What is Vendor Relationship Management

Last updated: 2024-03-09
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What does Vendor Relationship Management mean?

Vendor (or Supplier) Relationship Management encompasses all activities and processes around suppliers and vendors throughout their lifecycle. This means from their search and selection, through the conclusion of contracts, delivery management, to the termination of the contractual relationship. Supplier relationship management mainly includes the following processes and activities:

  • Keeping information on the market situation of suppliers' offers
  • Keeping information about suppliers
  • Selection of suppliers
  • Supplier onboarding
  • Supplier support and care
  • Communication with suppliers
  • Supplier compliance and quality management (Quality, Risk and Compliance)
  • Solving emergency situations and reporting defects and poor quality deliveries
  • Ordering
  • Taking delivery
  • Invoicing for deliveries

Well and correctly set processes of relations with suppliers mean a higher quality of deliveries and a reduction of risks associated with deliveries and the entire purchase. Supplier relationship management is part of purchasing processes.

meaning of VRM Vendor relationship management

How Aptien VRM can help you manage your supplier relationships

You will keep key information in the records of companies or suppliers. Here you keep detailed information about your suppliers.