First, what is vendor relationship management? Essentially, it is the process of deepening buyer-supplier relationships to establish a stronger foundation of trust and achieve mutually beneficial outcomes. When this process is refined and relationships enriched, it can lead to a host of key benefits including a smoother flow of data, improved operations and much more.
As all vendors and their roles differ, vendor relationships cannot all be handled the same. Therefore, a well-devised process should be developed to improve the vendor procurement and investment process at the onset. Doing so starts by taking the time to investigate potential vendors and understand how their businesses work. Not only might having these solid vendor management practices in place lead to more informed decisions, but they could improve negotiations as well. After all, when the partnership is based on forming a relationship that both parties want to last and has been negotiated in good faith, it can be more lucrative overall.
Another approach to improve vendor management is revamping the procedures in place regarding planning, onboarding and tracking performance. Often, organizations turn to Contract Lifecycle Management (CLM) software to enhance these matters. CLM software can be utilized to streamline the way vendor contracts are managed and provide constructive data on contract performance through in-depth tracking. When combined with other modern strategies, a sophisticated CLM platform can help increase procurement efficiency and reduce risk, as well as develop more cost-effective and better performing vendor contracts.
For further information on improving vendor management, please see the accompanying resource.