quantivate: ten tips to improve vendor management program

10 Ways to Improve Your Vendor Management Program

Presented by Andy Vanderhoff

Quantivate

1. The Evolving Role of the Vendor Manager

• Legal Clerk• Contract Negotiator• Paperwork Administrator

• Senior Leader• Strategic Thinker• Business Development

2. The Argument for a Senior Level Vendor Manager• Ask yourself could your institution survive

without vendors?• Who controls more interactions with your

members– your employees? – your vendors?

• What scares you more– a disaster at one of your branches– a disaster at your outsourced (fill in the blank)?

3. Understand Vendor’s Market Position

Gartner’s 2012 Hype Cycle

4. Understand Your Market Position• Resource: Your strategic plan

5. Change the Performance Scale

• Keep vs. Fire• A vs. F

Strategic Business Partner vs.

Just Another Check Casher

6. Connect

• Connect with key sales people on LinkedIn to gain an inside scoop on the industry

7. Use the Right ROI

• Types of ROIs– Efficiency:

• Savings from Reduced Hours – Cost = ROI

– Growth:• Additional Revenue – Cost = ROI

– Good-Will: • Additional Members or Lower Churn Rate *

Average Rev Per Customer – Cost = ROI

Use the Right ROI

• Types of ROIs (con’t)– Risk Mitigation/Avoidance:

• Cost of Potential Event / Probability – Cost = ROI

– Compliance:• (just do it)

8. Tie Original Business Plan (ROI calculation) to the Vendor Performance Review Cycle

9. Choose the Right Implementation Model

• Distributed– Every manager performing VM on the

vendors they own

• Centralized– One group performing VM tasks for all

vendors

10. VM as a Strategic Key Performance Indicator (KPI)• Health of your vendor eco-system should

measure:– Performance metrics– Financial

Questions

Thank you!Andy Vanderhoff, CEO

andy.vanderhoff@quantivate.com

Quantivate is the NAFCU Services Preferred Partner for Vendor and Contract Management.

Learn more at www.nafcu.org/quantivate.