Understanding the Objectives of Vendor Management

by Eric Buel

In today's highly integrated IT economy, many corporations have experienced outsourcing and enlisted the help of outside parties to deliver services. The use of third parties is so widespread, in fact, that the practice is no longer viewed as a strategy to satisfy IT requirements but as a tool to help organizations effectively meet customer needs. Most major companies now have significant procurement and vendor management experience, and they have established processes to achieve success. But what are the characteristics of successful vendor management? In leveraging third parties, what makes some companies successful while others struggle? Before we attempt to answer these questions, let's examine the key elements of a best-in-class procurement process and establish where vendor management fits in.