Vendor Management

A process to manage, control, and evaluate suppliers effectively.

Workflow Steps

Step 1 - Vendor Onboarding & Due Diligence

A new vendor is onboarded through a standardized process, including due diligence checks and collection of all necessary documentation (contracts, insurance, etc.).

Step 2 - Performance & SLA Tracking

Track vendor performance against contractual Service Level Agreements (SLAs). Any breaches are automatically flagged for review.

Step 3 - Risk Assessment & Monitoring

Conduct regular risk assessments of key vendors, monitoring their financial health and security posture.

Step 4 - Contract Renewal Management

The system provides automated alerts for upcoming contract renewals, prompting a review of the vendor's performance and the value of the relationship before a decision is made to renew.

The Purpose of Vendor Management

This workflow provides a centralized system for managing all information and activities related to a company's vendors or suppliers. It serves as a single source of truth for vendor contracts, contact information, performance reviews, and risk assessments. This helps the procurement team to manage vendor relationships more effectively, reduce supply chain risk, and ensure that the company is getting the most value from its suppliers.