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You’re a risk manager. What new skills can you learn in Vendor Management to improve your work?

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As a risk manager, you are responsible for identifying, assessing, and mitigating the potential threats and uncertainties that could affect your organization's objectives and performance. One of the key sources of risk that you need to manage is your vendors, or the external parties that provide goods or services to your organization. Vendor management is the process of establishing and maintaining effective relationships with your vendors, ensuring that they deliver quality, value, and compliance, and minimizing the risks associated with their performance, security, and reputation. In this article, we will explore some of the new skills that you can learn in vendor management to improve your work as a risk manager.

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Vigna Kishore Kanumilli
Christian Bernard,DSE,CPP

Security and Risk Management Manager IQFARMA / Especialista en Ciberseguridad, Ciberdefensa y Transformación digital /…
Tom Lazenby

Founder @ Mayet Innovating clinical research with purpose built vendor management software.

1 Strategic Sourcing

Strategic sourcing is the skill of finding and selecting the best vendors for your organization's needs, based on criteria such as cost, quality, reliability, innovation, and sustainability. It involves conducting market research, analyzing your requirements and spend, evaluating and negotiating with potential vendors, and developing contracts and service level agreements. By learning strategic sourcing, you can optimize your vendor portfolio, reduce costs, improve quality, and enhance your competitive advantage.

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Vigna Kishore Kanumilli
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Contract Negotiation Vendor Due Diligence Performance Monitoring Risk Assessment Relationship Management Compliance Management Technology Utilization Conflict Resolution These skills enhance risk management by improving vendor interactions, mitigating operational and financial risks, ensuring compliance, and fostering positive relationships.

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Christian Bernard,DSE,CPP

Security and Risk Management Manager IQFARMA / Especialista en Ciberseguridad, Ciberdefensa y Transformación digital / Past president ASIS PERU
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Como gestor de riesgos, aprender habilidades de gestión de proveedores (Vendor Management) puede ser crucial para mejorar tu trabajo.

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Tom Lazenby

Founder @ Mayet Innovating clinical research with purpose built vendor management software.
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Master identifying and engaging with suppliers who align with your organisation's strategic goals. Learn to conduct market analysis and develop sourcing strategies that optimise cost while ensuring quality and reliability. This skill enhances your ability to mitigate risks by choosing the right vendors.

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S M Nazmul Islam

|| Sales, Business Development, Supply Chain, Distribution, Operation & Logistics || Internal Auditor EMS-14001,QMS-9001 & OHSMS-45001 ||
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Strategic Sourcing: This involves going beyond simply finding a vendor to strategically selecting partners that align with your business goals. Vendor Performance Management: Being able to set clear performance metrics and SLAs (Service Level Agreements) with vendors is crucial. Vendor Risk Management: This goes beyond general risk management and focuses on assessing and mitigating risks specific to vendors. Data Analysis: Vendor management generates a lot of data on performance, contracts, and risk assessments. Learning to analyze this data effectively allows you to identify trends, make better decisions, and improve your risk management strategies.

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2 Vendor Relationship Management

Vendor relationship management is the skill of building and maintaining positive and productive relationships with your vendors, based on trust, communication, collaboration, and feedback. It involves setting and monitoring expectations, resolving issues and conflicts, managing changes and risks, and evaluating and rewarding performance. By learning vendor relationship management, you can improve your vendor satisfaction, loyalty, and retention, increase your operational efficiency and effectiveness, and foster innovation and continuous improvement.

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Christian Bernard,DSE,CPP

Security and Risk Management Manager IQFARMA / Especialista en Ciberseguridad, Ciberdefensa y Transformación digital / Past president ASIS PERU
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Aprender a evaluar a los proveedores potenciales en términos de su idoneidad para cumplir con tus necesidades y estándares de riesgo.

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Tom Lazenby

Founder @ Mayet Innovating clinical research with purpose built vendor management software.
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Focus on building and maintaining partnerships with shared accountability rather than communicating 'at' or 'to' the vendor. Learn effective communication, negotiation, and conflict resolution techniques. This skill is crucial for collaboration and partnership, ensuring that vendors are committed to your success and are more responsive to your needs.

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3 Vendor Risk Management

Vendor risk management is the skill of identifying, assessing, and mitigating the risks associated with your vendors, such as operational disruptions, data breaches, regulatory violations, reputational damage, and legal liabilities. It involves conducting due diligence, performing risk assessments, implementing controls and mitigation plans, and monitoring and reporting on vendor risk. By learning vendor risk management, you can protect your organization from potential losses, incidents, and penalties, ensure your vendor compliance with laws and standards, and enhance your risk culture and governance.

