Merit in the community

How to introduce vendor management into your business.

Vendor Selection:

The Vendor Management process begins by selecting the right vendor for the right reasons. The vendor selection process can be a very complicated undertaking if you don't know how to approach it from the very start. You will need to analyse your business requirements, search for prospective vendors, lead the team in selecting the winning vendor and successfully negotiate a contract while avoiding contract negotiation mistakes.

Scrutinise the Prospects:

Once you start to look at individual vendors, be careful that you don't get blinded by the "glitz and sizzle." Depending upon the size of the possible contract, they will pull out all the stops in order to get your business. This may include a barrage of overzealous salespeople and "consultants". Just because they send a lot of people in the beginning, doesn't mean they will be there after they have gained your business.

Monitor Performance

Once the relationship with the vendor has begun, don't assume that everything will go according to plan, or will be executed exactly as specified in the contract. The vendor's performance must be monitored constantly in the beginning. This should include the requirements that are most critical to your business. For example:

• Hitting of project plan milestones.
• Timely distribution of vacancies.
• CV submission targets.
• Interview targets.
• Placement targets.
• Availability of consultants.
• Leavers feedback.
• Invoice accuracy and payroll support.

Whatever your targets are, it is fundamental to the success of your project that you communicate your expectations and to build in a reporting process for your supplier.

Communicate Constantly

The bottom line in vendor management best practice is communication, communication, communication! Don't assume that the vendor intimately knows your business or can read your mind. A well established and well maintained line of communication will avoid misunderstandings and proactively address issues before they become problems.