Quality 19.0 27.0 Service 30.1 17.9 Delivery 32.5 17.5 Price 41.5 21.0 Supplier Score (200) 123.1 83.4 Supplier Name: Internal Evaluation Supplier Name: Self Evaluation Criteria
  • 13. Negotiation Strategic Planning Rank Negotiation item Objective Strategy to obtain objective Outcome/ status 1 Reduce the proposed cost Due to high volume, it will be critical to minimize the cost Add text here Vendor has agreed to reduce the cost by 5% 2 Add text here Add text here Add text here Add text here 13 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 15. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. About Us This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 15
  • 16. Comparison 16 This slide s 100% editable. Adapt it to your needs and capture your audience’s attention. This slide s 100% editable. Adapt it to your needs and capture your audience’s attention. 49% 72% 54% 90% Male Female
  • 17. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Our Team This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 17
  • 18. Location 18 35 M 71 M 42 M 25 M 55 M Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 19. Puzzle 19 04 03 05 02 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 20. 20 Target This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 21. 21 Lego This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 02 03 01
  • 22. Circular 22 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01 02 03 04 05 06 07
  • 23. Venn 23 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Text Here 01 Text Here 02
  • 24. 24 Idea or Bulb This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 25. 25 Magnifying This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 26. 26 Bar Graph This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. • Product 01 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. • Product 02 0 10 20 30 40 50 60 70 80 90 100 Jun May Apr Mar Feb Jan Financial Year 2019 Sales in Percentage (%)
  • 27. 27 Area Graph This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. • Product 01 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. • Product 02 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jun May Apr Mar Feb Jan Sales in Percentage (%) Financial Year 2019
  • 28. Thank You 28 Address # street number, city, state Contact Numbers 0123456789 Email Address emailaddress123@gmail.com