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 All organisations use vendors for providing at least some of their goods and services. But increasingly organisations are creating strategic alliances for the delivery of non-core services - using outsourcing solutions.
Where an outsourcing or other strategic procurement has taken place, it is not then just a case of forgetting about it and assuming it will run itself. The organisation needs to be proactive and professional in managing the relationship, contract/SLAs, commercials and day-to-day service delivery, so that the benefits of entering into such a relationship are delivered.
This process is called vendor management. Although vendor management is a vital operational activity, planning it starts pre-contract award. Indeed failure to have an effective vendor management facility in place could lead to service delivery and financial disaster. Vendor management can also be important where services are delivered to an organisation internally or from captive (divested) service providers requiring a more commercial footing.
AiM takes the role of vendor management very seriously and has specialists who will get the most out of your service providers and the relationships you have with them. We see vendor management comprising three components:
- Contract and commercial management
- Service delivery management
- Relationship management.
Contract and commercial management ensures that the legal construct is sound, fit for purpose and up to date, and the commercial aspects are acceptable to both parties. Service delivery management is about checking that services meet performance targets, assessing quality and customer satisfaction. Relationship management deals with promoting the alliance and ensuring that joint objectives are aligned. All three components have interfaces with each other.
The skill sets required by each component are different and vendor management will often require a small team of resources rather than a single individual. Particularly if the size and complexity of the organisation, contract and service portfolio are significant.
Currently at the moment for ICT only, we provide a short training course in vendor management, aligned with ICT service management. Click here for more details.
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