Saturday, November 30, 2013

Vendor Management Tips


This post is for technical operations folks managing vendor contracts. For technical people dealing with vendors and legal paperwork can be a bit complicated, and I hope that the information from the post will be very handy.

The vendor management process can be roughly outlined in the following steps (described in details later in this post):
  1. Research
  2. Price negotiations and service testing
  3. Contract negotiation
  4. Management of vendor contracts

In this article I’ll primarily concentrate on vendors demanding long term commitment (6+ months) on small and medium volume contracts (from $1000/month to $20,000/month), but some tips are also relevant to month-to-month agreements and large volume deals.