Vendor Management

Vendor management is rapidly becoming a key focus area in today’s complex ICT world to ensure maximum value is extracted from key supplier relationships without causing harm, or introducing unnecessary risk.

VENDOR MANAGEMENT

Vendor management has been afforded a critical priority by most consulting and advisory firms as an essential element of an ICT organisation. It allows and encourages an enterprise to build a professional and ethical relationship with strategic suppliers and service providers that will strengthen both businesses. Vendor management is not about negotiating the lowest price possible. Vendor management is about constantly working together with vendors and suppliers to come to binding and clearly defined agreements that will mutually benefit both organisations.

Some key focus areas for a successful Vendor Management approach are –

Contract and performance management
The establishment and monitoring of Service Level Agreements (SLA’s)
Creating and running an essential part of today’s governance in ICT – a Vendor Management Office (VMO). This is an essential structural component to ensure maximum efficiency is obtained from one’s vendor contracts and relationships.
Negotiations and principles of doing business are conducted in an ethical and sustainable manner
Achieving win/win outcomes, which are often quoted but seldom achieved

Enterprises should not be afraid to share business and ICT priorities with a vendor or supplier. If the vendor can help, they should find a way to provide the best solution. If they can’t help, they are expected to be honest on their capabilities and know they are not part of the customer’s or prospects’ priorities at that point in time. One should let them know you will continue to share with them what you need and how they may play a role in your business future down the road. Involvement and understanding priorities and respective strengths are key focus areas in this regard.

“There is a real need to drive contract terms and legal conditions, but in the end, no contract in the world will adequately cover your long-term goals and expectations. Build a solid, true collaborative partnership with your vendors. It will pay off in the long run. When things go bad, and they most certainly will, who would you rather have at the table? A vendor or a partner?” – Rick Hamilton, Director, service delivery, Cisco Systems Inc.

“Finish each transaction as if you expect to do business with them tomorrow.”

August Meyer

CONTACT DETAILS

Bruce MacLaren

Mobile: 083-327-0233

Email: bruce.maclaren@greyhairconsulting.co.za