Vendor Management In Procurement Definition

In procurement, vendor management is the process of selecting, onboarding, and maintaining relationships with vendors. The goal of vendor management is to get the best value for the company while minimizing risk.

The first step in vendor management is selection. Procurement managers need to identify the criteria that are important to their company and use those criteria to select vendors. Once a vendor has been selected, they need to be onboarded. This process includes creating contracts, setting up payment terms, and establishing communication channels.

After a vendor has been selected and onboarded, it is important to maintain a good relationship with them. This includes regularly communicating, resolving issues quickly, and paying invoices on time.