4 Key Ways to Streamline Vendor Relationships with Vendor Management
Technology has allowed companies to diversify and execute a large range of business tasks in-house. In a lot of other ways, though, technology has also made it more possible and less expensive to outsource tasks securely. A social media company, for example, may not need to pay for an in-house database. It’s often less expensive and more effective to outsource that task to a vendor. Managing how your company interacts, shares data, and keeps track of those interactions with your vendor is vital to keeping those methods working smoothly.
One approach to outsourcing to a vendor is to not have an approach. In other words, you let the vendor drive the bus and forget about everything they’re taking care of. This approach, though, is sloppy and can get you in a lot of trouble – which is why you should use some form of IT business management software. Vendor Management software specifically offers a number of benefits that will help you keep the vendor relationship healthy and streamlined.
Documents in One Place
Vendor management software keeps all the documents related to the relationship in one place. This includes the original contract and other agreements. Imagine what it would be like otherwise. It’s possible that without a central location you could lose important files, or more dangerously someone could save sensitive information in an unsecured location.
Allow and Restrict Access
Vendors need access to your server and information, at least to some degree. One approach is to just give them all your information – login, passwords, etc. – up front, but that’s not the most secure approach. Vendor management software allows you to grant access to specific places during the time frame that the vendor will need it. When they don’t need that access any longer, you can revoke it. This establishes clear bounds in the business relationship and enables the vendor to do its job effectively.
See Reports and Performance
You want to see the value that the vendor provides to your company. The vendor also wants to show you that value to make sure that you’ll be happy with their work. Using the proper software a vendor can share reports with you or give you direct access to their working documents. Additionally you can drop in and directly track progress to ensure that everything is running smoothly and according to plan. This keeps you both on the same page, keeping communication at its most efficient and allowing you to change your tactic mid-course if necessary.
Track Compliance Issues
All companies have to handle compliance issues, at least to some degree. This is hard enough when you’re just talking about making sure your company is in compliance with every regulation that get’s thrown your way. It becomes harder when you invite a third-party company into your process. IT analytics helps you keep the vendor on the same page and ensures that the vendor doesn’t breach any compliance guidelines without your knowledge. This is especially important if you work in the financial sector.