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Manage Your Vendors Before They Manage You

Maximize the value of vendor relationships.

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Contributors

  • John Alexis, Director of IT Services, GTAA
  • Deepak Bansal, Enterprise Head of IT Vendor Management, Envision Healthcare
  • Ronald Flockhart, Group Sourcing Head, FirstRand Group
  • Carla Di Castro, Senior Global Sourcing Manager, Workday
  • Gerry Holmes, Director of IT, Canadian Cancer Society (ret.)
  • Rick Johnson, IT Manager, St. Lawrence County Information Technology Department
  • Sherif Sheta, CIO Advisor, CCRM
  • Stratton Penberthy
  • Three anonymous contributors

Your Challenge

  • As IT services and products continue to become outsourced, IT is increasingly dependent on external vendors, and a transaction-based approach becomes insufficient to guarantee continued value.
  • When IT does not manage these vendors properly, performance levels can drop and fail to deliver essential services – and IT is left accountable.

Our Advice

Critical Insight

  • All vendors are not equal. Invest your vendor management efforts where they can deliver the best return; focus on the vendors that are most important to your business. Classify and prioritize your vendors to separate the wheat from the chaff.
  • Vendor management is an ongoing commitment. From contracting to renewal, a successful vendor management office (VMO) depends on your ability to create repeatable, iterative processes that can flourish over many years of diligent work.

Impact and Result

  • Prioritize and classify your vendors with quantifiable, standardized rankings.
  • Focus on your strategic vendors first, then, year over year, work through every classification of vendor.
  • Standardize your processes for transitioning in new vendors, maintaining communications, and monitoring performance.
  • Create clear escalation pathways and contingency plans for addressing vendor underperformance.
  • Codify your tailored, best-practice methodology for managing vendor relationships.

Research & Tools

Start here – read the Executive Brief

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

2. Classify vendors

Classify your vendors using Info-Tech’s best-practice C.O.S.T. quadrant.

Guided Implementations

This guided implementation is a seven call advisory process.

Guided Implementation #1 - Prioritize vendors

Call #1 - Review inventory tool.
Call #2 - Discuss what attributes make a vendor indispensable to your organization.

Guided Implementation #2 - Classify vendors

Call #1 - Review Info-Tech’s classification system.
Call #2 - Validate your vendor classifications.

Guided Implementation #3 - Document vendors

Call #1 - Review the vendor information sheets and discuss any roadblocks.
Call #2 - Review the vendor scorecards and feedback cards.
Call #3 - Review meeting agendas and engagement plans.

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Vendor Management

Get more from your vendors than just a bill.
This course makes up part of the Financial Management Certificate.

Course information:

  • Title: Vendor Management
  • Number of Course Modules: 4
  • Estimated Time to Complete: 2-3 hours
  • Featured Analysts:
  • John Pinard, Sr. Research Director, Enterprise Applications
  • James Alexander, SVP of Research and Advisory, CIO Practice
  • Now Playing: Academy: Vendor Management | Executive Brief

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: Prioritize Vendors

The Purpose

Prioritize your vendors based on their importance to the organization.

Key Benefits Achieved

Prioritized list within the Vendor Inventory and Prioritization Tool.

Activities

Outputs

1.1

Decide what attributes make a vendor indispensable to your organization.

1.2

Prioritize list of IT vendors.

  • Vendor Inventory and Prioritization Tool

Module 2: Classify Vendors

The Purpose

Classify your vendors to focus your vendor management efforts.

Key Benefits Achieved

  • Classified vendors.
  • A completed vendor inventory.

Activities

Outputs

2.1

Right-size vendor classifications for your organization.

2.2

Classify your vendors.

  • Vendor Classification Tool
2.3

Complete the remaining fields of your inventory.

  • Vendor Inventory and Prioritization Tool

Module 3: Document Vendors

The Purpose

Document key information for each vendor and make a plan to maximize the value.

Key Benefits Achieved

  • Consolidated vendor information for each of your vendors.
  • A standardized approach to vendor management, comprising customized:
    • Vendor scorecards
    • Vendor feedback cards
    • Vendor review aeeting agendas
    • Completed Vendor Management Program Plan and meeting agenda

Activities

Outputs

3.1

Create a vendor information sheet for a strategic vendor.

  • Strategic Vendor Information Sheet
3.2

Create a vendor information sheet for a tactical or operational vendor.

  • Tactical/Operational Vendor Information Sheet
3.3

Create a vendor information sheet for a commodity vendor.

  • Commodity Vendor Information Sheet
3.4

Customize vendor scorecards.

  • Vendor Scorecard
3.5

Customize vendor feedback cards.

  • Vendor Feedback Cards
3.6

Customize meeting agendas.

  • Vendor Review Meeting Agenda Template
  • Vendor Management Team Meeting Agenda Template

Member Testimonials

Unlock Sample Research

After each Info-Tech experience, we ask our members to quantify the real time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this Blueprint, and what our clients have to say.

Client

Experience

Impact

$ Saved

Days Saved

Statistics New Zealand

Guided Implementation

8/10

N/A

N/A

National Restaurant Association

Guided Implementation

10/10

N/A

5

Moog Inc

Workshop

8/10

N/A

N/A

Moog Inc

Workshop

8/10

N/A

N/A

Georgia Municipal Association

Guided Implementation

10/10

$10,000

10

Curtins

Guided Implementation

10/10

$40,695

90

Westmoreland Mining LLC

Guided Implementation

8/10

$21,178

2

City of Toronto

Guided Implementation

10/10

N/A

5

Summit Healthcare

Guided Implementation

8/10

N/A

N/A

Virginia Department of Social Services

Guided Implementation

8/10

N/A

N/A

Children's Hospitals and Clinics

Guided Implementation

10/10

$33,091

5

Sub-Zero Group, Inc.

Guided Implementation

10/10

$5,294

N/A

Toyota Canada Inc

Guided Implementation

10/10

N/A

6

City of Toronto

Guided Implementation

8/10

N/A

5

Job and Family Services

Guided Implementation

9/10

$13,236

18

MARTA

Guided Implementation

9/10

N/A

N/A

Liquor Control Board of Ontario

Guided Implementation

8/10

$25,000

10

QuikTrip

Guided Implementation

10/10

$33,091

2

QuikTrip

Guided Implementation

10/10

$33,091

10

Federal Economic Development Agency for Southern Ontario

Guided Implementation

9/10

$200K

3

QuikTrip

Guided Implementation

10/10

$66,183

20

Cayman Islands Health Services Authority

Guided Implementation

10/10

$9,767

5

Ontario Lottery And Gaming Corporation

Guided Implementation

9/10

N/A

N/A

Swagelok Company

Guided Implementation

8/10

N/A

N/A

John Wiley & Sons, Inc.

Guided Implementation

10/10

N/A

N/A

QuikTrip

Guided Implementation

10/10

$66,183

10

Duke Clinical Research Institute

Guided Implementation

10/10

N/A

N/A

QuikTrip

Guided Implementation

9/10

$13,236

5

Energy+ Inc.

Guided Implementation

9/10

$10,000

10

QuikTrip

Guided Implementation

10/10

$33,091

10