The success of any organisation depends on its ability to manage its supply chain efficiently and effectively. In turn, the success of the supply chain depends on how well the company can manage its vendors.
In the entire vendor management process, there are several stages. The strategic part of vendor management depends on how the company intends to build and manage its vendor base i.e. what type of vendors they want to work with etc. The right service partners can not only ensure that jobs are completed efficiently, but also be your growth partners.
Challenges faced in the vendor management process
The day-to-day and continuous activity of vendor operations remains the most time-consuming and inefficient process for the clients.
When the organisation is able to reduce the time and effort spent on the discovery and evaluation of the vendors, without sacrificing the quality, they can truly save on resources.
Such saving directly impacts the bottom line of the organisation and makes the supply chain more efficient.
The other early challenges that need to be overcome to ensure the smooth functioning of the organisation are:
- Vendor Compliance Risk
It is necessary to set standards that will help your organisation save time and money being spent, This helps eliminate those vendors that do not comply with the company standards.
- Vendor Reputation Risk
Checking the service quality of a vendor upfront, via background checks is a must before entering into a contract with them. While some vendors can execute the task well, others can end up delivering poor performances thus jeopardising your deadlines.
- Lack of Visibility
It is crucial for organisations to have a centralised platform for managing their vendor data, which can be traced back at any point. This leads to better resource allocation and improved efficiency.
- Vendor Payment Risk
Every vendor works with different payment terms, with only some adhering to industry standards
Read how Testimonials and Case Studies help generate more business for service vendors
Aspects of the Vendor Management Process
With the proper vendor management benchmarks, for day-to-day vendor management, clients and manufacturing companies can add several benefits to their operations. Here are some of the initial and key aspects to consider for effective vendor management:
- Identification and Establishment of Business Goals
It is critical to commence by first establishing business goals that accommodate vendor involvement. This prevents efforts from being duplicated, reduces resource wastage and lastly, Vendor performance can also be assessed against these goals to measure organisational effectiveness.
- Establishment of a Vendor Management Team
The key task for this team would be to set KPIs for vendor management, select relevant vendors, negotiate the contracting process, periodically assess the performance of vendors and track all transactional activities.
There are several roles that are key to vendor management, more specifically - Vendor manager, to facilitate and maintain relationships between the organization and vendors, Procurement manager who leads the procurement team and helps identify the right vendors and Procurement specialists who spend time analysing procurement objectives and needs, researching the market etc
- Vendor Identification and selection
Information asymmetry in the market leads to sub-optimal vendor selection. The vendor management team should be able to identify the right vendors based on goals, KPIs, and other information. Venwiz as a platform solves for this by capturing relevant vendor information on their profiles.
- Vendor Assessment
Clients would need to check vendors against their capabilities, scope of work, their experience, etc.
Also Read:Vendor Digital Portfolio: A Must Have in 2021
- Efficient collaboration & digital tracking
Going beyond assessment, the vendor management team would need to evaluate vendor quality. Compare them against their counterparts, review their past experiences, look at what their previous clients have to say, etc.
How Venwiz can aid in Vendor Management
By now it is clear that effective management can have a positive impact on your business, but the question remains, how do you go about improving vendor management? The answer to this question is the core of our business at Venwiz.
Here`s how our platform t can seamlessly improve your vendor management :
- Quick vendor discovery
Digitised service procurement to improve reach to more vendors. Guaranteed vendor options with real-time, market research at stipulated turnaround time. Comprehensive vendor profiles & interaction via the platform.
- Smart vendor selection and assessment
Onboarding ready service partners ensuring minimal issues with respect to regulations, legality, quality, and technology. Vendor profiles, that are robust and detailed, ensuring all relevant data is captured for the vendor management teams to assess vendors faster and more effectively.
- Efficient collaboration & digital tracking
Our onboarding is a one-time event with regular assisted updates, payments can be tracked on the platform, with a Venwiz vendor grading to enable payment guarantees from the company. We ensure hassle-free tracking of service partners’ teams, and single-point tracking of service partners (including payments), services, authorizations, certifications, etc.
Also Read: Service Vendor Discovery in the manufacturing Industry – Simplify by making an informed choice
At Venwiz, we realize the importance & impact of a platform to search & discover the best vendors. Click here to begin your search now.