Total Vendor Management
Getting What You Pay For
Benefits
- Identify which vendors to manage
- Enhance relationships with vendors
- Ensure vendor performance
- Exercise your rights
- Monitor vendor obligations
- Learn to use Key Performance Indicators (KPIs)
- Implement an effective vendor management system
Upcoming Events
Overview
Tired of worrying about your vendors’ performance? Concerned about contractual disagreements and products/services that don’t measure up to standards? This workshop will show you how to control your vendors and get what you pay for. You’ll learn techniques to establish and maintain a meaningful working relationship with your key vendors. And, you’ll discover how to create and utilize leverage that improves vendor performance.
Topics Include
- Essential Governance Structure and Tools
- Vendor Classification
- Key Performance Indicators (KPIs)
- Relationship Management Techniques
- Managed Acquisition Process
Whether you currently have or are interested in establishing a Vendor Management Office (VMO) you’ll gain valuable insights by attending this seminar.
Agenda
Online Agenda – Each day
| 11:30 – 1:00 | Session |
|---|---|
| 1:00- 1:45 | Break |
| 1:45 – 2:15 | Session |
| 2:15 – 2:30 | Break |
| 2:30 – 4:30 | Session |
Accreditation
| CTPE | ICN courses qualify for CTPE credits. The International CTPE Society Board awards up to 13 continuing education hours to attendees of this workshop toward their Certified Technology Procurement Executive certification. |
| C.L.E. | Those successfully completing this workshop can receive up to 13 C.L.E. units. |
2 Ways to Register
- Register Online Now
- Register by Phone: 407.740.0700 Monday–Friday 8:30a to 5:00p ET
Multi-registration discounts are available. Call us now to find out your level of discount!
Workshop Outline
The Problem
Customer Environment
- Less Experience
- Sense of Urgency
- Lack of Incentives
- Internal Politics
- Relationships
- Processes Not Enforced
- Lost Business Opportunities
- Bad Contracts/No Contracts
- Lack of Time and Resources
Vendor Environment
- Full Time
- Highly Trained
- Very Motivated
- Information Advantage
- Team Advantage
- Strong Relationships
- Superior Product and Service Knowledge
Relationship Dynamics
- Customer Objectives
- Vendor Objectives
The Solution
Total Vendor Management
- Governance
- Relationship Management
- Managed Acquisitions
The Benefits
- Reduce Risk
- Gain Flexibility
- Resolve Problems Early
- Save Bottom-Line Dollars
- Improve Vendor Performance
- Gain Efficiencies
- Achieve Strategic Goals
- Obtain Competitive Advantages
- Understand and Control Spending
- Get What You Pay For
Total Vendor Management
Governance
- Form Team
- Why?
- Who?
- Structure
- Responsibilities
- Conduct Evaluation
- Identify standards
- Policies—Five areas for improvement, including:
- Onsite vendors
- Ethical behavior
- Procedures—Four key topics, including:
- Change control
- Incident escalation
- Documents—Six categories of templates, including:
- Deficiency letters
- Relationship agreement
- Policies—Five areas for improvement, including:
- Conduct assessments
- Determine compliance
- Customer
- Vendor
- Identify standards
- Improve Position
- Identify best practices
- Conduct gap analysis
- Strive for best practices
- Create new standards
- Revise existing standards
- Obtain management approval
- Implement Standards
- Conduct internal training— an effective six-step process
- Notify vendors—Six key components
- Monitor Compliance
- Vendors’
- Customer’s
- Document results
- Compliance
- Noncompliance
- Enforce rights and implement remedies
Relationship Management
- Four Competencies
- Form a Team
- Executive Sponsorship
- Classification
- Measurement
- Form Team
- Why?
- Who?
- Structure
- Responsibilities
- Classify Vendors
- What?
- Determine vendors’ impact
- Why?
- Which vendors require management?
- Allocate customer resources effectively
- How?
- One-dimensional
- Two-dimensional
- Multidimensional
- What?
- Improve Relationships
- Assess current status—Five things we must do, including:
- Outline contractual commitments
- Conduct satisfaction survey
- Identify areas for improvements
- Assess current status—Five things we must do, including:
-
- Determine future needs
- This vendor
- This category of vendor
- Identify relationship desired
- Operational
- Business
- Strategic
- Evaluate leverage
- Create plan
- Implement plan
- Determine future needs
- Develop KPIs
- What are they?
- How are they used?—Six major ways, including:
- Eliminate/reduce excuses
- Grade and compare vendors
- Create KPI index model—Five short steps
- Assign VRMs
- VRM roles and responsibilities—Eight significant items, including:
- Develops relationships at highest levels
- Informs vendor of its performance
- Conducts periodic stewardship meetings
- VRM attributes—Nine critical attributes, including:
- VRM roles and responsibilities—Eight significant items, including:
- Analytical
- Diplomatic
- Familiar with vendors’ industry
- VRM key relationships
- Internal
- External
- Success criteria—Six key factors, including:
- Proven management skills
- Experience-based assignments
- Stewardship meetings—Seven components to consider, including:
- Purpose
- Frequency
- Suggested agenda
- Monitor Relationships
- Establish monitoring infrastructure
- Assign responsibilities
- KPIs
- Governance
- Reclassification
- Contract management
- Audit improvement plan results
- Ensure vendor accountability
- Relationship breakdowns—Seven important issues, including:
- Characteristics of breakdowns
- Prevention
- Resolution
Managed Acquisition Process
- Form Team
- Assemble appropriate stakeholders
- Assign roles and responsibilities
- Establish operating procedures
- Establish Decision Criteria
- Decide results or resources
- Collect objectives
- ssue request for information
- Determine Relationship Architecture
- Strategic partnership
- Tactical alliance
- Managed competition
- Gain Management Approval
- Prioritize objectives
- Rate individually
- Rank as a team
- Prepare position paper
- Prioritize objectives
- Develop Contract
- Customer’s contract
- Use to qualify vendors
- Issue Request for Proposal
- Four main sections
- Control the process
- Binding commitments
- Conduct Bidders’ Conference
- Increase leverage
- Answer questions
- Address critical issues
- Create a level playing field
- Review request for proposal
- Evaluate Potential Vendors
- Rate responses
- Qualify vendors
- Implement the ZOC
- Competitive negotiations
- Vendor evaluation continues
- Best deal on the table at all times
- Vendor selection at any time
- Manage the Contract
- What?
- Document ongoing relationship
- Monitor compliance
- Enforce rights and implement remedies
- Manage key contract components—Six elements to monitor
- Why?—Six critical reasons, including:
- Reduce risk
- Influence future decisions
- Encourage vendor accountability
- Who?
- Contract manager
- Project manager
- Others as needed
- What?
Implementation
- Sell TVM Internally
- Gain Management Approval
- Implement in Steps
- Improve Constantly
- Document and Announce Successes
Summary
Best Practices—Fourteen essential factors, including:
- Executive Sponsorship
- Cross-Functional Teams
- Organizational Alignment and Support