An ideal Vendor Management structure should cover the whole vendor selection process, needs and requirements. Top-priority functions and clear responsibilities to the team shall be distributed along with the defined KPIs for performance management.

1. Effective
VENDOR
MANAGEMENT
- 5 Best Practices

2. Redefine Vendor Management
Structure
An ideal Vendor Management structure should cover the whole vendor
selection process, needs and requirements. Top-priority functions and clear
responsibilities to the team shall be distributed along with the defined KPIs
for performance management.

3. Align VM Framework To Business
Objectives
A vendor comes in to support your company goals and objectives but you
need to have an efficient model that supports the same. Remember, a wrong
partnership can ruin those goals. From creating an internal VM team
depending on the number of outsourced vendors to having clear insights on
every single vendor you contracted with.

4. Supplier's
Segmentation
Organized data plays the most crucial part in any business function. List all
your current vendors and classify them based on the services they provide
and their value in your organization with a clear grading system. This data will
help you invest more on the strategic vendors whose role has the highest
impact on the organization's goals and objectives, and take ample care of the
tactical vendors as well.

5. Regular Vendor Performance
Analysis
Based on the impact of a vendor on the organization's goals, their
performance has to be consistently measured. Regular Performance review
meetings would help to discuss the progress of the partnership and the
issues the team, as well as the partner, might be going through.

6. Invest In Technology For Mindful
Decision Making
Technology in 2022 has to do a lot with your business process and
operations. The more information you have about your vendors the more
strategic partnerships can be made with transparency from both ends. There
are many Vendor Management Software that can help enhance your team
efforts seamlessly with effective resource management and help with cost
containment.