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Vendor Management PowerPoint Template

The  Vendor Management PowerPoint Template is a deck of slides representing multiple aspects of the vendor management process. Vendor management is a system by which companies organize the workflow and activities of the service providers or vendors. Vendors are the service providers or suppliers who become a part of the business on a consultancy basis. Companies frequently adopt vendors to enhance their business functions like revenue generation, lesser hiring & training investments, etc. Nowadays, IT vendors have also become a trend. So, vendor management must streamline processes relevant to vendors, e.g., selection, costs, or risk management.

Our 100% editable Vendor Management PowerPoint Template includes slides on various subjects about vendor management process. Professionals can use this vendor management template to present their management schema before stakeholders, employees, or business partners. These vendor management slides can also be a part of a formal business presentation where the agenda introduces a business opportunity for vendors.

Vendor management slide deck has the following slides:

• Agenda: This picture slide presents the business meeting agenda as key points of the vendor management presentation.
• Vendor Timeline: The two slides of the horizontal vendor timeline are designed using graphic icons arranged in a row of circular shapes. Professionals can show the steps of a vendor management process using these animated slides.
• Searching Vendors: It is a flow diagram slide comprising five arrowheads arranged line-wise. The particular steps of vendor searching, e.g., finding, requesting for quotation, short-listing, evaluation, and briefing, can be displayed using the representative icons.
• Vendor Classification: The three tiers of vendors are distributed among the three tables of this template slide based on the predicted risk imposition of the company. The high-risk vendors can be placed in the first tier, and the risk factor lessens till the third one.
• Selection Process: The vendor selection process steps are represented through the two available formats in this vendor management slide template. Users can either display the stages as circular shapes or as flow diagrams. The user can use specific PowerPoint icons for each step, i.e., analysis, identification, evaluation, briefing, and demos.
• Request for Vendor Proposal: This slide is a chart for mentioning the deliverables of a vendor quotation or proposal. Professionals can easily edit each section according to their requirements.
• VOM (Vendor Operating Model): The slide can help mention each vendor operating model’s key features, pros, and risks. In a business meeting, professionals can decide their mode of operation based on this analysis charter.
• Vertical Selection Timeline: A straightforward timeline is presented using this template slide. Presenters can mention the number of days or weeks and each milestone or event of the process.
• Days Plans: This slide is divided into three sections, each representing the key activities for the 30, 50, and 90 days of the new vendor. It can act as a planner to practically evaluate the potential benefit of each service provider.
• Evaluation Matrix and Rating Scorecard: These slides are the standards to check the working and competence of different vendors. Users can edit and define their standards on this slide.

Presenters can edit this vendor management PPT template using all versions of PowerPoint, Google Slides, and Keynote. The vendor PPT template is 100% editable, and users can modify it any way they want. So, grab this vendor management presentation template for preparing an engaging business presentation!

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How to Write a Clear, Successful Vendor Management Program

By Diana Ramos | April 1, 2021 (updated November 2, 2021)

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In this guide, learn how to create a vendor management program and supporting documents to manage your third-party collaborators in an organized fashion. Plus, experts share tools and tips to help you become an outsourcing insider. 

Included on this page, you’ll find the elements in vendor management program development , a vendor management program sample and template , and a chart on IT vendor management programs and data security compliance regulations .

What Is a Vendor Management Program?

A vendor management program (VMP) refers to the strategic and tactical measures that a company employs to work efficiently with its suppliers. Vendor management programs include policies and procedures that are explained in shared documents, and they serve to drive cost control, risk management, service, and quality excellence.

Why Do You Need a Vendor Management Program?

Companies of all sizes need vendor management programs to maximize the benefits of outsourcing. With the right plan in place, organizations increase the value of vendor relationships, mitigate potential risks, and create long-lasting, positive organizational change. 

