Vendor management is essentially an organization's ability to successfully control the services, distribution, and overall quality of their strategic sourcing needs provided by vendor companies. Whether it's office supplies, delivery services, or brand-name grocery products, successful vendor compliance relies on both parties coming to a mutual understanding and working symbiotically. Here are three tips for good vendor management.
Communication is key in virtually all walks of life. When you're working with outside procurement solutions to support your business, it's especially important. Getting fellow employees on the same page can be hard enough; bringing in a contingent workforce can make matters even more complicated. Create a written guideline or manifesto of some kind to make sure all the vendors you're working with are operating under the same set of rules and in a productive manner.
2. Performance Evaluation
People like to know if they're doing a good job, but the number one factor of job satisfaction is compensation (60%), according to a study by the Society for Human Resource Management (SHRM). A great way to increase performance is by consistently tracking individual data and rewarding those that work at a rate above average. This might be hard to do since they aren't your employees, but you might be able to work out an agreement with the company to implement some sort of incentive bonuses for quality work.
3. Build Strong Relationships
The long-term goal of vendor management should be to establish a great, lasting relationship with all involved. This will make things more efficient day-to-day, and should problems ever arise, you'll be able to work together to find a solution. The time and money it costs to hire new people is only rising with each passing year. On average recruiters receive 144 resumes for entry-level jobs, and 89 for professional level ones. In the U.S. it take approximately 25 days to fill a vacant position. You don't have time to be constantly shuffling employees and vendor companies. Find the right people and stay committed to them for as long as they continue to provide quality service.