Next Gen Vendor Management
Building a sustainable & scalable next gen vendor risk and relationship management program
What is Vendor Management?
Vendor risk and relationship management is the discipline of governing, managing and monitoring global third- and fourth-party risk behavior to drive continuous development of vendor product and services to optimize business outcomes and manage costs. The VMO team will be the driving force behind standards, promoting best practices and establishing templates for contracts, negotiations, communications and defining vendor performance metrics.
Challenges in Vendor Management
Organizations are challenged in managing their third and fourth parties due to continuing globalization of markets with increasing compliance requirements, expanding outsourcing of business processes and use of hyper-connected cloud environments that possess great risk to the enterprise.
- Rationalize and prioritize vendor landscape to optimize value from vendor partnerships
- Create Procedures to guide global vendor relationship
- Launch global programs to reduce managed spend
- Establish a set of rules that allow you to identify, rate, and mitigate the risks third- and fourth-party business partners pose to yourself and your customers
- Formulate processes to continuously assess and vet vendors and build thresholds for vendor risk tolerance
- Build a scalable customized vendor repository and procure-to-pay process to facilitate the vendor on/off boarding
- Provide vendor analytics and trending by merging internal and external data