Vendor Management
Core ConceptsDefinition
The process of managing and optimizing supplier interactions and performance.
Detailed Description
Vendor Management in ERP systems involves the strategic approach to managing and optimizing the purchasing and supplier processes. It encompasses the activities of selecting suppliers, negotiating contracts, monitoring performance, ensuring compliance, and maintaining relationships to achieve cost-efficiency and high-quality performance. Effective vendor management helps organizations minimize risks and enhance supply chain operations by integrating supplier-related processes directly into the ERP system.
Key Features
- Compliance Tracking
- Contract Management
- Performance Monitoring
- Supplier Evaluation and Selection
- Supplier Relationship Management
Common Modules
Contract Management
Enables tracking, compliance, and adjudication processes of supplier contracts.
Procurement
Manages the acquisition of goods and services, including the creation and management of purchase orders.
Supplier Management
Focuses on maintaining supplier information and performance evaluations.
Popular Implementations
Oracle Procurement Cloud
A solution that offers extensive features for supplier management, from onboarding through performance evaluation.
Vendor Management Implementation in SAP
SAP ERP includes a comprehensive vendor management module that integrates sourcing, purchasing, and supplier evaluation.