Vendor Management Best Practices

[Sean Hamilton1]

Hello,

I'm wondering if anyone could share their experience with Vendor and / or Contract management, which we have just begun using.  Anything at all, did you use Parent Child relationships, where did your vendor mangers attach their documents (MSA's SOW's, Contracts, etc.)  Any thoughts at all.  I'm happy to reciprocate and share our experiences as we continue on our journey.  We (I) are not new to ServiceNow at all, just this App / Module.  Thank You.

Sean

[chrisperry]

Hi there,

I recently achieved Certified Implementation Specialist - Vendor Risk Management, so I can share a few thoughts regarding best practices.

As far as Parent / Child relationships, those can be very useful because the Vendor Risk Management app will consider Child Vendor Risk Ratings when determining Parent Vendor Risk Ratings.

Regarding any and all document requests, assessment requests, and communication with Vendor Managers, the answer is Vendor Assessment Portal. This is arguably the most important part of the entire Vendor Risk Management application because it enables all of the above in a centralized, secure location on the Now platform. It's kind of funny how many questions on the CIS exam were: "What's the best way to manage xyz process with your vendors?" and the answer was literally always Vendor Assessment Portal, so definitely become familiar with this solution.

Relevant docs:

Vendor Assessment Portal

Tools for learning the Vendor Assement Portal

Set up the Vendor Assessment Portal

If this answer is helpful please mark correct and helpful!

Regards,

Christopher Perry

[NagarajG2051932]

Hi Sean,

When it comes to Vendor and Contract Management, there are several best practices you can follow to ensure smooth operations. Here are a few key strategies:

1. Parent-Child Relationships: Using Parent-Child relationships can be highly effective for managing contracts and vendors, especially when dealing with multiple sub-contracts under a master agreement. This structure allows for better tracking of obligations and deliverables.
2. Document Management: Typically, vendor managers attach documents such as MSAs, SOWs, and contracts within a centralized repository or a vendor management portal. This ensures that all documents are easily accessible and can be retrieved quickly during audits or reviews.
3. Vendor Performance Tracking: Regularly track vendor performance using KPIs related to contract compliance, service quality, and timeliness. Having a dedicated tool for this, Vendor Performance module, can help streamline this process.
4. Automation: Automating repetitive tasks such as contract renewals, vendor onboarding, and performance reviews can significantly save time and reduce errors.

You may also find Vendor Management Best Practices Blog helpful as you explore further in your journey.

Feel free to reach out if you have any other questions or need further assistance!

[Saiganeshraja]

Using the Terms and condition section of the contract form ( ast_contract) capture MSA, SOW, etc..,

Mark correct and helpful.