In recent years, vendor management has become an increasingly high priority. Businesses face growing pressure to oversee complex multi-vendor sourcing models and ensure collaboration and co-ordination between a myriad of providers.
Many large global businesses struggle to assess their vendor management capabilities and lack a clear sense of where they stand relative to their industry peers. Transparency into the service delivery model to identify potential compliance and security risks is especially important in heavily regulated industries, such as financial services.
To assist organizations seeking to enhance their vendor management capabilities, Alsbridge, a global sourcing, benchmarking and transformation advisory firm, has designed a free self-assessment tool to enable enterprise clients to evaluate their vendor management and governance maturity levels. The new easy-to-use tool provides a starting point to allow vendor management teams to identify areas of strength, expose gaps and chart an improvement plan.
“Although interest is growing, vendor management remains a relatively immature field,” said David England, an Alsbridge Director who designed the offering. “Until recently, few enterprises had a dedicated resource. Today, vendor management capabilities continue to vary widely. By providing insight into existing performance, the assessment is designed to help enterprises benchmark their capabilities against industry standards.”
The assessment tool comprises six vendor management categories: Contract, Financial, Performance, Relationship, Risk and General Strategy. Each category contains a set of criteria or questions that an assessor ranks using a sliding scale of 1 to 5, ranging from non-existent to moving toward best practices. A total of 80 criteria are included in the assessment.
The new tool will help clients address the critical challenges they face in enhancing their vendor management, governance and compliance capabilities.