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    Vendor

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    Purohit Sagar
    Vendor management involves establishing goals for third-party suppliers, selecting vendors that can meet those goals, and managing vendors to ensure consistent performance. Key aspects of vendor management include defining goals for things like quality, cost and satisfaction; selecting vendors with the right capabilities; monitoring vendor performance on a daily basis through feedback, projects, and change control; and ensuring vendors consistently meet established goals. Maintaining good relationships with dedicated, long-term vendors is also important for organizations. Vendor selection considers a supplier's production capabilities, financial stability, technical skills, and other factors like workplace conditions and the potential for disruptions.

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    Vendor

    Uploaded by

    Purohit Sagar
    50 views3 pages
    Vendor management involves establishing goals for third-party suppliers, selecting vendors that can meet those goals, and managing vendors to ensure consistent performance. Key aspects of vendor management include defining goals for things like quality, cost and satisfaction; selecting vendors with the right capabilities; monitoring vendor performance on a daily basis through feedback, projects, and change control; and ensuring vendors consistently meet established goals. Maintaining good relationships with dedicated, long-term vendors is also important for organizations. Vendor selection considers a supplier's production capabilities, financial stability, technical skills, and other factors like workplace conditions and the potential for disruptions.

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    Vendor management involves establishing goals for third-party suppliers, selecting vendors that can meet those goals, and managing vendors to ensure consistent performance. Key aspects of vendor management include defining goals for things like quality, cost and satisfaction; selecting vendors with the right capabilities; monitoring vendor performance on a daily basis through feedback, projects, and change control; and ensuring vendors consistently meet established goals. Maintaining good relationships with dedicated, long-term vendors is also important for organizations. Vendor selection considers a supplier's production capabilities, financial stability, technical skills, and other factors like workplace conditions and the potential for disruptions.

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    50 views3 pages

    Vendor

    Uploaded by

    Purohit Sagar
    Vendor management involves establishing goals for third-party suppliers, selecting vendors that can meet those goals, and managing vendors to ensure consistent performance. Key aspects of vendor management include defining goals for things like quality, cost and satisfaction; selecting vendors with the right capabilities; monitoring vendor performance on a daily basis through feedback, projects, and change control; and ensuring vendors consistently meet established goals. Maintaining good relationships with dedicated, long-term vendors is also important for organizations. Vendor selection considers a supplier's production capabilities, financial stability, technical skills, and other factors like workplace conditions and the potential for disruptions.

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    Vendor Management is the management and control, by an entity, of those third parties that supply goods

    and/ or services to that entity. It is the discipline of establishing service, quality, cost, and satisfaction
    goals and selecting and managing third party companies to consistently meet these goals:-
     Establishing Goals- Just as employees need clearly established goals, operations need clearly
    defined performance parameters.  When selecting or managing vendors, vendor managers must
    optimize their opportunity to achieve these goals by using third parties companies.
     Selecting Vendors- The fine art of vendor management is essential to optimizing operational
    results.  Different vendors have different strengths and weaknesses, and it is the vendor manager’s
    responsibility to match the right company with the desired performance characteristics.  Failure to
    consider this comprehensively could lead to complete failure.
     Managing Vendors- On a daily basis, vendor managers must monitor performance, provide
    feedback, champion new projects, define or approve/disapprove change control processes, and develop
    vendors.  There’s a tremendous amount of detail to this aspect of the discipline, and we’ve covered this
    in many posts here.
     Consistently Meet Goals- Operations must perform within statistically acceptable upper and
    lower control bounds.  Everything the vendor manager does should focus on meeting goals, from
    providing forecasts to defining requirements, from ensuring vendors have adequate staff to ensuring the
    staff have completed all required training.
    Vendor Relations
    An important objective in purchase management is that of maintaining good relations with vendors. A
    good vendor is an asset of the company; and, therefore, just as customer goodwill is considered
    important, a good relationship with the vendor should be treated likewise. A vendor who supplies the
    proper quality material in proper amounts in proper time is not very easy to find. Moreover, there are
    many situations where materials are required in hurry. There are situations where materials are in
    shortage in the supply market. In all such situations, good relationships with the vendors pay dividends.
    This may entail: personal relationship, professional relationship:-
     By helping the vendor in times of stress and strain with financial aid, by providing management
    skills if necessary, and,
     Maintaining a healthy professional relationship by fair negotiation, fair evaluation and fair
    compensation.
    The modern management theory and world class manufacturing call for a long-term, almost a lifetime,
    association with the vendors. This also means that there will be fewer vendors but these will be dedicated
    vendors- almost a part of organizational family.
    Until the present and even now, the Indian industry has not given/is not giving much importance to vendor
    relations. The emphasis, if any, has been on vendor selection and on monitoring the performance of the
    vendor through a vendor rating system. Vendor is the entity that is, generally, taken for granted. This
    attitude is: All said and done, the vendors for the company may change over a period of time. They may
    change to another business; some of them may not give the desired performance in quality, delivery and
    price, and therefore, one should always expect a drop-out rate in the vendors list of the company.
    Selection of Vendors
    1. The production capabilities of the vendor
    (a)    Capacity to manufacture the required product in desired quantities.
    (b)   Possibility of future expansion in capacity.
    (c)    The understanding or the knowledge of the vendor regarding the buying company and its need.
    2. The financial soundness of the company
    (a)    The vendor company’s capital structure.
    (b)   Whether it belongs to a larger group of companies; whether it is a Private Limited or a Public Limited
    company.
    (c)    The profitability record of the company in the past.
    (d)   Expansion plans of the company in the future.
    3. Technical capabilities
    (a)    Whether the available machines are capable of the required quality of materials? What are the future
    plans of the vendor?
    (b)   Whether there are enough technical skills available with the vendor?
    (c)    Whether there is proper research, design and development facility available with the vendor?
    (d)   What is the record of the vendor in filling the orders of other buying companies in the same
    business?
    (e)    What has been the consistency in the quality produced by the vendor?
    (f)    Whether the vendor has appropriate storage and warehouse facilities to retain the quality of the
    product produced?
    (g)   Whether proper quality control procedures are being followed in the vendor company?
    4. Other considerations
    (a)    What are the working conditions in the vendor company?
    (b)   How are the industrial relations in the vendor company?
    (c)    Whether there is any possibility of disruption of the supply of materials in terms of quantity and/or
    quality due to human relations problem in the vendor company?
    +++

    ++++++++
    Target segment = Retailer and Consumer
    Simple size = 100
    Consumer = 2, 00,100
    Retailer = 150
    Sampling = Probability Sampling
    Instrument of Survey = Questionnaire
    Method = Personal Interaction
    This project is related to “Marketing Amul.” The Methodology is being developed after understanding the needs and
    requirements of the company.
    - The purpose of the Report is to inform the company about the resent changes in consumer buying behavior.
    - An Understanding being trying to develop about the competitor strategies.
    - It is effect on the Retailers.
    To fulfilling these tests a Consumer Survey, Retailer Survey and competitor Companies Market Share and Policies
    is trying Reviewed in this Report.
    This Report is being created keeping in mind that it will be beneficial for the company in adding more customers in
    the future.

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