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This presentation will provide 6 steps for effectively managing vendor relationships. Although positioned for the customer, this information is vital for professional services firms as well. Listening to our clients’ pain points is the best way to add value and step away from the pack. Whether the product is ERP, CRM, BI or even something like HR services, the needs are similar and these steps will lead to success. This presentation will cover Vendor Selection, Negotiating, Project Management, Setting expectations and priorities, Value-added services and Performance Management. By the end of this presentation you should gain some valuable insight on methods for evaluating and selecting a professional services vendor.
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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
