Vendor Management: How to Work with Vendors | Summary and Q&A

TL;DR

Learn how to manage vendor relationships and achieve value through proper selection, collaboration, and communication.

Key Insights

• 🗯️ Vendor management involves selecting the right vendor based on value, not just price or presentation.
• ❓ Developing a collaborative relationship and clear communication is crucial for successful vendor management.
• 🚨 Promptly addressing and resolving issues and emergencies with vendors is necessary to maintain a smooth relationship.
• 🧚 Fair and honest assessment, timely payment, and necessary support processes are essential for fair dealing with vendors.
• 💁 Trust, transparency, and a collaborative mindset form the foundation of effective vendor management.
• 🔨 Utilizing vendor management software tools can assist in streamlining the process.
• ⌛ Properly supporting vendor management processes includes implementing time tracking, cost tracking, and review systems.

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Questions & Answers

Q: What is vendor relationship management (VRM)?

Vendor relationship management is the process of managing the relationship, controlling costs, risks, and issues, and achieving value from vendors.

Q: What are the initial steps in vendor management?

The process starts with specifying the products and services needed, running a fair competition to select a vendor based on value, and ensuring clear contract terms before committing.

Q: How can a collaborative relationship with vendors be established?

Treat vendors as partners, clearly communicate needs and expectations, involve them in administration and liaison, and establish regular meetings to build relationships and manage contracts.

Q: How should you handle issues and emergencies with vendors?

Establish emergency contacts for both parties, pay attention to holiday periods, and establish the most suitable communication tools for prompt communication during critical times.

Q: What are some important aspects of fair dealing with vendors?

Be honest and fair in assessing their work, meet financial commitments on time, and provide necessary support processes like time tracking, cost tracking, and reviewing deliverables.

Summary & Key Takeaways

• Vendor management involves working with suppliers or resellers to obtain necessary products and services at a fair price and quality.

• The vendor management process includes selection, contract management, performance monitoring, and evaluation.

• Establishing a collaborative relationship, effective communication, and using appropriate tools are crucial for successful vendor management.