Vendor Management is one of the key management competencies needed to successfully execute outsourcing, off-shoring, and other service sourcing strategies in an organization
Why do we purchase services ?
- To maintain business FOCUS, outsource activities that are not central or core to the mission of the organization
- To deliver EFFICIENCY, outsource activities that require skills that are not best practice in the organization
- To SPEED the introduction of change, outsource activities where the organization lacks resources, knowledge or competencies
- To conserve CAPITAL, outsource activities that require investment that will not benefit the ongoing business success factors
- The management of the relationship
- The staffing of the relationship
- The quality of the service or product
- The confidentiality and protection of businesses information, knowledge, assets, and intellectual property