1. Vendor Management and Software Asset Management
Maintaining Multi-Faceted Relationships with Vendors 1

2. Vendor Management
Vendor Management: Processes that build and maintain a multi-faceted business relationship with the vendors whose software is part of the organization’s portfolio of software
Vendor Manager: Role is primary contact with the vendor
Software Asset Manager: Often has the role of Vendor Manager

3. Vendor Management Advantages to Support
Quicker resolution of support issues through the use of a single point of contact
Vendor Manager works directly with the vendors to reduce or eliminate sources of dissatisfaction, including escalation, negotiation of protection or compensation during renewal, or influences product selection away from this vendor
Vendor Manager builds trust relationship with vendor, sharing preparatory information when advantageous to the organization saving time and money 3

4. Vendor Management Advantages to Risk Management
Risk sharing is a win-win in the contract, monitored via the vendor management processes
Risk avoidance is a result of regular sharing and receiving information both directions
Compliance issues discussed before they escalate 4

5. Vendor Management Advantages to Conflict Management
Open communication reduces the risk of conflict from miscommunications saving time and money
Sets vendor policies, with scheduled reviews of performance to eliminate conflicts and surprise dissatisfaction 5

6. Vendor Management Advantages to Quality Control
Review of invoice reconciliation reports and feedback increases the accuracy of the invoice process
Delivery accuracy evaluated by the Vendor Manager
Quality control requires adherence to internal processes and the Vendor Manager both complies and assures vendor compliance to the internal process and policies 6

7. Vendor Management Advantages to Information Accuracy
Accuracy is increased by standardized vendor information
History and feedback collected by the Vendor Manager provides leverage in negotiations
Maintains information on a vendor and the products and services saving time on research 7

8. Vendor Management Advantages to Disaster Recovery Plan
Vendor Manager shares information about the distribution channel and contacts
The Vendor Manager has contracts and other critical proof of ownership documentation that is important when rebuilding after a disaster 8

9. Vendor Management Advantages to Data Security
Information is gathered from and provided to vendors in a controlled and planned manner as part of Vendor Management.
The single point of contact is a powerful addition to security
Vendor Managers ensure that non-disclosure agreements (NDAs) are in place and appropriately signed 9

10. Vendor Manager Role: Define Processes
Crisis management
Rules of engagement
Vendor consolidation
Required vendor data
Information update
Vendor Guideline maintenance
Educating vendors
Evaluation methodology including scale
Collecting feedback
Criteria for vendor ranking
Contract review and non-compliance reporting
Reporting

11. Vendor Manager Role: Manage Vendor Information
Centralize, collecting data about vendors
Registration
Questionnaire
Update process
Prioritize, based on:
Expense
Vendor classification
Strategic, organization-wide initiatives, top 5%
Preferred, value add post-sale, next 20%
Basic, normal vendor relationship, 75%

12. Vendor Manager Role: Define Vendor Policies
Vendor Communication Policy
Vendor Transition Policy
Vendor Risk Management Policy
Vendor Negotiation Policy
New Vendor Policy
Strategic Vendor Performance Policy
Vendor RFP Policy
Vendor Non-Disclosure Policy
Vendor Performance Rating Policy 12

13. Survey Internal Customers about Vendor Performance
Accuracy of invoicing
Order fulfillment timeframes
Vendor compliance process
Vendor return policy
Negotiation policy
Technical support policy
Business communication & responsiveness
Product reliability
Technical support responsiveness
Product selection availability
Negotiation flexibility
Payment terms
Sales support
Understanding of organizational structure
Product knowledge of the sales/support staff
Accuracy of order delivery
Price compared to similar products 13

14. Vendor Scorecards Objective Ratings Based on results:
Interviews
Surveys
Comparison of contract to actual
Delivered on a schedule

15. Complexity to Product/Vendor Removal
Assign a Project Manager
Form a transfer team
Develop termination strategy
Gain executive sponsor approval
Select replacement vendor
Develop transition plan
Begin assimilation of newly chosen vendor
Begin termination of current vendor
Deplete inventories
Clear invoices
Inform users of the change
Communicate with all strategic vendors
Communicate with stakeholders and business units
Terminate vendor transactions 15