TriCore’s Approach in Managing & Improving Vendor Management

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Blog | Apr 19, 2016

TriCore’s Approach in Managing & Improving Vendor Management


A vendor management model is designed to manage third party suppliers thereby ensuring that a continuous, accurate, timely and quality services are being provided as per the agreed service levels for your Managed Applications & services.

Introduction:

In this blog we will highlight TriCore’s vendor management model and its features. Whether you're working with Oracle Manages Services, AWS, or the like; relying on vendors can be challenging both in terms of securing quality products and/or services as well as getting them at the right costs. With changing business environment the customers’ expectations are increasing towards service delivery. It is imperative to have an effective vendor management model in place to compete and succeed in the current business environment.

Keeping pace with the expectations and the need for a systematic approach, TriCore has developed a vendor management model to strengthen both processes and relationships. Let us elaborate a bit more.

Approach 1: The Procurement Sense: Very often when selecting a service provider (vendor) the end clients engage in an RFP/RFI process. Though RFPs/RFIs are extremely helpful in pre-qualifying those service providers. A key step in the process should be to meet with the right team members from the vendor’s side. More specifically, it is important for end clients to meet the team members who have the hands on knowledge to best guide about the offerings. It is recommended to have a face to face conversation to gain a better understanding. The selection should be based on service offerings, the people, availability and financials. It is recommended to perform vendor referral checks to conclude the selection process.

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Vendor Management Model

 

Approach 2: Vendor Assessment: Ensure that your vendors are at least meeting or exceeding your security, compliance & quality commitments. To ensure this you can follow a bi-annual Vendor assessment process. You can appoint Vendor Relationship Managers who closely monitor vendor performance on a checklist based matrix and rates them on the basis of the following:

  • Quality of the service delivery
  • Customer service
  • Financials
  • Business relationships

Approach 3: Vendor Coach: Any Vendor scoring <50% qualifies for Vendor Coach, i.e. you and the vendor identify resources to ensure that any learning and improvement opportunities are identified and suitably implemented. If the vendor is subsequently failing in the assessment scores, we trigger approach 1.

Approach 4: Continual Service Improvement: Creating value for business and for the customers is equally critical for the business existence. We have found that having this system in place ensures there is an ongoing dialogue with the vendors to improve service predictability.

It is worth sharing the following benefits accrued since the implementation of this vendor management model:

  • More visibility and better relationships: Since both parties need to work in collaboration, Vendor Model gives us clear visibility of service deliverables which has helped both parties earn each other’s trust and build stronger relationship.
  • Enhanced Vendor Performance: Vendor Model enables us to monitor their performance reports and develop reports through performance report card and development program card, thus helping them to improve on their pain areas.
  • Trusted Customer Relations
  • Making Compliance Stronger
  • Greater Efficiency 

Conclusion:

Cloud-based adoption is the next generation supplier management which is in increased demand now for more efficient collaboration. Cloud offers low cost alternatives, flexibility and scalable IT solutions. This shift increases the consideration for data security, accessibility, data integrity, availability.  

A vendor management model is designed to manage third party suppliers thereby ensuring that a continuous, accurate, timely and quality services are being provided as per the agreed service levels for your Managed Applications & services.

For more on TriCore's Compliance and Information Security Click here...

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Ask Prashant