Vendor Management Strategies (VMS) refer to the process of managing a company’s vendors, partners and suppliers in order to maximize cost savings and achieve optimal performance. It is a critical component of any business’s operational efficiency and can significantly reduce overall costs associated with procurement, both direct and indirect. VMS involves the negotiation of terms and conditions, communication with vendors, purchase order and contract management, invoice reconciliation, and performance monitoring. By proactively managing vendors, companies can ensure their supply chain remains agile, efficient and cost-effective.