Jon M. Quigley, author and Value Transformation, LLC Principal, has found in his many vendor management consulting engagements that synergistic vendor relationships simply make sense for all parties. “To win in a global, intensely competitive economy, use data to drive decision making and collaborate with vendors,” Quigley advises. “Negotiating to get to the lowest price isn’t a best practice in most cases, particularly for critical vendors. The goal is to work with vendors to reach company goals through mutually satisfying agreements and performance that drive profitability, innovation, and transformation.” 

A formal vendor management program makes it easier to drive improvements that generate organization-wide benefits throughout the vendor lifecycle.

Benefits of vendor management programs include improvement in the following areas:

• Administrative Efficiencies: Data is fundamental to administering vendor programs effectively. Vendor management software cuts down on data duplication and loss of information and contracts, and it reduces administration labor errors and the resulting costs. By having a central place to store all your vendor data, you can better manage relationships and improve planning.
• Risk Management: Vendor management tools and vendor management programs provide the data you need to identify risks. Armed with data, it’s easier to mitigate risks or choose another vendor that aligns more closely to your desired risk profile. Mitigate risk throughout the contract lifecycle with vendor risk management (VRM) strategies and tactics such as those found in “ Risk Management Strategies and Tips .” 
• Vendor Performance and Quality: Vendor quality should include robust support after the sale, flexible credit management, good customer service, and strong market knowledge. Quality vendors take a “we, not me” approach and work with your team to innovate products and processes. Learn about methods that foster collaboration and generate quality results with “ Vendor Performance Management .”
• Cost Controls: Increased visibility helps control costs. Additionally, collaborative relationships support rational rate negotiation and access to incentives and discounts that increase profit margins.
• Vendor Acquisition: One of the pillars of vendor management is learning the value of each vendor. Rank vendors by importance to help reorganize your roster and, if necessary, to end the relationship with some suppliers. Once you consolidate vendors, you’ll have an even more refined set of criteria from which to select new vendors and define the types of agreements and working relationships that make sense.
• Relationships: Improved processes also support improved relationships. These upgrades build loyalty and help you retain your most valued suppliers in the long run.
• Onboarding: Give vendors information about policies, procedures, and expectations from the beginning of the relationship to save time and resources, and to support better workflows throughout the vendor lifecycle. Learn the keys to effective onboarding with “ Vendor Onboarding: Best Practices, Process Flows, and Checklists .”
• Brand Reputation: Better performance, efficiency, quality, and other improvements will raise your profile, create good buzz, and boost your brand.

Learn more about vendor management benefits and how to make smarter vendor management moves by reading our “ Guide to Vendor Management .”

Elements of a Vendor Management Program

The elements of a vendor management program define your goals and standards for suppliers, as well as set quality, legal, and financial guidelines. The features you emphasize in your program will vary depending on your business and vendors. 

Gerard Blokdyk is the CEO of The Art of Service and an author of more than 50 business management guides, including Effective Vendor Management: A Complete Guide (2020 Edition) . He says that successful vendor management begins with determining specific organizational needs. “Begin with due diligence within your organization. Understand your own needs and make a thorough self-assessment before you begin any program. Doing so will prevent problems in the long run.”

Learn more about organizing the way you work with suppliers with “The Guide to Vendor Management Process" .

Step One: Prepare for Your Vendor Management Program

You need to address several different areas before you create a vendor management program. One such aspect is the self-assessment , which will help you to prepare the purpose of your program and identify the vendors that will receive the final document. Blokdyk says that creating a self-assessment ensures that you set up the right framework. 

The following tool is one of the self-assessment checklists in The Art of Service’s Vendor Management: A Complete Guide - 2021 Edition. The questionnaire will help you understand your needs and what to include to reach program goals.

Provided courtesy of The Art of Service

Download the Vendor Program Management Needs Checklist

Other elements you’ll need to address before you set up your program include the following:

• Risk Management Procedures: Determine the risks that require mitigation, as well as how to and who will manage the overall process. If you’re new to this type of assessment, learn more about the process in “ Project Risk Management: Best Practices, Tips, and Expert Advice .”
• Vendor Comparison: Assess vendors and compare their capabilities, strengths, weaknesses, and other attributes. Before you release your vendor management program, get expert advice by reading “ Vendor Assessment and Evaluation Simplified .”
• Vendor Risk Assessments : Grade potential or current vendors as part of your third-party due diligence. If you’re new to the process, review the “ Simplified Guide to Vendor Risk Assessment .”

