Unifying Vendor Management Activities

Effective vendor management is the combination of two sets of activities that are increasingly performed by two different organizations: procurement and vendor management organizations (VMOs). Both organizations play a critical role in managing vendors and ensuring the long-term health of key supplier relationships. Yet while procurement has always been a crucial part of vendor management, its focus is fundamentally different from that of a VMO. Forrester's research indicates that as firms place increased importance on strategic vendor management activities, the tension between procurement and VMOs is increasing. Which organization should be responsible for vendor management activities within your organization? The answer is both. A clearly defined understanding of the distinct and shared responsibilities for vendor management is vital to the success of your supplier relationships. This report will tell you how to build a successful sourcing and vendor management organization through collaboration between existing organizations.