More and more completed market economy has been established in this modern society and vendor or supplier and organization's relationship has become more and more important. In this environment, the process of acquiring software and implementing that software to meet the organization's needs is a very important area. To get a balance between vendor and organization, Vendor Management has disappeared in the ICT field. In this research essay, four points will be put forward to explain why this knowledge can play an important role within an organization. They are definition of Vendor Management and concept in different sizes organizations, adaptation of this management to all sizes of organization, best practices of Vendor Management and different features of best practices in organizations of different sizes. A formal vendor management program is a beneficial undertaking because it can bring substantial economic benefits and promote vendor relationships. (ICG consulting 2013)
Vendor Management is a term that describes the process of finding, qualifying and doing business with vendors.
These processes include researching vendor, selecting proper vendor, developing potential vendor and controlling vendor. (wiseGEEK, 2013) Those processes show some management functions and establish a reliable and stable vendor's term to provide long-term resources to an organization. It can allow an organization to manage and get vendor profiles based on organization's needs, recruitment, on-boarding, tracking, scoring and all delivery process. This management is a complex process and often involves a lot of electronic or manual paperwork. A database is an essential step that needs collection of vendor contact information, certificates of insurance, and taxpayer identification numbers. This process includes large information and some organizations require vendor files to be updated annually so a manager is necessary. (ICG consulting 2013)
In a small organization, limited resources and incomplete knowledge always prevent...