| There are businesses that are mostly self-sustained. | | | | is a fast turnover rate. The danger in these |
| And then there are businesses that rely heavily on | | | | companies is that people leave too soon, without |
| third-party suppliers, otherwise known as vendors. | | | | getting the chance to endorse to the next person |
| For example, an events management business rely | | | | their "red book" of trusted vendors. As a result, the |
| on equipment suppliers, food and beverage suppliers, | | | | next person has to start from scratch to build up |
| chairs and tables suppliers, printers and fabricators to | | | | their own database of vendors. |
| be able to deliver a good, seamless and flawless | | | | This is where the importance of vendor management |
| event. | | | | software comes in. So what does vendor |
| While these types of business typically depend on a | | | | management software do? It actually serves as a |
| set of reliable suppliers that they regularly work with, | | | | robust database of all the vendors that the company |
| the best practice still involves exploring other suppliers | | | | has worked with in the past, as well as those that |
| every time a requirement comes up. Otherwise, | | | | they intend to work with in the future. |
| there won't be any chance of discovering better and | | | | Typical vendor management software has such |
| more cost-effective suppliers at all. | | | | functions as vendor registration, a vendor approval |
| For example, an events management company who | | | | scheme, risk management functionality, the ability to |
| has done business with the same audio-visual | | | | track vendor visibility and performance. All these are |
| equipment supplier for the past 10 years was bent | | | | usually linked to a standard billing and invoicing |
| on using the same supplier for a big event. One day, | | | | functionality as well. |
| however, a faxed flyer came in from a fairly new | | | | Does it sound like something that your business |
| equipment rental company which offered lower rates. | | | | needs? Remember though that there are certain |
| When asked for a quote, this new supplier gave | | | | things that you need to keep in mind when investing |
| rates that were half the cost that the old supplier | | | | in software. First, you have to make sure that the |
| offered. So automatically, the events management | | | | interface is user-friendly, the security features meet |
| company signed up a new equipment supplier. | | | | your standards, the report-generation functionality is |
| Unfortunately, keeping a database of vendors is a | | | | flexible and robust, and the after-sales support is |
| challenging task, especially in companies where there | | | | responsive. |