While vendor management programs are growing in adoption, the term ‘vendor management’ means different things to different people. At times it can be challenging to discuss vendor management without a model that provides structure to the conversation.
This is where a vendor management program framework becomes extremely helpful. It defines the fundamental building blocks of a vendor management program, and provides a reference point to discuss vendor management in a clear, consistent and comprehensive way. It also helps to standardize the ‘language’ of vendor management, which is critical when communicating across different business units and stakeholder groups.
An ideal vendor management framework should balance concepts with practicality, and should allow for the right-sizing of activities to organizations of all sizes and industries who want to create or mature their vendor management program.
Getting this balance right was a big goal of Vendor Centric when we developed our our own vendor management program framework. Our framework is comprised of two main components:
Vendor Management Activities which consist of:
- Oversight and optimization
And Vendor Management Operations which consist of:
- Policies and Procedures
We’ve found our vendor management program framework really helps organizations think about vendor management in a holistic way, and ensure all of the key stakeholders are speaking the same language and operating from the same playbook.
Learn more about implementing a vendor management program framework by listening to our podcast titled What Exactly is a Vendor Management Framework?
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Fans of the podcast can contact firstname.lastname@example.org to provide feedback and ideas for future episodes. For more information about our vendor management software and services, contact Vendor Centric’s Director of Business Development, Paul W. Schrantz at email@example.com or visit us at vendorcentric.com.
Author: Tom Rogers
Tom is the founder and CEO of Vendor Centric, he has been a trusted advisor to nonprofit organizations for 30 years, with a focus on helping them align the right people, processes and systems to mitigate third-party risk and drive more value from third-party contracts and relationships.