What tasks does vendors management have?

Vendor management as CRM

Due to the increasing shift of articles and know-how to vendors, the complexity and dependency on their customers has increased more and more. In a sense, a close network is created that requires a contemporary understanding of tasks and their roles for control and management. Vendor management also plays an important role in project management.

It is therefore time to think about up-to-date vendor management and its tasks. The outdated way of thinking that vendors were condescendingly viewed by their customers as nonsensical cost factors has fundamentally changed.

Instead of a mindless order acceptance, the importance with focus on proactive advice on products and technologies has come to the fore. The position of the vendors also has a decisive role in the company’s added value and is important in the customer / vendor relationship. This is why you can see vendor management as a form of customer relationship management (CRM).

Successful vendor management is primarily characterized by harmonious cooperation between customers and vendors, i.e. both parties work on an equal footing and respect each other. As in all other relationships, communication and information are important parts of a successful relationship in vendor management.

In this way, the relationship can be enhanced, by informing each other about current plans concerning new products, manufacturing processes and in return about new materials, production processes, etc., or simply about the addition of new products or materials to the product line.

In addition to networking, the following aspects could also support and help the main task:

• • • Complete overview of the vendor’s product portfolio
    • Proactive advice from the vendor instead of accepting orders
    • Knowledge of the vendor about the own in-house products
    • Discussion potential about future plans