8 steps to an efficient vendor management program at your company:
1. Creating and consolidating the list of vendors. Make a table with their names, addresses, names of your contacts over there and their emails.
2. Creating a list of services that you consider relevant to your organization. This list should include every service that the organization receives from third parties.
3. Finding relations between vendors and services. Assign suppliers from the vendor list to the services your company needs and find the links.
4. Verification of the requirements for creating Vendor Risk Profiles. Filtering criteria used in the profiles should be harmonized in the entire organization.
5. Creating a Vendor Risk Profile. This is not a one-time activity – it is a continuous process that should be repeated annually at least.
6. Checking the vendor compliance and risks self-assessment. All your vendors should be required to complete selfassessment. Enabling them to fill a risk assessment questionnaire template is a great idea.
7. Gaps and findings management. Evaluate your processes and establish a list of activities with responsible people assigned to them.
8. Risks Mitigation for identified findings (Probability/Impact matrix). Build it to determine which risks should be considered and respond to them accordingly.