Need for Vendor Management in Procurement To Transform
Historically, vendor management teams built strong skill sets in acquiring services at low/competitive unit-cost prices and measuring vendor performance. But the world changed, and there is a growing misalignment between the purchasing and vendor management and the business units they serve. Businesses say the vendor management teams buy things cheaply but don’t buy the things that meet the business needs or deliver the outcomes the business wants. Businesses are asking for more value, and it’s not unusual for Everest Group’s vendor management and CPO clients to ask us for help in how they can better partner with their company’s business. This blog looks at how the current practices are ineffective in aligning with the business and how vendor management needs to change so it can deliver the value the business expects.
