Third-party vendor management identifies, assesses, and monitors how secure third suppliers are in mitigating an organization’s risk exposure. It also fosters better collaboration with suppliers by streamlining processes. Third-party vendor management can help companies save money, increase return on investment, and take products to the end user or market faster.
Without proper vendor management, many things can go wrong. For example, vendor costs can grow quickly or uncontrollably when an organization gets locked into long-term vendor contracts, which might have outlived their usefulness. Also, a vendor may fail to deliver on their promise. A comprehensive vendor management plan should capture all the rules, behaviors, and access that an organization agrees upon with its third-party suppliers. The risk management plan should also cover product or service testing details to ensure that the third-party vendor can deliver. In addition, to manage vendor risk, the management plan should have a checklist that covers all the steps each third-party vendor must follow when supplying a product or service.
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AuthorStewart Strawbridge rode The Bruce to victory in the 111th running of the Maryland Hunt Cup in 2007 Archives
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