Managing Vendors – Articles by Jim Everett

Tips on managing vendors, skills and competencies required

Who Controls Sourcing?

Posted on | October 6, 2008 | CLICK HERE TO COMMENT OR ASK QUESTION

In the extended enterprise, with emerging emphasis on governance and strategic sourcing, what is the role of HR and Purchasing? 

With greater emphasis and reliance being placed on external resources, and with many companies forging closer partnering relationships with vendors, the nature of the organization has changed.

At one time, HR hired employees, and Purchasing engaged vendors. Now, the distinction is not so clear. And the front line Delivery Managers feel the effects as they manage vendors. Executive oversight and greater planning is required for companies adopting extensive external sourcing.

Delivery Managers are a key indicator of how well a company structures its external sourcing. These are the employees in departments who have the day-to-day job of managing and integrating the work done by vendors and partners. If these Delivery Managers are struggling, or projects are going off track, then this is a symptom of a larger problem.

They may be facing projects where the agreements and metrics do not match the work to be done, and do not give the Delivery Manager the leverage they need in controlling the project and vendor. They may not have the contractual tools they need to manage and adapt to changing requirements. They may feel they have been thrown into the role, without the experience or training they need. 

Purchasing and Human Resources professionals can play a key role in selecting and integrating vendors to fit a situation, and become part of the extended enterprise. 

There is an extended article for online reading or download as a PDF on the Think180 site.



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Think180 helps companies get the best results with their service providers (vendors). Our core product is an in-house customizable workshop for Delivery Managers, or entire teams who outsource. This has been run successfully for many clients, including Palm, Philips, Harrah's, BP, Vantive, Avaya and others.

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