What is Vendor Relationship Management

What does Vendor Relationship Management mean?

Vendor (or Supplier) Relationship Management involves systematic processes to manage relationships with external partners and vendors, ensuring efficient collaboration, compliance, and performance monitoring. VRM 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:

Key Areas of Vendor Relationship Management

• Vendor Selection
• Vendor Onboarding 
• Vendor Contract Management
• Vendor Performance Monitoring
• Vendor Risk Management
• Communication and Collaboration with Vendors
• Compliance Management of Vendors, and Regulatory Adherence
• Vendor Exit

How Aptien VRM can help you manage your supplier relationships

Centralized Vendor Database

• Centralized Vendor Database provides a single source of truth for all vendor-related information, making it easier to manage and access data.
• Track all vendors,  keep key information in the vendor companies or suppliers. 

Vendor Selection

• Identifying suitable partners and vendors on the Vendor Market

Vendor Onboarding 

• Streamlines the process of adding new vendors and compliance with company policies and regulatory requirements.

Vendor Contract Management

• Ensures that all contractual obligations are met and documented.
• Maintaining organized records of vendor contracts, terms, and critical dates to ensure compliance and facilitate renewals or negotiations.

Vendor Performance Monitoring

• Tracks vendor performance against predefined metrics and service level agreements (SLAs).
• Regular assessment of partners and vendors against predefined metrics to ensure alignment with business objectives and service quality.

Vendor Risk Management

• Identifies, assesses, and manages risks associated with vendors.
• Provides tools for vendor risk mitigation.

Communication and Collaboration with Vendors:

• Provides a centralized platform for all vendor-related interactions.
• Keeping records and minutes of negotiations and meetings with vendors and suppliers

Compliance Management of Vendors, and Regulatory Adherence:

• Ensures vendors comply with legal, regulatory, and internal policies.
• Automates compliance checks and audits