How to implement an effective supplier management process

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According to Statista, companies around the world work with an average of 130 SaaS applications each.

Relationships with IT vendors that provide these applications must be managed holistically; this ensures that better value is obtained while incurring less risk.

Let’s examine the essentials of successful IT vendor management, the steps to creating an effective process, and the common pitfalls you may face along the way.

Fundamentals of IT Vendor Management
Vendor management involves building strong relationships with external service providers to ensure they deliver quality services while minimizing risks and costs.

Definition and importance of IT vendor management
IT vendor management is a strategic process of identifying, selecting, and monitoring the third-party vendors that provide goods or services to your business. It encompasses vendor evaluation, contract negotiation, performance monitoring, and relationship management.

Let's say your vendor fails to deliver the critical software your team uses every day. This can vp purchasing officer email lists put your entire operations at risk.

Proper IT vendor management helps you avoid this. It ensures that vendors meet expectations, which means fewer surprises and smooth operations while optimizing costs.

IT Vendor Acquisition vs. IT Vendor Management
While vendor management involves managing a relationship with third parties, vendor acquisition is the first step in this relationship. This is where you assess compatibility, negotiate terms, and decide if the vendor is right for you.

Here's how IT vendor procurement and management differ.