Vendor Management

Course Overview

To meet increasing business and project demands, organizations often turn to outside vendors for help. To your internal and external stakeholders, vendors are an extension of the project team and must be managed well. The savvy project manager needs to be prepared to effectively manage all aspects of vendor relationships, from selecting the right vendor, to getting the right results.

This course focuses on the phases of vendor management. It covers key considerations and pitfalls to avoid at all stages of the process, with an emphasis on building solid ongoing relationships with selected vendors.  Developing a vendor management plan, identifying performance measurements, and understanding the impact of the various contract types are key aspects of this course.  Participants will analyze a master service agreement and work through case studies profiling vendor management issues.

Key Outcomes

By the end of this session, participants will be able to:

• Prepare for vendor participation in a project by developing a clear and thorough  Request for Proposal (RFP) or Statement of Work (SOW) document
• Identify critical components and types of contracts that will impact how the vendor will be managed
• Develop and implement appropriate escalation procedures for managing a vendor once the contract has been signed
• Develop and use appropriate measurements to evaluate a vendor’s performance throughout the contract or projects

Course Outline

Vendor Management Overview

• Discuss the importance of vendor management
• Identify important characteristics of a successful vendor management process
• Describe the importance of the RFP process
• Recognize the components of a procurement management plan

Pre-Award Phase

• Identify the difference between an RFP and an SOW
• Develop a request for proposal from a project scope statement
• Discuss management challenges associated with different types of contracts
• Identify important provisions to be covered in an SOW for effective vendor management

Award Phase

• Assess the risks associated with a vendor
• Define appropriate elements of a vendor management plan
• Develop a vendor management plan
• Identify appropriate measurements for a vendor’s performance that align with business or project needs

Administration of the Vendor  Relationship

• Measure and report on vendor performance
• Hold a kick off meeting with your vendor team
• Track and resolve vendor issues
• Close out the project with the vendor

Post-Award - Part II: Close-out and Document

• Describe the differences between a contract close-out and a contract termination
• Close out the project with the vendor