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Jump Start Your Vendor Management Initiative

Gain fast, measurable results within the first 100 days.

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Your Challenge

  • IT leaders are challenged in starting a centralized vendor management office or initiative by lack of funding for FTEs, failed or false starts, and the absence of proven ROI.
  • IT leaders lack the knowledge or don’t have the time available to identify short-term gains that provide the foundation for long-term strategy and sustainable success of a vendor management initiative (VMI).

Our Advice

Critical Insight

  • Obtain quick wins and visible results. Invest your vendor management efforts where they can deliver the best return; focus on the vendors most important to your business. Classify and prioritize your vendors to separate the wheat from the chaff.
  • Vendor management must be an IT strategy. Solid vendor management is an imperative – IT organizations must develop capabilities to ensure that services are delivered by vendors according to service level objectives and that risks are mitigated according to the organization's risk tolerance.
  • Visibility into your IT vendor community. Understand how much you spend with each vendor and rank their criticality and risk to focus on the vendors you should be concentrating on for innovative solutions.
  • Effectively manage cost and increase net profits. Maximize the return on investment of your vendors by tracking, capturing, and reporting value created. Capture and report business value created from your vendor management initiative by reporting improvements or savings in money, performance, time, and reducing risk.
  • Choosing the right vendors isn’t enough. Procuring valuable products and services can yield immediate visible benefits. But it’s the relationship with the vendor that ensures that benefits are sustained over the long run.

Impact and Result

  • Identify quick VMI wins with an executable “first 100 days” project plan.
  • Take a proactive approach to managing your vendors to help negotiate collaborative relationships where everyone’s best interests are accommodated.
  • Standardize your processes for transitioning in new vendors, maintaining communications, and monitoring vendor’s performance.
  • Identify your actual strategic vendors to concentrate your initial vendor management activities.
  • Clarify what is in scope and out of scope of your VMI.
  • Identify areas of improvement for assessing vendor risk.

Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should jump start a vendor management initiative, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Guided Implementations

This guided implementation is an eleven call advisory process.

Guided Implementation #1 - Define your vendor management initiative

Call #1 - Review VMI goals, mission, and charter.
Call #2 - Discuss VMI scope.
Call #3 - Review RACI chart.

Guided Implementation #2 - Evaluate your current vendor management initiatives

Call #1 - Review Info-Tech VMI Maturity Assessment Tool.
Call #2 - Review Info-Tech classification system.

Guided Implementation #3 - Create a VMI framework

Call #1 - Review quick wins and draft “first 100 days” plan
Call #2 - Discuss business review agenda and scorecards.
Call #3 - Discuss organizational structure and review vendor risk assessment.

Guided Implementation #4 - Activate your VMI to capture short-term gains

Call #1 - Review final “first 100 days” plan.
Call #2 - Discuss capturing and tracking ROI tools.
Call #3 - Review operational tools and three-year strategy plan.

Onsite Workshop

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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

The Purpose

Define your vendor management initiative.

Key Benefits Achieved

Your vendor management initiative is defined and scoped.

Activities

Outputs

1.1

Review top 10 VMI goals.

1.2

Draft VMI mission and charter.

  • VMI Mission Statement and Goals
1.3

Determine VMI scope.

  • VMI Scope
1.4

Establish a baseline headwinds and tailwinds.

  • VMI Baseline Assessment
1.5

Establish responsibilities (RACI).

  • Completed RACI Chart

Module 2: Evaluate

The Purpose

Evaluate your current vendor management initiatives.

Key Benefits Achieved

Understand the maturity level of your organization’s vendor management initiative.

Activities

Outputs

2.1

Conduct VMI maturity assessment.

  • VMI Assessment and Gap Analysis
2.2

Identify attributes of a valuable vendor.

2.3

Build vendor classification process.

  • Configured Vendor Classification Tool
2.4

Review and configure classification tool.

2.5

Review vendor preferencing model.

Module 3: Create

The Purpose

Create a foundation and framework for your vendor management initiative.

Key Benefits Achieved

Establish key tools and templates for your vendor management initiative.

Activities

Outputs

3.1

Identify VMI “quick wins.”

  • List of VMI Quick Wins
3.2

Draft “first 100 days” plan.

  • Draft First 100-Day Plan
3.3

Create business review agenda.

  • Business Review Agenda
3.4

Build vendor scorecard and feedback form.

  • Vendor Scorecard & Feedback Form
3.5

Establish organizational structure.

  • Executive Vendor Brief
3.6

Review sample job descriptions.

  • Sample Job Descriptions
3.7

Determine vendor risk.

  • Vendor Risk Assessment Tool

Module 4: Activate

The Purpose

Activate your vendor management initiative.

Key Benefits Achieved

Track and report vendor management initiatives activities as they align with short- and long-term VMI roadmap.

Activities

Outputs

4.1

Review VMI ROI calculation and reporting tools.

  • ROI Tools and Templates
4.2

Review “First 100 Days” plan and finalize.

  • Finalized “First 100 Days” Plan
4.3

Explore operational templates.

  • Potential Operational Templates
4.4

Draft high-level strategic roadmap for the VMI’s first three years.

  • High-Level Strategic Roadmap for the VMI’s First Three Years
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