Step Two: Elements to Use to Create a Vendor Management Program and Document

In your vendor management program, be sure to cover vendor selection and certification, policies, compliance, confidentiality, standards, oversight, and termination information. The completed vendor management program systemizes and documents policies, procedures, and relationship standards that will govern how you work with suppliers. 

The depth, length, and content of vendor management program documentation vary. Some companies use the vendor management program document internally, as a high-level overview for executives to understand how their vendor team operates and protects company interests. Other companies share the document with internal and external stakeholders (including potential vendors) in order to set expectations or as part of the onboarding process. Add contracts, signature forms, and links to portals that collect necessary documentation in the document you share with vendors. 

Additionally, seek legal review to ensure the company is protected and that compliance standards are clear.

Here are some topics companies often cover in their official vendor management program and supporting documents:

• Overview: This details the company background and the purpose of the document.
• Vendor Selection: Describe the vendor consideration screening process. 
• Policies and Procedures: List any accountability standards set by the company.
• Compliance: This includes the company or legal rules and regulations that govern company activities listed in the vendor management program document. These are the issues that govern how vendors (including IT vendors) must work in data security and customer or patient privacy.
• Confidentiality: Companies typically restrict vendors from sharing trade secrets. They may also require confidentiality due to compliance standards.
• Relationship and Contract Standards: This section defines legal and other expectations for conduct and deliverables, including codes of conduct.
• Required Documentation: Often, vendors need to supply documentation to verify various items, including proof of licensing, equipment certifications, engineering design, drug screens, competencies, and educational degrees.
• Oversight: This section explains how vendors should execute work and how it will be monitored by the company.
• Disciplinary Action and Termination: Describe what will occur if vendors don’t meet criteria, along with any causes for termination.

Vendor Management Program Sample and Template

There is no one-size-fits-all vendor management program — every company builds its program based on its type of business, company standards for quality and service, vendor roster, expectations, and compliance requirements.

“Vendor management programs make relationships more frictionless and productive,” says Quigley. “Documents can and should be shared with stakeholders as a best practice.”  

Download Vendor Management Program Template

Microsoft Word | Adobe PDF  | Google Doc

This sample vendor management program comes from an insurance company. It includes common elements, such as an overview, oversight procedures, policies and program responsibility, vendor rankings, confidentiality, risk management standards, and more. Use the customizable template to generate a new document or refine your current vendor management program, and add links to other documents or vendor portals as needed.

Step Three: What to Do After Vendor Selection and Contracting

Once you select your vendors and sort out official contracts, you’ll need to manage and monitor performance on an ongoing basis. By staying on top of vendor performance, you help ensure that relationships and deliverables flow smoothly and that you keep risks at bay. Take care to regularly monitor the vendor relationship throughout its lifecycle; doing so will fill the gaps between when you began work with the vendor and bi-annual or annual assessment.

IT Vendor Management Programs, Data Security Monitoring, and Regulations

An IT vendor management program ensures that technologies, processes, policies, and procedures meet your business needs, industry standards, and security and government regulations. The need for IT vendor management has grown in direct proportion to data use in business and outsourcing. 

Having full IT capabilities in-house is rare. Many companies function more effectively and profitably by outsourcing application development, bill processing, cloud computing, data backups, managed security, network monitoring, receivables collections, payroll services, telecommunications platforms, and other services. That said, there is risk involved when you outsource essential functions that often affect sensitive data.

As Blokdyk says, “Even with risk management protocols in place, organizations often get the sinking feeling that they don’t have a clear picture of the security position of their most critical vendors.

