Vendor management is scaling with the modern technologies and newer infrastructure. The landscape for this service is changing. It has a potential to grow with the new needs.
Rohit Agrawal believes that vendor management is key to a growing business. it helps businesses upscale their revenue stream and remove the bottlenecks. It offers better distribution and supply chain techniques for businesses.
With the right methods and policies, you can enhance the logistics, innovation and even quality of your business. you need to partner with a suitable vendor management agency for the best outcomes.
Here are some of the best practices to work with vendor management companies globally. This will help you enhance the experience and ensure smoother & streamlined processes.
1. When you think of vendor management, you should think of value over quantity and other things. There are multiple vendors that source the same thing. You will find at least one vendor selling the solution you want; however, the most important thing to consider is the value they offer. If they don’t consider providing value such as good discounts, deliveries that enrich your experiences and other custom benefits, then you might want to reconsider your decision of partnering with them
2. It is important for businesses, according to Robin Swami, to think of vendor management as your partner. They are not just providers of your goods or service needs; they offer you complete solutions. They offer more personal experiences and are involved in offering more comprehensive solutions. They also award you with the data-driven insights and help improve your processes with optimal inputs
3. There should be a dedicated vendor management team for your needs so that you can enrich your customer-vendor relationships. The personalized relationship with the vendors can help enhance your buying cycle. For instance, if you need something from the vendor, it is important to have personalized interactions with them. this will help your vendor know what you require and also help you manage the business needs better
4. Rohit Agrawal believes it is important to have a vendor agreement so that you are aware of what to expect and how to continue with this relationship. The vendor agreement should be clear about the scope of work, the expectations, payment terms, total pricing, product description and the total timeline of the work. It is important to document the entire agreement and all the details essential.
5. When you are into vendor management, you should always have a set payment cycle and terms. Timely payments to the vendors is an important part of the agreement. These payments can, according to Robin Swami, build a stronger relationship with the vendor. It will also help you manage your vendor-client relationship in difficult times. In case you want more personalized solutions, you should ensure there is trust and transparency
6. It is important to analyze the risks involved with vendor management. Check if they are financially stable or competitively priced when you are shortlisting the vendors. It is also important to check if the vendors are able to handle the resource capacity and utilities you require.