How are your vendor relationships? How are you service delivery times? Do they deliver as promised?Safetly? Are you satisfied with the qualified value of your purchase? It has come to the attention of the business world at large, that to realize the best RIO on your IT investments, that vendors need to be managed from the word go, and not at the very end of the processes. This is that value that a VMO can bring to your business.
Within the procurement processes, there are three different departments that must represent a strong front to the vendor. This can be a challenge since the three departments have different sets of skills, methods, and processes. This is were a VMO steps in, facilitating contracts across the three departments and improving vendor relationships.
It is no surprise that business are looking at establishing a VMO position in there company structure. Lowering overall costs and improving supplier relationships to attain the best value are the earmarks of a goof VMO.
8 guiding principals to follow to make make for VMO's:
1. Manage VMO as a business with in a business
2. Leverage consolidated purchasing power
3. Continuously manage contractual relationships with suppliers
4. Treat suppliers as an extension of internal resources
5. Use the minimum numbers of suppliers possible
6. Select the highest valued supplier; not the lowest purchasing price
7. Negotiate win/win deals with all suppliers that balance risk, speed, and performance
8. Actively monitor, manage, and improve supplier performance
Improving the time cycle of purchases and reducing costs are a VMO's top priority. Can your businesses benefit from this?Lastly, it transforms IT sourcing from a reactive function into an advisory function that facilitates the attainment of business and IT goals through strong supplier relationship management.
Within the procurement processes, there are three different departments that must represent a strong front to the vendor. This can be a challenge since the three departments have different sets of skills, methods, and processes. This is were a VMO steps in, facilitating contracts across the three departments and improving vendor relationships.
It is no surprise that business are looking at establishing a VMO position in there company structure. Lowering overall costs and improving supplier relationships to attain the best value are the earmarks of a goof VMO.
8 guiding principals to follow to make make for VMO's:
1. Manage VMO as a business with in a business
2. Leverage consolidated purchasing power
3. Continuously manage contractual relationships with suppliers
4. Treat suppliers as an extension of internal resources
5. Use the minimum numbers of suppliers possible
6. Select the highest valued supplier; not the lowest purchasing price
7. Negotiate win/win deals with all suppliers that balance risk, speed, and performance
8. Actively monitor, manage, and improve supplier performance
Improving the time cycle of purchases and reducing costs are a VMO's top priority. Can your businesses benefit from this?Lastly, it transforms IT sourcing from a reactive function into an advisory function that facilitates the attainment of business and IT goals through strong supplier relationship management.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT expense reduction consulting solution
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