Supplier Management describes the activities included in researching and sourcing providers, obtaining quotes with pricing, capabilities, turnaround times, quality of work, negotiating contracts, managing relationships, assigning jobs, evaluating performance, and continually monitoring legal and regulatory risk. It requires a lot of skills, resources and time.
Though many business leaders believe that vendor management is simply about finding the supplier with the cheapest price for a product or service, it's about more than that. It's about streamlining the process for heightened efficiencies and managing supplier relationships to ensure that the agreements made are mutually beneficial for both parties whilst meeting legal and regulatory obligations.
Insurance businesses are increasingly aware of the regulatory and reputational risks to which a supplier, partner or other third party can expose them.