The document discusses the need for a centralized Vendor Management (VM) function at NJM to better manage its large number of vendors and contracts. It proposes creating a Vendor Management Office (VMO) to develop standardized processes and templates for vendor selection, contract management, performance monitoring, and relationship management. The VMO would establish a master vendor list, classify vendors, and help integrate VM processes into existing work models.

1. Overview & Structure Vendor Management Function July 2009

3. Vendor Management Process – Touch Points

5. Vendor Management Office (VMO)

6. Vendor Management Function/Office Vendor Management Office Select Function Owner Name function owner to organization Leadership / Function owner define agree on function mission , goals and objectives Vendor Management Function Build Out Vendor Management Overview & Structure Define Components Build out component processes and supporting templates where needed Integrate into existing work models as needed ( e . g . , PMLC / SDLC / Contract Mgmt ) Define structure for housing and using VM Materials Define Roll - Out Program

9. Master List of Vendors - Proposed

11. VMO and Key Functions - Proposed

12. Vendor Management Life Cycle

13. Vendor Management Life Cycle

14. Vendor Management Policy Key Components Vendor Selection Process Contract Management Vendor Management Policy Service Level Management Relationship Management This presentation and attached Visio files – provide a high level framework for drafting a detailed Vendor management policy.

15. Vendor Selection Process

16. Vendor Selection Process

18. Contract Management

19. Contract Management Touch Points

20. Contract Management NJM Artifacts Artifact Current State Desired State NJM Contract Policy Available May 2009 – Rolled Out TBD Referral to Contract Management Available TBD Contract review guidance Law & Regulation Vendors often provide contracts favorable to them. Hence it is important to have a check list of items – which should be part of NJM contracts. NJM Contract Management function could build awareness with NJM Officers and Manager regarding – “What to look for when reviewing a contract?”

22. Vendor Service Level Management Performance Metrics

23. Service Level Management

24. Service Level Management

25. Vendor Relationship Management

27. Change Management @NJM How to implement the VMO framework with minimum impact to NJM operations?