Vendor management in most companies is handled by teams involved in procurement or accounts payable. If you google “vendor management software,” you’ll see the kinds of enterprise tools they use.
However, IT has its own unique interest in vendor management, notably around security risks. We can assure you that the accounts payable team isn’t tracking the cybersecurity risk profile of vendors, nor would you want them to.
So, what should vendor management look like when viewed through the IT lens?
What is vendor management?
Vendor management refers to the processes used by organizations to manage their vendors. This involves various activities like vendor selection, contract negotiation, cost management, service delivery. The whole process is aimed at creating the best vendor management practices that will benefit the organization.
With proper vendor management, organizations can bring down supplier costs, improve service delivery, mitigate potential risks and more. Most importantly, vendor management plays a critical role in meeting business objectives and preventing business disruptions arising out of delivery failures.