eVRM (Vendor Relationship Management)

Bulwark Systems eVRM provides visibility into the extended workforce, allowing organizations to better manage spend, compliance, risk, and efficiency. Bulwark Systems provides solutions that address your total workforce to ensure alignment, assessment, measurement, and productivity across the enterprise. eVendor Reliationship Management (eVRM) has become an integral part of the IT organisation. It is becoming more important than ever for clients to consider how they extract maximum value from outsourcing arrangement, particularly in the context of multi-sourcing environments. Outsourcing provides opportunities to leverage external expertise and scale to provide quality services at reduced cost enabling internal resources to be more focused on organisation specific activities, appropriate to their knowledge and skill. However,without effective eVendor Relationship Management, organisations are at risk of services not delivering what the business requires and at a premium cost to the business.

Aims & Objectives

eVendor Relationship Management is the discipline of managing vendors to extract maximum possible value from a contractual arrangement through governance and relationship building. The proactive management of ongoing commercial relationships ensures that any technical or contractual loopholes are closed and that commercial conversations are escalated to the appropriate level to ensure prompt resolution of issues.

Scope of eVRM activities

The objectives of vendor relationship management is to develop contract and commercial tools, models, systems and processes to manage vendors and to ensure the proper investment into the relationship happens.

eVRM Principles

VRM development work is based on the belief that free customers are more valuable than captive ones — to themselves, to vendors, and to the larger economy. To be free —

  Customers must enter relationships with vendors as independent actors.

  Customers must be the points of integration for their own data.

  Customers must have control of data they generate and gather. This means they must be able to share data selectively and voluntarily.

  Customers must be able to assert their own terms of engagement.

  Customers must be free to express their demands and intentions outside of any one company's control.

Our eVRM Goals

Provide tools for individuals to manage relationships with org.

These tools are personal. That is, they belong to the individual in the sense that they are under the individual's control. They can also be social, in the sense that they can connect with others and support group formation and action. But they need to be personal first.

Make individuals the collection centers for their own data

so that transaction histories, health records, membership details, service contracts, and other forms of personal data are no longer scattered throughout a forest of silos.

Give individuals the ability to share data selectively

without disclosing more personal information than the individual allows.

Give individuals the ability to control how their data is used by others

and for how long. At the individual's discretion, this may include agreements requiring others to delete the individual's data when the relationship ends.

Give individuals the ability to assert their own terms of service

reducing or eliminating the need for organization-written terms of service that nobody reads and everybody has to "accept" anyway.

Give individuals means for expressing demand in the open market

outside any organizational silo, without disclosing any unnecessary personal information.

Make individuals platforms for business

by opening the market to many kinds of third party services that serve buyers as well as sellers

Base relationship-managing tools on open standards and open APIs

This will support a rising tide of activity that will lift an infinite variety of business boats plus other social goods.

HOW DOES WE MAKE THE TRANSITION TO
EFFECTIVE VENDOR MANAGEMENT?

Create an internal vendor management practice

Effective vendor management requires the combination of two sets of activities that are increasingly performed by two different practices: procurement and vendor management. Both practices play a critical role in managing vendors and ensuring the long-term health of key vendor relationships. While procurement manages sourcing and selecting the most appropriate vendors, vendor management generates additional value from those vendors through active analysis and management of vendor performance. This also allows the organisation to plan against any vendor related performance issues or risks.

Develop a clear vision for vendor management

A successful vendor management program is designed with a clear vision and an understanding of its desired culture. These should be based on the broader organisational vision and culture, thereby ensuring the vendor management function is supporting business strategy. The vision and cultural aspirations drive other elements such as organisation, people, support systems, and most importantly, its policies and procedures.

Build strong relationship with the rest of the organisation

In addition, successful vendor management is highly dependent on close collaboration with the rest of the organisation. When vendor management bases its vision on the corporate vision, it shares strategic objectives and understanding of business requirements with the rest of the business, and can therefore have deep relationships based on these. In return, the business will better understand vendor management’s objectives and potential benefits for them. The example below provides an insight on how a global Networking Solution Provider successfully improved their strategic vendor management.