Vendor Management

Proper Vendor Management is crucial to optimizing your businesses success. There is too much focus on the selection process and building the contract but little about how to manage the relationship that follows, from re-evaluating the selection process to figuring out the value that the vendors themselves bring. We reward the “signing” of a contract, but fail to invest in managing, tracking, and getting the most out of the agreements we have.

There are four key areas that need to be addressed in a comprehensive vendor management program:

Planning – Establish internal and external policies, standards, processes and templates for working with vendors.

Due Diligence – understand the vendor’s business model and financial condition. During the sales process it is easier to obtain sensitive information from a vendor than after the relationship is contracted. Include a clause in your agreement which compels a vendor to provide regular due diligence information at least annually. Is this information readily accessible? Do you have a repository and reporting system to manage due diligence?

Execute and Monitor – Managing milestones, contract expirations and notification time-lines is a must for the Plan and will have a significant impact on the performance of the vendor. Do you require updated certificates of insurance? How do you track and access them?

Measure and Improve – Mitigate, monitor and manage vendor risks as an ongoing discipline. Responsibilities include managing and improving vendor performance, and monitoring and mitigating vendor risks. Are you able to run analytics across all of your vendor programs, comparing terms, costs, and KPI’s?

Having a system to properly manage your vendor relationships is crucial. Look for a system that:

  • Centralizes ALL of your key documents in an electronic repository
  • Allows 24/7 access from anywhere
  • Has strong Security and Permissions so you control who can access specific documents
  • Digitizes key Terms and Deal Points and sends you Automated Alerts
  • Provides analytics to compare contracts, terms, and vendors so decision makers can quickly digest, assess, and act
  • Makes it easy on your employees

If you’re found yourself agreeing to these points, it’s time for you to get DealSafe. Get started here!

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