How can you build a vendor management team that is skilled and motivated?

1 Define your vendor management objectives and strategy

Before you start building your vendor management team, you need to have a clear vision of what you want to achieve with your vendors and how you plan to do it. This means defining your vendor management objectives and strategy, which should align with your organizational goals, values, and culture. Your objectives could include improving quality, reducing costs, increasing innovation, enhancing collaboration, or mitigating risks. Your strategy could include selecting the best vendors, establishing governance and communication structures, setting expectations and standards, measuring performance and feedback, and rewarding or penalizing vendors.

2 Identify the roles and responsibilities of your vendor management team

Once you have your vendor management objectives and strategy, you need to identify the roles and responsibilities of your vendor management team. Depending on the size and complexity of your vendor portfolio, you may need different levels of vendor management, such as strategic, tactical, or operational. You also need to determine the skills and competencies required for each role, such as negotiation, project management, contract management, risk management, or relationship management. You should also define the scope and authority of each role, such as who can approve contracts, make decisions, or escalate issues.

3 Recruit and train your vendor management team members

The next step is to recruit and train your vendor management team members. You can either hire new staff, assign existing staff, or outsource some functions to external consultants or agencies. You should look for candidates who have the relevant skills and experience, as well as the right attitude and fit for your organization and culture. You should also provide them with adequate training and coaching, both on the technical aspects of vendor management and on the soft skills of communication, collaboration, and problem-solving.

4 Empower and motivate your vendor management team members

To build a vendor management team that is skilled and motivated, you need to empower and motivate your vendor management team members. This means giving them the resources, tools, and support they need to perform their tasks effectively and efficiently. You should also create a culture of trust and accountability, where team members can share ideas, feedback, and concerns without fear of retaliation or blame. You should also recognize and reward their achievements and contributions, both individually and collectively, and provide them with opportunities for growth and development.

5 Communicate and collaborate with your vendor management team members

Another key step to building a vendor management team that is skilled and motivated is to communicate and collaborate with your vendor management team members. You should establish regular and clear communication channels, such as meetings, reports, emails, or chats, to keep everyone informed and aligned on the vendor management objectives, strategy, and progress. You should also encourage and facilitate collaboration among team members, as well as with other stakeholders, such as business units, finance, legal, or IT. You should also promote a culture of learning and feedback, where team members can exchange best practices, lessons learned, and improvement suggestions.

6 Evaluate and improve your vendor management team performance

The final step to building a vendor management team that is skilled and motivated is to evaluate and improve your vendor management team performance. You should set and track key performance indicators (KPIs) and metrics, such as cost savings, quality improvement, vendor satisfaction, or risk reduction, to measure the impact and value of your vendor management activities. You should also conduct regular reviews and audits, both internally and externally, to assess the compliance and effectiveness of your vendor management processes and policies. You should also solicit and act on feedback from your team members, vendors, and other stakeholders, to identify and address any gaps or issues.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?