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Clarify about supplier management system and vendor management system
Superior supplier management performance is not a one-time event and is not as easy as turning the palm of the hand. It should be a continuous improvement process. The starting point is to understand the current performance and where it can be improved.
The Supplier Management System ensures that external services and configuration items, required for service delivery, are available on demand and agreed upon at the service level.
Supplier Management is responsible for consolidating requirements for external service and supplies, scouring the market for suppliers and negotiating with suppliers, as well as contracting and monitoring external services and service suppliers. Supplier relationship management and supplier performance are additional tasks. Supplier Management is also responsible for establishing and updating the supplier base framework, which is the Supplier Strategy and Supplier Policy.
What is the purpose of Supplier Management?
The aim of the Supply Management Systems is plan, control and monitor service providers and IT infrastructures and ensure that the agreed levels of service are maintained. This goal has to be accomplished by balancing the quality of service with the economic cost.
The main objectives that aid suppliers should provide include inventory reduction, quality improvement, document elimination, and improved handling of incoming goods.
Effectiveness Of Vendor Management System Management
The Vendor Management System is a Web-based application that supports the Internet to act as a business mechanism, managing and obtaining temporary staffing services and, in some cases, permanent placement services – as well as external contracting or contingent workforce.
You may already know that vendors can provide almost any type of goods and services to a company. This partner can be a producer, supplier, contractor, creative, or anyone who fulfills a need that neither company nor employees can provide.
In making goods and service providers a partner, a system is needed that can manage vendors, calculate and mitigate risks, and manage relationships.
Various benefits that will be obtained when using a vendor, such as speeding up the process, documentation, and approval of procurement of goods. Then unite information, products, and services of vendors, as well as speed up the process of evaluating the procurement of goods and services.
And there are many more advantages, but this time I will not discuss all of them here. The conclusion from the discussion above is that the vendor management system is the management of vendors or partners who are part of the procurement of goods and services.
By implementing appropriate vendor management and having the right implementation strategy will provide benefits for the company.
So, benefits such as speeding up the process, documentation, and approval of procurement of goods; unifying information, products, and services of vendors, as well as speeding up the evaluation process for procurement of goods and services will be obtained if implementing this system.
To make vendor implementation successful, there are several strategies that need to be considered, ranging from information transparency, commitment, vendor collaboration, long-term collaboration, understanding vendor business, to risk management.