Some companies believe that it is the management of vendors
in order to achieve better prices and terms. Others believe that vendor
management is building a relationship with your vendors in order to obtain
mutually beneficial interactions.
In procurement process of many large companies, the vendor
interfaces with the purchaser’s inventory accounts and delivers new products on
a just in need basis. Vendor management includes care in selecting a vendor and
then undertaking regular and frequent reviews using detailed evaluation
methods. During the vendor prequalification process, a period of vendor
analysis is undertaken to find the vendors who will provide quality products at
keen pricing and advantageous terms. Each vendor is matched to a set of vendor
selection criteria to find the most appropriate vendor for the purchasing
company. Large vendors often have vendor rating assigned to them from reputable
consultancies that greatly aid the process.
The entire purchasing process and management of several
vendors is assisted by a set of tools, technologies and services, collectively
known as Vendor Relationship Management (VRM).Vendors align themselves with
their customer’s Vendor Management System that builds an efficient and
profitable procurement relationship for both companies. Vendor Performance
Management is usually measured by service level agreements and alignment to
their contractual obligations. Some companies use a balanced score board methodology.
Measurements of the relationship, account management, quality, delivery and
costs are the most common.Those companies who hire a multiple staff, particularly
temporary staff are able to use a vendor Management System to minimize costs
and prices and maximize efficiency. A VMS is an internet-based application that
connects to multiple modules to provide the best results.
If you want to undertake your vendor management or your
vendor Supply, Tejari Products and consultancy can assist you in your performance
reviews with the help of Vendor Management and Vendor Relationship Management.