VENDOR

MANAGEMENT
Vendor management is a process of
governing vendors through relationship
management, selection of vendors,
defining criteria for vendor to give a good
result in minimum time.
Primary Vendor(s) – Refers to the direct
contractual relationship between a
consulting vendor and the end client. A
typical vendor management program will
have a number of primary vendors, but
there can be one primary vendor who can
then use sub-vendors.
Sub-Vendor(s) – Those staffing firms that
work through a primary vendor.
 RELATED TERMINOLOGIES
• Vendor- A vendor, or a supplier, meaning
anyone who provides goods or services to a
company. A vendor often manufactures and
sells those items to a customer.

• Buyer- A buyer is a person who purchases

finished goods, typically for resale, for a firm,
government, or organization. Or a person who
purchases material used to make goods is
sometimes called a purchasing agent.
Supply Chain Management- It is the
process of planning, implementing and
controlling the operations of the
supply chain as efficiently as possible.
Supply Chain Management spans all
movement and storage of raw materials,
work-in-process inventory, and finished
goods from point-of-origin to point-of-
consumption.
VOP (Vendor on Premise)- is a vendor that
sets up shop on the client's premises. They are
concerned with filling the labor needs and
requirements of the client.
The VOP does this either by sourcing labor
directly from themselves, or from other
suppliers, whom may be their competitors.
Also, the VOP manages and coordinates this
labor for the client.
MSP (Managed Service Provider)-
manages vendors and measure their
effectiveness for selection according to the
client's standards and requirements.
MSPs generally do not recruit directly,
but try to find the best suppliers of vendors
according to the client's requirements.
VMS – Vendor Management System Generally
refers to the software that’s in place that
facilitates the requisitioning and procurement
process of filling temporary staffing
requirements. A typical system tracks costs and
integrates pertinent data into existing financial
and human resources databases.

VMO – Vendor Management Organization. The

body of policies and procedures that surround
the VMS software. The VMO can be either
managed internally by the client or outsourced
to a third-party such as a Managed Services
Provider (MSP).
• Code of Conduct- A code of conduct is a set
of rules outlining the responsibilities of or
proper practices for an individual or
organization. Related concepts include
ethical codes .
• Agents- An agent is an individual or a small
company, which helps to facilitate outsourcing
deals but leaves the actual price negotiation to
the two parties.
• Organization Policy- The policy which
includes the norm of the organizations
regarding wages, working hours, working
conditions, labor unions and rights.
Contingent Workforce- A contingent workforce is
a provisional group of workers who work for an
organization on a non-permanent basis, also
known as freelancers, independent
professionals, temporary contract workers,
independent contractors or consultants.

Contingent Workforce Management (CWM) - It is

the strategic approach to managing an
organization's contingent workforce in a way that
it reduces the company's cost in the
management of contingent employees and
mitigates the company's risk in employing them.