Once a vendor has been chosen and the contracts have been negotiated and drawn up, the money-for-produce transaction will take place. 100 salmon, 100 yellowtail, and 400 oysters), and then they’ll evaluate potential seafood vendors. When undergoing their vendor management, the restaurant’s staff will first determine what they need for their fish-based dishes (i.e. “Vendor management is the multi-stage process of initiating and developing relationships with providers of goods and services that a purchasing company (“the buyer”) needs for day-to-day operations and the fulfillment of its mission.” – Sap Ariba, What is vendor management?Īs an example, let’s take the aforementioned (and hypothetical) restaurant. SAP Ariba, the procurement and supply chain specialists, define vendor management as follows: A digital marketing company, meanwhile, will have vendors such as The Rocket Science Group, who provide tools such as MailChimp. So let’s start from the very beginning.Ī vendor is a business that supplies goods to another company.įor instance, a restaurant which offers seafood on their menu will have a wholesale seafood supplier as one of their vendors. I appreciate that the topic of vendor management may appear a little bewildering.
Now, it’s time to get a solid grasp on vendor management.
Specifically, you’ll learn exactly what vendor management is, the benefits of it, and the process of managing vendors successfully. That’s why in this informative, easy-to-understand post, I’ll tell you everything you need to know about vendor management – and in layman’s terms. Learning about vendor management is no easy task.Īs soon as you search the words ‘vendor management’ in Google, you’re bombarded with details regarding vendor management systems, rather than information regarding vendor management itself.Īnd considering that 88% of companies use at least one outside vendor, and 47% more than 10 vendors, vendor management is a topic that, at some point in their careers, many employees will need to understand.
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