Establish a Sustainable Vendor Management Office

Lay the foundation for a vendor management process that is built to last.

Unlock

This content requires an active subscription.

Access this content by logging in with your Info-Tech Research Group membership or contacting one of our representatives for assistance.

Speak With A Representative Sign In
or Call: 1-888-670-8889 (US) or 1-844-618-3192 (CAN)

Your Challenge

  • A large percentage of organizations do not have a formalized vendor management process, leaving the entire organization vulnerable to poor business outcomes.
  • Because it is so hard to quantify ROI for vendor management activities and resources, it often doesn’t get done effectively.
  • Managing vendors is a cross-functional endeavor. Without a solid internal foundation, effective vendor management is likely to fall short of achieving value-added outcomes.

Our Advice

Critical Insight

  • Define what vendor management means for your organization. The definition is dependent on your organization’s size and structure.
  • Vendor management does not exist in a vacuum. It is integrated and dependent on other business and IT processes, such as project management, requirements gathering, procurement, and compliance.
  • The internal relationships need to be strong before your vendor relationships can be strong. Make sure your organization can present a united front.
  • Understand exactly where you are consuming resources in terms of people and time invested into these solutions. This is a holistic perspective on resource allocation that will drive visibility upwards to senior management and force a ROI or cost-benefit dialogue.

Impact and Result

  • Taking a proactive approach to managing your vendors will help negotiate relationships where everyone’s best interests are accommodated.
  • The approach begins by laying the foundation for a thorough vendor management function within your organization.

Establish a Sustainable Vendor Management Office

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should carefully plan your vendor management process, review Info-Tech’s methodology, and understand the different ways we can support you in completing this project.


1

Define vendor management strategy

Define vendor management and complete a vendor management office (VMO) strategic roadmap.

3

Develop vendor management governance

Clarify value proposition and launch internal roadshow to gain stakeholder buy-in.

Onsite Workshop

Book Your Workshop

Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Define Vendor Management Strategy

The Purpose

  • Define vendor management strategy.

Key Benefits Achieved

  • Define vendor management for your organization.
  • Complete a strategic roadmap to document your current state and desired future state.

Activities:
Outputs

1.1

Envision your ideal future state.

  • VMO Strategic Roadmap

1.2

Calculate your current vendor management maturity.

1.3

Conduct a gap analysis.

1.4

Write a migration plan.

1.5

Create accountability and define clear roles.

  • RASCI Chart

Module 2: Design the Vendor Management Office

The Purpose

  • Design organization and staffing model.

Key Benefits Achieved

  • Map organizational model to business needs.
  • Plan staffing model.

Activities:
Outputs

2.1

Assess and map your organization to a deployment model.

  • Vendor Management Competency Framework

2.2

Assess your staff’s core competencies.

2.3

Create vendor management job descriptions.

  • Vendor Management Job Descriptions

Module 3: Develop the Vendor Management Office Governance

The Purpose

  • Develop key governance structures.

Key Benefits Achieved

  • Define value metrics and value proposition.
  • Write mission and charter.
  • Gain stakeholder buy-in.

Activities:
Outputs

3.1

Define mission and charter.

  • Vendor Management Mission and Charter

3.2

Establish value metrics.

3.3

Launch internal roadshow.

  • Internal Survey