“For example,” he continues, “Ask: Do the vendor’s mobile server software, client software, application management capabilities, device security, and management abilities meet your requirements for performance? Is your vendor securing that data in a manner consistent with your data classification requirements and regulations? Make sure that your vendor’s subcontractors are also risk-checked and held to necessary standards, laws, and applicable regulations.” 

You will usually include IT management protocols in contracts and specify them in the larger vendor management program. Risk management audits are essential, and in many cases, auditors should certify that you and your vendors comply with applicable laws and regulations. 

Below you’ll find a downloadable chart that includes an overview of some of the many national and international data standards and regulations related to IT, data security, and privacy:

Download IT Vendor Management Data Security and Regulations Overview

GDPR and Vendor Management Programs

GDPR is the most stringent privacy and security law in the world. Although it is a European Union (EU) law, it imposes obligations on all entities that sell to and store personal data about people living in the EU.

“IT compliance needs to be emphasized in all effective vendor management programs,” Blokdyk says. “It doesn’t matter what size company you have. Not understanding or complying with laws outside of the United States, like the GDPR, can be costly.” Penalties can be steep. Fines for non-compliance can reach up to 20 million euros, depending on the severity of the violation. 

Enterprise risk management software and vendor risk management solutions can detect and mitigate risks and enforce your IT standards. To identify the solution that is right for your business, read “ Pick the Right Risk Management Software .”

The Role of Vendor Management Teams

Vendor management teams manage vendor relationships to ensure that they align with company goals, and help to foster a smooth, fiscally responsible partnership. Vendor management teams also serve as liaisons between vendors and company departments. 

Quigley provides an example of vendor management team composition based on his experience with large consulting firms. “The team size and personnel vary depending upon the complexity of the material acquisition,” explains Quigley. 

Often, the team resides in a vendor management office (VMO) , which is the internal unit that evaluates third-party services and goods providers, supervises daily interactions, and manages longer-term relationships based on the vendor management program dictates. Because of the increasing importance and emphasis on technology, a separate IT vendor management office operates within the VMO. IT vendor management offices establish and monitor IT vendor relationships, set up insourcing and outsourcing standards, and determine risk management policies.

Vendor Management Program Best Practices

Vendor management program (VMP) best practices should support your organization’s stated goals and overall performance. Best practices support overall company goals, use data and technology to continuously improve, provide clarity, and improve relationships.

Below are some VMP best practices:

• Secure Top-Down Planning: Get leadership buy-in from the start and look to right-size the vendor management program for your company. 
• Keep KPIs in Mind: Simplify vendor evaluations with KPI scorecards. When you define and monitor goals, you communicate what you need and how you will evaluate deliverables from the first day of the engagement. 
• Clarity: The policies, procedures, strategies, and tactics of your VMP should be clear to both internal and external stakeholders. Reach out to the people who regularly interact with vendors so that they can review all aspects of the program to ensure it functions in the real world.
• Foster Relationships: Take the time to engage stakeholders at your company and with your vendors to keep communication lines open. Grow the relationship and see what opportunities you can work on with the vendor to improve and innovate.
• Take Advantage of Technology: It’s easier to track every aspect of vendor management effectively with the right tools to centralize data, track risks, and monitor performance. 

For more best practices, refer to the “ Vendor Management Best Practices Guide .”

Set Up and Maintain Your Vendor Management Program with Smartsheet

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Vendor Management and Metrics

Mar 12, 2019

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Vendor Management and Metrics. Date: 03/05/2007. AT Kearney’s IT/Telecom Vendor Facts. IT/Telecom service, software and equipment vendors play a vital role in the our organization… Use approximately 200 vendors in 35 countries throughout the world

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Vendor Management and Metrics Date: 03/05/2007

AT Kearney’s IT/Telecom Vendor Facts • IT/Telecom service, software and equipment vendors play a vital role in the our organization… • Use approximately 200 vendors in 35 countries throughout the world • These vendors generate 3,400 invoices annually • Vendor purchases account for 67% of total IT/Telecom spending

