Vendor Management: Definition and Uses
Vendor Management: Definition and Uses
Vendor Management: Definition and Uses
With 65 % saying that they employ outside labor for core business operations and 91 %
anticipating that use to increase over the next three years, a VMS is more important than
ever.
Step 1
These are crucial to the success of your programme. The policy should clarify how vendor risk
will be addressed. Procedure documents should define roles and duties for top vendor
management services and your business lines.
Step 2
Check out your vendors before signing contracts with them. Questionnaires and risk assessments
are useful for comparing suppliers and assigning security ratings. They should offer proof of
certificates and penetration testing findings. When required, perform site visits.
Step 3
Establish contract criteria for review, approval, monitoring, and contract storage. Your contracts
should cover service level agreements (SLA), issue escalation, vendor termination, and security
documentation. Templates are useful, but they should be customized for each vendor
management services depending on their roles, responsibilities, and compliance needs.
Step 4
Quality governance, risk, and compliance (GRC) software may help you save money and time.
Many of the duties described here can be performed by automation, such as creating and
categorizing questionnaires, staying on top of compliance requirements, and regularly
monitoring third-party providers.
Focus Points
1. The order came from on high, and there is no getting around it: you are in charge of
your organization's vendor management process.
2. Vendor Management Services help to keep the buyer/vendor relationship balanced
and the aims of both firms aligned.
3. Vendor Risk Management technology assists companies in assessing, monitoring,
and managing their risk exposure from third-party suppliers (TPSs) who supply IT
goods and services or have access to company information.