Perspectives

The Vendor Management Program Office

Five deadly sins of vendor management

​ Many organizations are not achieving the business objectives they intended when establishing or expanding their VMPOs. Their limited achievements can likely be attributed to some of the following misperceptions and challenges.

As outsourcing continues to go mainstream, organizations are not only considering opportunities to offshore processes but also to outsource them within the originating country. Processes such as information technology, finance, and human resources continue to be the main focus, but others, such as legal, procurement and sales/marketing, are becoming more common. 

Meanwhile, some organizations are moving in the opposite direction of bringing off-shored processes back in-house. Whether vendors are being engaged on-shore, offshore or by a captive organization, organizations increasingly need a strong and capable VMPO.

“The Vendor Management Program Office (VMPO)”, highlights the five deadly sins of vendor management:

  • Sourcing and procurement vs. vendor management
  • Reliance on the service provider to “run the show”
  • Optimal vendor management operating model
  • Importance of service integration
  • Consistent risk management processes​

 

​Interrelation between Strategic Sourcing, Procurement Operations and Vendor Management​

Did you find this useful?