Description
Learn in a classroom environment with your peers, virtually, with an instructor online.
Course Length: 2 days
Target Audience: General
More than 90 per cent of companies buy from vendors and some have a lot of vendors! Dealing with many different vendors requires a systematic way to manage them. And, how well a vendor does their job also affects the performance of your business. In order to ensure maximum value to your business it is important to understand the benefits and challenges of vendor management so that you can define an effective vendor management process. This one-day course will outline a vendor management process, including a vendor policy document, developing key performance indicators, assessing potential vendor risk, describing components of a vendor contract, and monitoring the performance and relationship of vendors using questionnaires, forms and auditing.
Learning Objectives:
- Define what a vendor is and what vendor management entails
- Discuss the benefits and challenges of vendor management
- Differentiate between different types of vendors and outline the effects on potential relationships
- Outline the types of information that needs to be in a vendor management policy
- Set SMART business goals and vendor KPIs
- Define and illustrate a vendor life cycle
- Understand the components of a risk management framework
- Explain various software options for vendor risk management assessment
- Assess and select vendors using questionnaires and checklists
- Scale vendor assessments based on the vendors’ risk level
- Utilize a significance of risk rating to determine a potential vendor
- List the components of a vendor contract
- Monitor the performance and relationship of vendors using questionnaires, forms and auditing.
Course Overview
You will spend the first part of the day getting to know participants and discussing what will take place during the workshop. Students will also have an opportunity to identify their personal learning objectives.
Vendor Management
In this session, we will first define what a vendor is and then look at the three phases of vendor interactions. After this we will look at a simple example to help us visualize what vendor management might include.
Benefits and Challenges of Vendor Management
Next, we will explore the benefits and challenges of vendor management.
Types of Vendors
Next, we will define what a critical vendor is and what risk levels these vendors bring with them. As well, we will explore what vendor management and relationship management might look like with these vendors.
Vendor Management First Steps
Next, we will determine the types of information that needs to be in a vendor management policy and then look at creating goals and KPIs.
Vendor Life Cycle Management
Next, we will examine a philosophy that underlies many vendor management processes: vendor life cycle management.
Assessment and Selection of Vendors
Next, we will define a risk management framework and explore third-party software solutions to assess vendors. After defining risk, we will then explore assessing levels of vendor risk and how to use this information in selecting vendors.
Developing Contracts and Finalizing Vendors
Next, we will look at how to negotiate and finalize a vendor contract.
Monitoring Performance and Relationship of Vendors
Next, we will look at tools that can be used to evaluate vendor performance such as questionnaires, evaluation forms and audits.
Workshop Wrap-Up
At the end of the course, students will have an opportunity to ask questions and fill out an action plan.
Supplement Material
A student manual is available for the learner to follow during the instructor’s presentation.
Benefits to the participants
Throughout the activities, the learners will gain a better understanding of the importance of vendor management.
Course Evaluation
A course evaluation will be completed by the learners once the course is finished.
Note: The course outline may be subject to change.
