Comments on: Definition of Vendor Management

By: Gopal Purdhani

Gopal Purdhani — Sun, 23 Jan 2011 04:27:19 +0000

Tony is right when limiting the thought process to free marketing.
In global context where most countries are under-developed and developing, we must consider business being carried out in those and with those countries that is actually three fourth of total commercial transactions. In fact the management refers to the managing of the transactions in totality.
Out sourcing is done with the main purpose of concentrating on the real and main objective. We must resort to out sourcing all supporting activities.
Main objectives are to be accorded main efforts and involve top management.

Gopal Purdhani

By: tony

tony — Wed, 26 Aug 2009 02:36:12 +0000

I wish I could agree with Gopal, but I don’t. In free markets, demand shapes the market. While there is little doubt that suppliers’ provide the services, they wouldn’t be in business if they didn’t meet the needs of the customer.

In the outsourcing space, as in all spaces, expecting ethics from sales people is hard to believe. Vendors provide predefined SOWs, contracts, and business models to clients that are, by design, not favorable to clients.

I earnestly believe that vendors operationally want to be successful, but without being managed, they don’t succeed and will frequently fail – just like any undermanaged person, department, or organization. That’s not to say vendors provide subpar services – its that the vendors cannot understand their clients’ business, including changes, sufficiently to provide services self-sufficiently. Clients must manage vendors to be successful.

By: Gopal Purdhani

Gopal Purdhani — Wed, 26 Aug 2009 02:23:19 +0000

Vendor’s management relates to the relationship between the seller and his clients for the promotion of sustained business process. There can not be a buyer if there is no seller. The seller comes first because he identifies the need of the buyer..
At presnt the 80 % of the sale business is carried out in the unorganized sector. If this huge force is brought under proper management ethics then the techniques of business manageemnt practices would be more result oriented and meaningful.
Lat us build a society that talks of vendors management.

Gopal Purdhani

By: Gopal Purdhani

Gopal Purdhani — Fri, 31 Jul 2009 02:53:20 +0000

Vendor management is a subject that has not been talked about much, atleast in INdia. It is very strange that this highly signicant and major part of subject, business mangemnet had nat been accorded due attention; particularly with view of being an effective partener incost-effectiveness. I, therefore feel that establshing a VMO in any business enterprize is necessary to cooerdinate the in-puts from departments like materials , Legal and marketing could be integrated and function under V. P. (Marketing)

By: tony

tony — Thu, 17 Jan 2008 06:48:06 +0000

I think Stephen definitely hits on a key area of competency within a vendor management team. However, I’d avoid narrowing-down a VMO to a strategic sourcing organization. The ins and outs of managing the operations of a call center, back office, and transaction management team typically go beyond the skills and experience of a strategic sourcing professional. With that said, there is no doubt that a highly experienced strategic sourcing team and strong negotiators can add significant value to a VMO, but they may be best left within their respective IT procurement or enterprise strategic sourcing teams where their talents can be assets to the entire company – including vendor managers.

By: Stephen Guth

Stephen Guth — Tue, 15 Jan 2008 11:12:32 +0000

The definition of “vendor management” can be taken a step further with the following description of the organizational structure, the “Vendor Management Office,” that is responsible for the vendor management function:

A Vendor Management Office is a strategically-focused purchasing organization comprised of highly-skilled business advisors who are entrusted with strategic sourcing and management of vendor relationships such that investments in key commodities are maximized to the fullest extent and risk to the business minimized.

Stephen R. Guth, Esq.
http://www.vendormanagementoffice.com