- Ronald Flockhart, Group Sourcing Head at FirstRand Group
- Carla Di Castro, Senior Global Sourcing Manager at Workday
- Gerry Pettit, Director IT Vendor Management at CB&I
- Evan Bortzfield, Sr. Sourcing Specialist at Riverbed Technology
- Phil Kaylor, Express Scripts
- One anonymous contributor
- A large percentage of organizations do not have a formalized vendor management process, leaving the entire organization vulnerable to poor business outcomes.
- Because it is so hard to quantify ROI for vendor management activities and resources, it often doesn’t get done effectively.
- Managing vendors is a cross-functional endeavor. Without a solid internal foundation, effective vendor management is likely to fall short of achieving value-added outcomes.
- Define what vendor management means for your organization. The definition is dependent on your organization’s size and structure.
- Vendor management does not exist in a vacuum. It is integrated and dependent on other business and IT processes, such as project management, requirements gathering, procurement, and compliance.
- The internal relationships need to be strong before your vendor relationships can be strong. Make sure your organization can present a united front.
- Understand exactly where you are consuming resources in terms of people and time invested into these solutions. This is a holistic perspective on resource allocation that will drive visibility upwards to senior management and force a ROI or cost-benefit dialogue.
Impact and Result
- Taking a proactive approach to managing your vendors will help negotiate relationships where everyone’s best interests are accommodated.
- The approach begins by laying the foundation for a thorough vendor management function within your organization.
Start here – read the Executive Brief
Read our concise Executive Brief to find out why you should carefully plan your vendor management process, review Info-Tech’s methodology, and understand the different ways we can support you in completing this project.
1. Define vendor management strategy
Define vendor management and complete a vendor management office (VMO) strategic roadmap.
2. Design vendor management office
Map your organization to an organizational structure and staffing model.
3. Develop vendor management governance
Clarify value proposition and launch internal roadshow to gain stakeholder buy-in.
This guided implementation is a seven call advisory process.
Guided Implementation #1 - Define vendor management strategy
Call #1 - Define the vendor management organization’s mission.
Call #2 - Review VMO strategic roadmap.
Guided Implementation #2 - Design vendor management office
Call #1 - Map organization structure to deployment model.
Call #2 - Review vendor management staffing model.
Guided Implementation #3 - Develop vendor management governance
Call #1 - Clarify value proposition.
Call #2 - Establish value metrics.
Call #3 - Launch internal roadshow.
Book Your Workshop
Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Define Vendor Management Strategy
- Define vendor management strategy.
Key Benefits Achieved
- Define vendor management for your organization.
- Complete a strategic roadmap to document your current state and desired future state.
Envision your ideal future state.
- VMO Strategic Roadmap
Calculate your current vendor management maturity.
Conduct a gap analysis.
Write a migration plan.
Create accountability and define clear roles.
- RASCI Chart
Module 2: Design the Vendor Management Office
- Design organization and staffing model.
Key Benefits Achieved
- Map organizational model to business needs.
- Plan staffing model.
Assess and map your organization to a deployment model.
- Vendor Management Competency Framework
Assess your staff’s core competencies.
Create vendor management job descriptions.
- Vendor Management Job Descriptions
Module 3: Develop the Vendor Management Office Governance
- Develop key governance structures.
Key Benefits Achieved
- Define value metrics and value proposition.
- Write mission and charter.
- Gain stakeholder buy-in.
Define mission and charter.
- Vendor Management Mission and Charter
Establish value metrics.
Launch internal roadshow.
- Internal Survey