Types of Companies we work with:
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What is Vendor Management?The businesses and individuals that provide goods and services to an organization are considered its vendors. A company could work with a few, dozens, or even hundreds of different vendors, all with different contract terms, pay rates, and points of contact that must be managed through a vendor manager.
The term vendor management is used when describing the activities included in researching and sourcing vendors, obtaining quotes with pricing, capabilities, turnaround times, and quality of work, negotiating contracts, managing relationships, assigning jobs, evaluating performance, and ensuring payments are made. It requires a lot of skills, resources, and time. Though many business owners believe that vendor management is simply about finding the supplier with the cheapest price for a product or service, it’s about more than that. It’s about streamlining the process for heightened efficiencies and managing vendor relationships to ensure that the agreements made are mutually beneficial for both parties. |
The Four Parts of the Process
Vendor management is typically broken down into four steps. The first is the establishment of the business goals mentioned above. It’s much easier to select and manage vendors when you have clearly defined performance parameters to compare and contrast.
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The second part of the process is to select the best vendors that will be able to match your company’s performance characteristics. Every vendor will have its strengths and weaknesses, and choosing the right one is a very critical task to optimizing operational results.
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Third is managing your suppliers. On a daily basis, your vendor managers will need to monitor performance and output, ensure contract terms are being followed, approve or disapprove changes, provide feedback, and develop relationships through effective communication, honesty, and integrity.
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Finally, the fourth aspect of vendor management is meeting your goals on a consistent basis. This requires continuous work in influencing vendors to meet performance objectives to ensure profitability.
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Contact Us
Email us at [email protected]
Call us at 727-222-3500
Call us at 727-222-3500
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Capital Vendor Management Inc
2505 56th Street South Gulfport, FL 33707 |