vendor management checklist

Identify and define the specific vendor requirements

Conduct market research and identify potential vendors

Develop a request for proposal (RFP) or request for quotation (RFQ)

Evaluate vendor proposals and shortlist potential vendors

Conduct due diligence on shortlisted vendors

Evaluate vendor capabilities, financial stability, and reputation

Obtain and review references from other clients

Develop a comprehensive contract that includes all necessary terms and conditions

Define specific deliverables, timelines, and performance metrics

Negotiate pricing, payment terms, and any other relevant contract terms

Review contract with legal and procurement teams

Obtain necessary approvals and signatures

Ensure compliance with organizational policies and procedures

Define key performance indicators (KPIs) to measure vendor performance

Establish a process for ongoing monitoring of vendor performance

Regularly review vendor performance against established KPIs

Conduct periodic vendor performance reviews or meetings

Address any performance issues or concerns in a timely manner

Document and track vendor performance metrics and outcomes

Assign a dedicated vendor relationship manager

Establish regular communication channels with the vendor

Foster a positive and collaborative relationship with the vendor

Regularly communicate expectations and goals to the vendor

Address any concerns or disputes promptly and professionally

Continuously seek opportunities for improvement and innovation

Identify and assess potential risks associated with the vendor relationship

Develop a risk management plan to mitigate identified risks

Regularly review and update the risk management plan

Conduct periodic vendor risk assessments or audits

Ensure compliance with regulatory and legal requirements

Develop contingency plans for vendor-related disruptions or failures

Develop a vendor exit strategy or termination plan

Clearly define the process and requirements for terminating the vendor relationship

Evaluate and document any outstanding obligations or liabilities

Establish a transition plan for transferring to a new vendor or bringing services in-house

Communicate the exit strategy and transition plan to all relevant stakeholders

Conduct a post-termination review to identify lessons learned and areas for improvement