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Christian Bernard,DSE,CPP

Security and Risk Management Manager IQFARMA / Especialista en Ciberseguridad, Ciberdefensa y Transformación digital / Past president ASIS PERU
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Aprender a monitorear y supervisar continuamente el desempe?o de los proveedores para detectar posibles riesgos y problemas. Desarrollar habilidades para construir y mantener relaciones sólidas con los proveedores, lo que puede facilitar la comunicación y la resolución de problemas relacionados con el riesgo.

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Tom Lazenby

Founder @ Mayet Innovating clinical research with purpose built vendor management software.
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Enhance your ability to identify, assess, analyse and mitigate risks associated with your vendors. Don't forget that routine review is require risk management is a project lifecycle process. Develop skills in conducting risk assessments, continuous monitoring, and implementing contingency plans. This ensures that potential risks are managed proactively, safeguarding your organisation.

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4 Vendor Performance Management

Vendor performance management is the skill of measuring and evaluating how well your vendors are meeting your expectations and delivering value to your organization. It involves defining and tracking key performance indicators, conducting audits and reviews, collecting and analyzing data and feedback, and identifying and implementing improvement actions. By learning vendor performance management, you can optimize your vendor performance, quality, and value, align your vendor objectives with your organizational goals, and demonstrate your return on investment.

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Christian Bernard,DSE,CPP

Security and Risk Management Manager IQFARMA / Especialista en Ciberseguridad, Ciberdefensa y Transformación digital / Past president ASIS PERU
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Familiarizarse con las herramientas y tecnologías disponibles para facilitar la gestión de proveedores, como software de gestión de relaciones con proveedores (SRM) o herramientas de gestión de riesgos.

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Tom Lazenby

Founder @ Mayet Innovating clinical research with purpose built vendor management software.
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Acquire the ability to set, monitor, and enforce performance metrics and SLAs with your vendors. Learn how to use performance data to drive continuous improvement and accountability. This skill is key to ensuring that vendors meet your organisation's expectations and contribute positively to your objectives. This is about maintaining the triangle of Process, Data and Communication for standardising data driven communication of expectations.

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5 Vendor Innovation Management

Vendor innovation management is the skill of leveraging your vendors' capabilities and expertise to generate new ideas, solutions, and opportunities for your organization. It involves creating and fostering a culture of innovation, engaging and incentivizing your vendors to share their insights and suggestions, and facilitating and supporting the implementation of innovative initiatives. By learning vendor innovation management, you can increase your organizational agility and adaptability, enhance your competitive edge and differentiation, and create value for your stakeholders.

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Tom Lazenby

Founder @ Mayet Innovating clinical research with purpose built vendor management software.
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Learn to encourage and leverage innovation from your vendors. Develop strategies to identify and incubate innovative ideas that can add value to your organisation. This skill is essential for staying competitive and can turn your vendor relationships into a source of strategic advantage.

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Prachi Vashishth

Third-Party Risk Management | Power BI | Salesforce Citizen Developer | Strategic Sourcing |
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Definitely learning vendor innovation & vendor management tools & strategic sourcing which ultimately result in vendor risk management. But even before learning the above concepts, if you are someone who is starting with risk management it is essential to learn vendor process, learn to analyze, access and enhance vendor capabilities.

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6 Vendor Management Tools

Vendor management tools are the software applications and platforms that help you automate, streamline, and optimize your vendor management processes and activities. They can help you manage your vendor data, contracts, documents, communications, workflows, tasks, reports, and analytics. By learning vendor management tools, you can improve your vendor management efficiency, accuracy, and visibility, reduce your manual work and errors, and integrate your vendor management with your other business functions and systems.

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Christian Bernard,DSE,CPP

Security and Risk Management Manager IQFARMA / Especialista en Ciberseguridad, Ciberdefensa y Transformación digital / Past president ASIS PERU
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Software de Gestión de Relaciones con Proveedores (SRM). Plataformas de Gestión de Riesgos de Proveedores. Software de Gestión de Contratos. Plataformas de Automatización de Procesos (BPM). Herramientas de Inteligencia de Negocios (BI). Plataformas de Gestión de la Cadena de Suministro (SCM). Software de Gestión de Cumplimiento Normativo.

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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?

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You’re a risk manager. What new skills can you learn in Vendor Management to improve your work?

1

2

3

4

5

6

7

1 Strategic Sourcing

2 Vendor Relationship Management

3 Vendor Risk Management

4 Vendor Performance Management

5 Vendor Innovation Management

6 Vendor Management Tools

7 Here’s what else to consider

Vendor Management

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You’re a risk manager. What new skills can you learn in Vendor Management to improve your work?

1

2

3

4

5

6

7

1 Strategic Sourcing

2 Vendor Relationship Management

3 Vendor Risk Management

4 Vendor Performance Management

5 Vendor Innovation Management

6 Vendor Management Tools

7 Here’s what else to consider

Vendor Management

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