In india vendor management is little new concept as compared to US or somewhere else abroad. In india vendor management concept is tied into Procurement solutions being implemented by government organizations. SME sector has no defined supplier relationship or vendor management solution in place. Probably companies still dont understand importance of having vendor management solutions in place.
Why do we need seperate vendor management solutions other than Procurement ?
With Vendor Management solutions organizations can bring in Business Intelligence and Decision making metrics in place based on previous dealing etc.
3 metric inputs can be pre-determined based on existing data available with any organization
Warehouse and Inventory management – Time to deliver product from order. product consumption
Financials – Pricing compared to other vendors/previous procurements/ future demand estimation vs cost estimation
Procurement – vendor location, past experience, product quality/certification, RFP related metrics
With retail india dependent on large supplier base for fulfilment of requirements vendor management will become a solution seperate from procurement.
Current verticals in need of vendor management solutions : Finance, Government, Textile.
With travel portals vendor management solutions can be implemented for negotiating better comission structure based on volumes achieved and other co-branding activities.
If an organization can achieve 7-9% reduction in procurement cost then money invested in vendor management solution generally pays off.
Cyberica’s own vendor management solution is in the workz soon we will beta and make available the link for customers to test.