How do you keep control and visibility while outsourcing vendor management?

1 Define your goals and expectations

Before you outsource vendor management, you need to have a clear vision of what you want to achieve and how you will measure it. You should set specific, measurable, achievable, relevant, and time-bound (SMART) goals for your vendor management process, such as cost savings, service levels, quality indicators, risk mitigation, and innovation. You should also communicate your expectations to your outsourcing partner and align them with their capabilities and incentives. This will help you establish a common ground and avoid misunderstandings and conflicts.

2 Choose the right outsourcing partner

Not all outsourcing partners are created equal. You need to find one that has the expertise, experience, and resources to handle your vendor management needs. You should conduct a thorough due diligence and evaluation of potential outsourcing partners, considering factors such as their reputation, track record, references, certifications, culture, and values. You should also look for a partner that shares your vision and goals, and that can adapt to your changing needs and requirements. A good outsourcing partner will act as an extension of your team and collaborate with you to achieve your objectives.

4 Use technology and tools

Technology and tools can help you enhance your control and visibility over your outsourcing partner and your vendors. You should use a vendor management system (VMS) that allows you to track and manage your vendors' contracts, invoices, payments, performance, quality, compliance, and risk. A VMS can also help you automate and streamline your vendor management tasks, such as sourcing, screening, onboarding, offboarding, and evaluation. You should also use tools such as dashboards, reports, analytics, and alerts that provide you with real-time and actionable insights into your vendor management process and performance.

5 Build trust and transparency

Trust and transparency are essential for a successful outsourcing partnership. You should build trust and transparency with your outsourcing partner by sharing information, feedback, and best practices, and by involving them in your decision-making and planning. You should also encourage your outsourcing partner to build trust and transparency with your vendors by fostering a culture of collaboration, respect, and accountability. Trust and transparency will help you create a win-win situation for all parties involved and ensure that your outsourcing partner delivers on their promises and meets your expectations.

6 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?