Quantivate: Ten tips to improve vendor management program
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The document outlines 10 ways to improve a vendor management program. It discusses evolving the role of the vendor manager to be more strategic. It recommends having a senior-level vendor manager and understanding the market position of vendors and your own institution. It also suggests changing performance metrics, connecting with vendor representatives on LinkedIn, using the right type of ROI metrics, tying vendor performance to business plans, choosing the right implementation model, and making vendor management a key strategic performance indicator.
Quantivate: Ten tips to improve vendor management program
- 1. 10 Ways to Improve Your Vendor Management Program Presented by Andy Vanderhoff Quantivate
- 2. 1. The Evolving Role of the Vendor Manager • Legal Clerk • Contract Negotiator • Paperwork Administrator • Senior Leader • Strategic Thinker • Business Development
- 3. 2. The Argument for a Senior Level Vendor Manager • Ask yourself could your institution survive without vendors? • Who controls more interactions with your members – your employees? – your vendors? • What scares you more – a disaster at one of your branches – a disaster at your outsourced (fill in the blank)?
- 4. 3. Understand Vendor’s Market Position
- 5. Gartner’s 2012 Hype Cycle
- 6. 4. Understand Your Market Position • Resource: Your strategic plan
- 7. 5. Change the Performance Scale • Keep vs. Fire • A vs. F Strategic Business Partner vs. Just Another Check Casher
- 8. 6. Connect • Connect with key sales people on LinkedIn to gain an inside scoop on the industry
- 9. 7. Use the Right ROI • Types of ROIs – Efficiency: • Savings from Reduced Hours – Cost = ROI – Growth: • Additional Revenue – Cost = ROI – Good-Will: • Additional Members or Lower Churn Rate * Average Rev Per Customer – Cost = ROI
- 10. Use the Right ROI • Types of ROIs (con’t) – Risk Mitigation/Avoidance: • Cost of Potential Event / Probability – Cost = ROI – Compliance: • (just do it)
- 11. 8. Tie Original Business Plan (ROI calculation) to the Vendor Performance Review Cycle
- 12. 9. Choose the Right Implementation Model • Distributed – Every manager performing VM on the vendors they own • Centralized – One group performing VM tasks for all vendors
- 13. 10. VM as a Strategic Key Performance Indicator (KPI) • Health of your vendor eco-system should measure: – Performance metrics – Financial
- 14. Questions
- 15. Thank you! Andy Vanderhoff, CEO andy.vanderhoff@quantivate.com Quantivate is the NAFCU Services Preferred Partner for Vendor and Contract Management. Learn more at www.nafcu.org/quantivate.