Strategic Vendor Management Definition
Strategic vendor management is the proactive and systematic approach to managing an organization’s relationships with its vendors. The goal of strategic vendor management is to obtain the best value from vendors while minimizing risk.
A key component of strategic vendor management is developing and maintaining a vendor management policy. This policy should outline the expectations and requirements for working with vendors, as well as the process for selecting, onboarding, and monitoring vendors.
Another important element of strategic vendor management is establishing clear lines of communication and setting up regular meetings or check-ins with vendors. This will help ensure that both parties are aware of any changes or concerns and that expectations are being met.
Finally, it’s important to have a system in place for tracking vendor performance and managing contracts. This will help ensure that you are getting the most out of your relationships with vendors and that any problems are identified and addressed in a timely manner.
