Date post: | 24-Jan-2015 |
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Lionshare Software, Inc.Lionshare Software, Inc.Managing Vendor RelationshipsManaging Vendor Relationships
1. Vendor Selection2. Negotiating3. Project Management4. Expectations / Priorities5. Value-added services6. Performance Management
Best Practices for Managing Vendor Relationships
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Vendor Selection CriteriaExperience with similar size projects and similar size companies
Experience with similar business types (market, channel, technology, etc
Stability – Financial health and employee stability
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Vendor Selection Criteria
Cultural fit – Personalities and work-styles
Collaborative tools
Well-defined project management methodology
Post implementation relationship with previous customers
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Can You Negotiate Too Hard?
•Value
•Expenses
•Human element
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Vendor OnBoarding
•Timing Expectations
•Vendor Orientation
•Team Building
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Project Management
Matched to your organizations level of competency
Managed through a single point of contact
Visible methodology
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Expectations / Priorities
Communicate expectations from Executive Sponsor through Core Team members
Integrate with your culture
Responsibility to Executive Sponsor, Steering Committee and Core Team
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Vendor Audits
Auditing Plan
Auditing Process
Areas to be Audited
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Value-Added Services
Use vendors experience to help build business case justifications as required.
Leverage Best Practices learned from experience with application at other companies
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Vendor Performance Mgmt
Timely
Metrics defined as part of selection / negotiation phase
Transparency
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Balanced Scorecard
Relationship
Cost Management
Quality
Delivery
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Balanced Scorecard
Relationship• Commitment• Flexibility• Innovation• Customer Satisfaction
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Balanced Scorecard
Cost Management• On-budget Delivery• Invoice Accuracy• Invoice Timeliness
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Balanced Scorecard
Quality• Expertise of Staff• Staff Turnover• Accuracy of Test Cases • Number of Defects
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Balanced Scorecard
Delivery• On-Time Completion• Responsiveness• Completeness
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Vendor Performance Metrics
Establish Vendor Management Responsibility
Establish the Performance Review Process
Maintain a record of all issues and resolutions
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
Common Vendor Metrics
Actual-to-Estimate Tracking
Issue-Resolution: • Time-to-close• Trending Open Issues
Estimate-To-Completion
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com
Best Practices for Managing Vendor Relationships
More Information
Scott Priestley Email: [email protected]: http://www.lionsharesoftware.comTwitter: LionshareERP
Phone: 888.741.0262
Lionshare Software, Inc. | ERP & CRM | 888.741.0262 | http://www.lionsharesoftware.com