Depending on its specific industry, focus, and customer base, a modern organization may work with potentially hundreds of vendors across a diverse range of markets. Each of these vendors must be approached as a unique entity, carrying with it its own pay rates, contract terms, and points of contact. As such, managing these vendor relationships can be an extremely complex task.
Vendor management organizes these relationships, providing companies with tools and other resources for selecting and working with vendors to meet unique business needs. And while vendor management is clearly focused on improving vendor selection and ensuring supply chain consistency and reliability, when properly utilized it can lead to many other advantages as well.