Improper vendor management leads to duplication of accountabilities and capability gaps and overlaps, which can result in increased costs and missed business opportunities.
Organizations should clearly define sourcing, procurement and vendor management (SP&VM) roles as well as shared objectives. In doing so they unlock efficiencies and maximize the contribution of their organizations vendors.
It happens all of the time. Clients that audit their own billing and manage their own contracts spend wasted hours trying to sort out the fees and promo plans service providers offer. In the end (months later) they realize how much time and energy they spent trying to sort out the very complicated terms, renewals and plans that should have been crystal clear from the beginning. No customer should have to feel they are “in charge” or have to be “on the watch” for changes in their contracts and agreements especially those “1 year promos”. Shouldn’t the service provider INFORM their customer more clearly of any changes going into effect, clearly state them and offer cost saving OPTIONS? Well that is NEVER going to happen!