What Exactly Is Vendor Management and Why Is It Crucial for Business Success?

Can I know what vendor management is?

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Vendor management involves overseeing relationships with suppliers or vendors to ensure products or services are delivered in a timely manner, meet quality standards, and are obtained at the best possible price. It includes activities such as vendor selection, contract negotiation, performance evaluation, and relationship management. Effective vendor management is crucial for businesses to maintain smooth operations and achieve their strategic goals.

Hi Mamta,

Vendor Management includes the following:

1. Selection, evaluation & re-evaluation of a supplier/vendor;
2. Identification & establishment of a purchase process;
3. Implementation of the purchase process that includes Creation, review & approval of P.O. on vendors/suppliers; and
4. Verification of the purchased product.

You can look for further details in ISO 9001:2008 standard (QMS) against clause no. 7.4. Hope the attached document serves your purpose.

For further details/clarifications, do let me know.

Regards, S. Narendra Nath Asst. Manager - QA