Vendor Management is not just about sourcing suppliers with cheapest price for products or services, it's about more than that, it is about streamlining processes for heightened efficiencies, initiating and developing relationships with providers of goods and services to ensure that the agreements made are mutually beneficial for both parties.
Below are the top 4 functions of a Vendor Manager and why you should trust them:
- Reduce Costs
The word “Savings”, when embarking on this journey with the client, is of highest priority. Majority of clients will now have increased visibility of their vendors costing through the vendor management process. In addition, through the vendor management process, the client will reap the benefits of negotiating better rates, thus increasing profit margin.
- Mitigate Risks
Similarly, to a “Big Brother” approach, vendor management can track your suppliers and provide the data you need to identify supplier risks, so you can take the necessary steps to mitigate them, or choose an alternative vendor. Verification of supplier and vendor information will also reduce risks.
- Increase Administrative Efficiencies
One central point for contracts, reporting and data. Vendor management can significantly drive administrative efficiencies. As a central hub for vendor master data and record keeping, this program can cut down on duplication of data, loss of contracts, confidential information, administrative labour costs and errors. One central place for all your vendor data, can help you manage your relationships with heightened efficiency.
- Protect Your Brand
Your company’s brand holds a lot of value. You do not want to tarnish it due to the actions of an unprofessional or unethical vendor. A supplier management program can provide you with the information you need, such as a supplier’s social and environmental standards, to reduce your risk of a serious incident stemming from a vendor’s actions.
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