Vendor Management

VENDOR MANAGEMENT

Vendor management is a process of governing vendors through relationship management, selection of vendors, defining criteria for vendor to give a good result in minimum time.

Primary Vendor(s) – Refers to the direct contractual relationship between a consulting vendor and the end client. A typical vendor management program will have a number of primary vendors, but there can be one primary vendor who can then use sub-vendors. Sub-Vendor(s) – Those staffing firms that work through a primary vendor.

RELATED TERMINOLOGIES •

Vendor- A vendor, or a supplier, meaning anyone who provides goods or services to a company. A vendor often manufactures and sells those items to a customer.

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Buyer- A buyer is a person who purchases finished goods, typically for resale, for a firm, government, or organization. Or a person who purchases material used to make goods is sometimes called a purchasing agent.

Supply Chain Management- It is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-ofconsumption.

VOP (Vendor on Premise)- is a vendor that sets up shop on the client's premises. They are concerned with filling the labor needs and requirements of the client. The VOP does this either by sourcing labor directly from themselves, or from other suppliers, whom may be their competitors. Also, the VOP manages and coordinates this labor for the client.

MSP (Managed Service Provider)manages vendors and measure their effectiveness for selection according to the client's standards and requirements. MSPs generally do not recruit directly, but try to find the best suppliers of vendors according to the client's requirements.

VMS – Vendor Management System Generally refers to the software that’s in place that facilitates the requisitioning and procurement process of filling temporary staffing requirements. A typical system tracks costs and integrates pertinent data into existing financial and human resources databases.

VMO – Vendor Management Organization. The body of policies and procedures that surround the VMS software. The VMO can be either managed internally by the client or outsourced to a third-party such as a Managed Services Provider (MSP).

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Code of Conduct- A code of conduct is a set of rules outlining the responsibilities of or proper practices for an individual or organization. Related concepts include ethical codes . Agents- An agent is an individual or a small company, which helps to facilitate outsourcing deals but leaves the actual price negotiation to the two parties. Organization Policy- The policy which includes the norm of the organizations regarding wages, working hours, working conditions, labor unions and rights.

Contingent Workforce- A contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants. Contingent Workforce Management (CWM) - It is the strategic approach to managing an organization's contingent workforce in a way that it reduces the company's cost in the management of contingent employees and mitigates the company's risk in employing them.