What is the difference between Vendor Management and Vendor Risk Management and Contract Management?

[Purushotham Ga2]

Hi Experts,

What is the difference between Vendor Management and Vendor Risk Management and Contract Management?

[Sohail Khilji]

Hi @Purushotham Ga2 ,

The word management say it all, 'management' simply means manager or control.

Let's say I own a company called 'glidenow' and I make use of external vendors ( vendor xipto: xipto ) to manage all my tax and audits !

So, here my vendor is - xipto:

Vendor management - currently my business has 1 vendor to manage my business I use a module called vendor management to manage it.

Vendor risk manager - There is always a risk associated when you work with vendor, so to manage this risk you use module called vendor risk management.

Contract management - to deal with my vendor I always create a contract to build ties and understand nature of work. To manage this we use contract management module.

I hope this helps...

[Dr Atul G- LNG]

Hi @Purushotham Ga2 

Vendor Management

Monitor the performance of your company's vendors and manage all vendor-related information using the ServiceNow® Vendor Management Workspace. Assess the performance of your vendors using key performance indicators (KPIs) that you can configure to create vendor metrics.

Track and analyze how your vendors are executing on their goals and which areas need attention from a unified, central location. Integrate data from Service Portfolio Management (SPM), Contract Management, Assets, SLA Contracts, Vendor Risk Management, and Continual Improvement Management (CIM) applications.

Vendor Risk Management

The Vendor Risk Management application provides a centralized process for managing your vendor portfolio, assessing vendor risk and tiering, and for completing the remediation life cycle.

Contract Management

Manage and track contracts with the ServiceNow® Contract Management application.

A contract is a binding agreement between two parties. In the ServiceNow platform, contracts contain detailed information such as the following:

• Contract number
• Contract start and end dates
• Active status
• Terms and conditions statements
• Documents
• Renewal information
• Financial terms

Contract Management is active by default. If the Cost Management plugin is activated, the Contract Management application integrates with the Cost Management plugin to associate contracts with costs and determine the total cost of ownership. You can track recurring expenses with expense lines. An administrator can activate the Cost Management plugin.

If you are using the Software Asset Management plugin, use the Software Licenses option.

[Anurag Tripathi]

These are all quite different things, I'd suggest you find these on SN docs and read about the,

They are big tops to be summarized here.

[Anand Kumar P · Accepted solution]

Hi @Purushotham Ga2 ,

Vendor Management:

Vendor Management helps organizations control costs, improve services, and reduce risks while dealing with vendors.
It involves tasks like finding vendors, getting quotes, negotiating contracts, managing relationships, evaluating performance, and handling payments.

Vendor Risk Management:

Vendor Risk Management ensures that using service providers or IT suppliers doesn’t disrupt business or harm performance.
It includes identifying, assessing, and reducing risks linked with vendors, like data breaches, legal compliance, and financial stability.

Contract Management:

Contract Management oversees creating, executing, and analyzing contracts to boost organizational performance and minimize financial risks.
 It covers drafting contracts, negotiating terms, ensuring compliance, documenting changes, and making sure both parties follow the contract.

Mark it as helpful and solution proposed if it serves your purpose.
Thanks,
Anand