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Effective Vendor Performance Management

Within today’s competitive market, the ability to source suppliers effectively to reduce cost is now only the start of the process. Increasingly focus is being placed upon both realizing these savings in subsequent years and enhancing quality and delivery via effective vendor performance management. This course leads delegates through the total end to end vendor management process: from sourcing through to creating effective vendor performance measurement and management frameworks, including contracts and Service Level Agreements. This course will help you to identify and leverage strategic partnering plus continuous improvement opportunities to ensure the effective contribution of the vendor base to organizational goals

Turning 'Theory' into 'Practice'?

This 2-day VPM training program will provide strategies that make a difference in daily business. Delegates will understand their own operation against current best practice. Using supporting documentation and case study’s this course highlights critical areas and provides solutions to manage them. The course attendees will acquire comprehensive methods that manage vendor risks to protect your contracts and profit margins. Our expert authority on contract management will provide a practical explanation of the Contract design, Service level agreement, Integrating VPM into sourcing decisions and when to use SRM/CRM. This two day intensive course provides delegates with the necessary skills, tools and templates to enable them to swiftly and confidently implement their learning upon their return to the workplace.

Who should attend?

This course is suitable for procurement practitioners, quality assurance and supply chain professionals who have a direct responsibility for procurement and or supply chain and supplier relationship management, or delegates from a supplier, marketing and governance perspective, such as key account managers, bid management teams or commercial management who are seeking to develop improved understanding of how supplier performance is measured and managed.

Key areas to be covered in the programme and documentation

The Key Principles of Effective Vendor Performance Management
Here we examine the key principles of Vendor Performance management & Vendor Relationship management throughout the procurement cycle
• Aligning procurement and supplier management with organizational goals
• Development of vendor management activities – Sourcing/Evaluation, Pre- Contract award stages
• The use of E-Procurement in sourcing and vendor management – how to implement, manage and develop vendor management within the e-procurement environment
• Effective use of data within vendor management
Practical exercise: “Penalties & Own Goals” – Creating the right balance
Case study review, analysis & critique:  The Gartner report

Practical Vendor Management – Sourcing & Selection Stages
In our second session, we explore the key elements and tools that can be employed at the sourcing and selection stage to support effective vendor management
• Defining strategic and tactical spend categories and why this is important
• The 3C’s of Sourcing & Selection
• Single source v multiple source – practical choices and impacts
• New supplier sourcing funnel- managing potential new suppliers & preferred supply listings.
• Pre tender preparation
• Developing a post tender vendor management strategy before we get there
• Tender project management – the 5 phases of tender management
• Effective supplier evaluation including scoring systems, weighting and evaluation process
• Supplier auditing & global quality and environmental standards compliance
Case Study review, analysis & critique:  “Engineering Success”
Practical exercise: Creating sourcing strategies to optimize vendor contribution

Practical Vendor Management – Contract Award Stage
Here we explore the key legal aspects of vendor management and examine the key techniques we can employ when developing the contractual framework for vendor performance management
• Principles of international law – overview of key legal principles when creating contracts
• Constructing effective contracts
• Excusable and non excusable delays
• So what about vendor sub contractors?
• Developing effective supplier service level agreements
• Constructively debriefing unsuccessful vendors
• Vendor implementation planning and overcoming challenges
• Creating effective data sharing processes to support vendor performance
Case Study review, analysis and critique: LD’s, PD’s & LADS
Practical exercise: Creating SMART Contracts & Service Level Agreements (SLA)

Continuous Improvement Opportunities
In our final session of the programme, we examine tools and techniques for further development and enhancement of the vendor relationship
• Establishing baselines for quality, cost & delivery (QCD)
• Developing supplier scales of engagement – defining strategic partner opportunities
• Developing regional supplier capacity building
• Creating supplier development milestones
• Effective reporting to internal stakeholders
• Supplier relationship & performance management – creating additional value whilst reducing cost
Case Study analysis includes: The Cox Model
Practical exercises: “Bringing everything together” – Business simulation covering communication, management and development of vendor performance structures

Benefits to you

• Creating effective vendor performance frameworks
• Integrating vendor performance management throughout the procurement cycle
• Developing understanding of key legal principles within vendor management
• Reviewing and implementing changes to better protect your organisation in vendor performance management
• Identifying and managing key risks (product, price, people, place or procurement)
• Reducing risks in supplier contracting and outsourcing
• Acquiring comprehensive methods that manage vendor risks to protect your contracts and profit margins
• Improving vendor negotiation and management skills that adds tangible value and results
• Identifying strategic partnering and continuous improvement opportunities

Companies already benefiting include:

Duration of Course

2 Day Course

Course details

This course is currently only available as an in-house option. For more information, and a quote, contact our team on +44 (0)20 3002 3057, or by email at

Looking to train larger teams in this subject?

dzingim@marcusevansuk.comTailored in-house/in-company training courses and bespoke strategy workshops designed and delivered on-site throughout Europe according to your specific requirements.

All management, personal development and project management public courses featured in our Course Directory are also delivered on an In-Company basis.

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Further information

UK Enquiries: +44 (0) 203 002 3057

Non-UK Enquiries: +420 (0)2 5570 7246

North American Enquiries: +1 312 540 3000 X6714 or - Marketing Manager EMEA - Professional Training

UK Enquiries: +44 (0)20 7647 2383 :
European Enquiries: +420 (0)2 5570 7246 :


"This course will allow my company to develop its existing strategies to a much greater and hopefully profitable level."

Managing Director, Tarmac