Vendor management is the process of assessing supplier performance, defining and setting expectations for quality and delivery, and maintaining supplier performance records. The goal of vendor management is to ensure that suppliers meet or exceed the buyer’s expectations in terms of quality, delivery, and cost.
There are several vendor management activities that buyers can perform in order to manage their suppliers effectively:
* Assessing supplier performance – This involves evaluating the supplier’s performance against agreed-upon metrics such as quality, delivery, cost, etc. Buyers should regularly review supplier performance data and identify any areas of improvement.
* Defining and setting expectations for quality and delivery – Buyers should work with suppliers to establish clear expectations for quality and delivery. These expectations should be documented in a formal agreement between the buyer and supplier.
* Maintaining supplier performance records – Buyers should maintain accurate records of each supplier’s performance. This data can be used to assess trends over time and identify potential problems early on.