Vendor or Supplier Management
Supplier management is the process that ensures that value is received for the money that an organisation spends with its suppliers. additionally managing supplier performance and keeping accurate supplier records and information. further it also includes setting up contracts with vendors and managing all supplier and their contracts at central place.
Objectives of Supplier Management:
- Value-for-money from supplier and contracts
- Ensure all contracts and agreements are aligned with business needs and SLA’s
- Manage good relationships with suppliers & track supplier performance
- Manage supplier contracts
It’s important to categorise each supplier according to the value it brings to the service provided, and the risk that the service in question poses to the business in case of underperformance. In order to evaluate the value and risk involved with supplier and their services its important to dedicate more time into supplier management.