How Effective Vendor Management Improves Business Performance Vendor Management is the process of selecting, onboarding, managing, evaluating, and maintaining relationships with external suppliers to ensure they deliver products or services that meet business requirements while minimizing cost, risk, and operational disruptions. What is Vendor Management? Vendor Management is a structured approach to ensuring third-party vendors: Deliver quality products and services Meet agreed Service Level Agreements (SLAs) Control costs Reduce operational risks Support business objectives Build long-term strategic partnerships It spans the entire vendor lifecycle—from identifying a need to contract renewal or termination. Vendor Management Process 1. Identify Business Requirements Determine: Scope of work Budget Technical requirements Security requirements Compliance needs Timeline Deliverables Business case Requirement document Vendor evaluation criteria 2. Vendor Identification Sources inclu...