Internally Operated Overall Service Management Technology Architecture and Design Network Systems Applications Security Infrastructure Administration Data center management Network administration Systems administration Voice PBX administration User security administration Event monitoring, escalation and tracking Problem management, Change management Client Services User desk side support Software configuration and distribution PC and software asset management Procurement and asset management Financial administration External / Vendor Purchased Data network provisions Telephony services Fixed line Mobile Remote access services Application development Consulting / temporary labor Data center facilities Help Desk Hardware and software purchases Internally Managed Vs. Vendor Provided • AT Kearney retains the most strategic business functions internally • Nonetheless, numerous critical services are purchased from third party vendors… many of which require formal arrangement and significant management time

Vendor Size Distribution • 80% of our vendor spend comes from 20% of our vendors globally • Most management effort is concentrated around the largest vendor relationships Less formal arrangements, often no contract, one off purchases, non-strategic product or service Includes telecommunications and data network services and major hardware and software providers. The strategic importance and large annual spend drive a formal contractual and relationship management approach.

The most critical vendors require a carefully managed relationship • Seek to centrally manage vendor relationship and contract • Unify spend commitments globally whenever possible • Minimize risk by avoiding minimum spend requirements – clearly understand how much savings are gained by making the commitments • Establish the SLA at contract signing -- do not wait until after the agreement is signed to establish the SLA) • Ensure SLAs are achievable for supplier and relevant to the business • Tie penalties and/or material breach to SLA performance; ensure contract leverage to cancel agreement based on non-performance • Understand that metrics are easily manipulated -- Clearly define measurement calculation, measurement frequency and allowable exclusions and exceptions • Do not agree to automatic renewal provisions • Attempt to establish dynamic pricing that ensures prices will drop as general industry pricing drops; if this is not possible, keep contract duration as short as possible • Clearly define all applicable charges and billing calculations

The vendor’s performance and the relevance of the vendor’s service should be continually monitored and assessed • Carefully track contract start and end dates and minimum spend commitments for each supplier • Understand financial objectives of the agreement and monitor whether the expenses associated with the vendor are within the planned estimates • Monitor service performance and metrics • Ensure ATK service objectives are being met • Ensure that vendor service commitments are being met • Ensure that vendors pricing commitments match agreed upon pricing • Schedule regular vendor review meetings to review services • Periodically audit the underlying data driving the published metrics • Don’t rely only on metrics to determine whether the service is successful; monitor whether the service as purchased is meeting the requirements of the business • Compare vendor performance to published industry metrics where available

Vendor service metrics are generally reported on a monthly basis; some of the key metrics reviewed include… • Help Desk • Average Time to Answer (ATA): Less than 30 seconds • Abandonment Rate: Less than 10% of calls on average • First Call resolution Rate: More than 75% of requests • Customer Satisfaction Index: Based on survey response after the case is closed • Data Center (ATK uses a co-location facility) • Availability – based on power, fire detection and suppression, environmentals and physical security sufficient to keep the data center operating and available • Data network and fixed line voice provisions • Network availability (i.e. up time) • Network performance – (i.e. round trip delays) • Time to respond / repair – by event priority • Equipment procurement and delivery • Order to delivery cycle time

Continually renegotiate service requirements and implement improvements • Early in the relationship, engage vendor personnel as part of the overall support team so that overall project objectives are known and adopted throughout the extended team • Use regular vendor meetings to discuss how the service is working from both perspectives • Seek feedback from the supplier regarding our own internal business procedures that could be hindering service quality • Establish a vendor improvement plan when necessary • Identify actions to be taken and time frame for when results will be realized • Promptly escalate service issues to supplier’s Sr. management • Where a service is being delivered as requested, but the service is failing to meet user requirements, the service terms must be renegotiated • At the end of the agreement term, re-negotiate from a position of power • Leave enough time to seek alternate suppliers if necessary • Make sure the vendor knows that you have a credible alternative • Obtain proposals for long and short contract terms and for large and small spend commitments in order to assess the risk reward relationship between the options

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