Vendor Management Quality Control - A Key Role for the VMO

Here are some key strategies that we think every Vendor Management Office should have in place for managing vendor compliance:

1. Site visits: A no-brainer you say? You'd be surprised at how many vendors never get site visits from their clients. In actuality, the vendor management office should create a schedule for "mutual" visits whereby clients visit the vendor sites and the vendor is required to visit a client site on some regularly scheduled frequency. Of course it is important to focus on the key vendors but visiting smaller vendors who may have strategic products or services should also be kept at the forefront.

2. Issue management: Vendors should know the channels to pursue to escalate issues that cannot be resolved at the day-to-day level. There may be billing issues, there may be fulfillment issues, and there may be long-term viability issues which may require the involvement of executive leadership. Vendors should have a means of communicating their concerns in writing to the VMO on a regular basis and request assistance in resolving issues that cannot be resolved at the operational level.

3. Vendor Scorecards: Scary? Shouldn't be. Vendor scorecards can be simple excel based, five question surveys or can be more elaborate with the ability to rank a vendor as A, B, C depending on the various criteria that are important to your organization. And the simpler the scorecard, the better chance of it being used effectively.So create scorecards that can easily be filled out by the stakeholders and that won't require a PhD to interprete and provide feedback to the vendor.

4. Outsource experts to manage quality: Let's face it, quality control is a whole another discipline and your internal team may not have the time, the training, or the resources to execute it. So, what to do? Well, hire people who are experts in managing vendor quality control. This can result in you saving money by making sure the quality control program is run effectively and problems are quickly highlighted and resolved before they create real damaging situations.

Vendor quality control management is an important role that a Vendor Management Office should be performing. If your Vendor Management Office is not performing a quality control role, its time they start doing so. Check out our advisory services to see how we can help you with your quality control management needs.

Vendor Management Quality Control - A Key Role for the VMO

By: Pallavi Barnwal

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