Vendor Management:

Negotiating with vendors and completing the Master Agreement contract.

Identifying of opportunities to cut costs and enhance vendor terms. Enhanced management information feeds the purchaser with considerable information on costs, inventory and lapses between demand and delivery.

 

Identifying vendors that are more appropriate. Sometimes there are suppliers that will provide better terms and price levels.

 

Identifying opportunities to consolidate vendors. Providing vendors with larger or more frequent orders, often results in better pricing and terms.

 

Evaluation of current vendors with respect to their performance, quality and pricing structures.

 

Evaluation of vendor catalogues in order to find products that are more appropriate.

 

Managing the transition from one vendor to another, which can often result in a break of supplies and loss of income.

 

Monitoring and evaluation of vendor activities including quality and contractual and Service Level Agreement (SLA) compliance so that the vendors comply with agreed delivery times, invoicing procedures and pricing levels.

 

Identifying and monitoring risk, which is particularly important when being supplied from third world countries. Many companies expect that Vendor Management Services will accrue the following benefits:

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•Total cost of procurement will be reduced by identifying areas to save money and fine-tuning the procurement process.

 

•Vendor performance will be enhanced by the regular reviews and improvement in processes, communications and purchaser/vendor interaction.

 

•Improved information flow between the purchaser and the vendor will increase management information to both companies. It will also allow the purchasing company to cut inventory costs by optimal purchasing.

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•Efficient purchasing will enhance profit levels and provide more fruitful customer supplies.

 

•Experienced staff are released from problem solving to concentrate on core purchasing processes.

 

•Vendor Management Services keeps the purchaser/vendor relationship balanced and both companies goals aligned.

 

• Continual review of your vendor will lessen service problems and service failures. If problems do occur, alerts as to the any penalty costs will be activated.

 

•VMS will lessen misunderstandings and miss communications.

 

•Where there are legal obligations with any purchase – such as in staffing, a VMS will ensure that these obligations are met.

Vendor Management Services are prevalent in the staffing environment, particularly when a company employs many temporary staff. Many Vendor Management Services consultancies will provide the above services using a combination of staff and computer systems.