What is a Vendor Management Program?
A Vendor Management Program (VMP) is a structured plan designed to ensure that the performance of vendors and suppliers meets the standards set by the organization. It is an ongoing process of assessing and monitoring supplier performance and improving relationships with vendors through the use of performance metrics, contract reviews, and vendor surveys. A Vendor Management Program ensures that the organization is getting the best value from its vendors while providing them with the resources they need to succeed.
What's included in this Vendor Management Program template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Vendor Management Program template for?
The Vendor Management Program template is designed for procurement and supply chain professionals across all industries who want to manage their relationships with vendors and suppliers. This template provides a clear and structured approach to vendor management, helping organizations identify their key focus areas, set measurable goals and objectives, and track their progress. It also provides a platform for automating the process of supplier onboarding and contract management.
1. Define clear examples of your focus areas
A focus area is a particular area of the vendor management process that you are looking to improve. Examples of focus areas include vendor relationships, contract management, supplier onboarding, and supplier performance. Each focus area should have its own set of objectives and associated projects that will help you achieve your goals.
2. Think about the objectives that could fall under that focus area
Objectives are the individual goals that you are looking to achieve within each focus area. These objectives should be specific, measurable, and actionable, and they should be related to the overall goal of improving vendor performance. Examples of objectives could include improving vendor relationships, increasing compliance with contract terms, and streamlining supplier onboarding.
3. Set measurable targets (KPIs) to tackle the objective
Key Performance Indicators (KPIs) are measurable targets that you can use to track your progress towards achieving your objectives. These KPIs should be specific, measurable, and achievable, and they should be related to the objectives that you have set. Examples of KPIs include vendor engagement rate, compliance rate, average order delivery time, and supplier performance rate.
4. Implement related projects to achieve the KPIs
Projects are the individual initiatives that you need to take to achieve each objective. These projects should be specific, measurable, and actionable, and they should be related to the overall goal of improving vendor performance. Examples of projects could include centralizing vendor management, establishing performance metrics, automating contract management, and monitoring supplier performance.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade Strategy Execution Platform is designed to help organizations implement their strategy faster and more effectively. It provides an easy-to-use dashboard that allows you to quickly track progress towards achieving your goals and objectives.