Vendor Management: Why Integrated Views are Most Effective

Jan 29, 2023 | Best practices

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Jan 29, 20232 min read

Achieve integrated view of vendors through performance management, risk management, relationship management, and automation/technology. Automating vendor management with technology allows organizations to track vendor performance, risks, and relationship for better decision-making. An integrated view of vendors enables organizations to make informed decisions and improve overall performance.

An integrated view of vendors is essential for effective vendor management, as it allows organizations to have a comprehensive understanding of their vendors' performance, capabilities, and risks. This enables organizations to make more informed decisions, improve performance, and mitigate risks. There are several different approaches that organizations can take to achieve an integrated view of vendors: 

  • Vendor Performance Management: This involves regularly assessing vendors' performance based on factors such as quality, delivery, and cost. For example, a retail company implemented a vendor performance management program that involved regularly assessing supplier performance using key metrics. This enabled the company to identify areas for improvement and take action to address any issues that arose, which helped to improve overall performance. 
  • Vendor Risk Management: This involves assessing the risks associated with vendors and taking steps to mitigate those risks. For example, a financial services company implemented a vendor risk management program that involved assessing the financial stability of vendors, their ability to deliver goods and services on time, and the quality of their products or services. By identifying and mitigating any risks associated with vendors, the company was able to reduce the risk of disruptions to its operations and improve overall performance. 
  • Vendor Relationship Management: This involves developing and maintaining strong relationships with vendors. For example, a technology company implemented a vendor relationship management program that involved building strong relationships with vendors. By building strong relationships with vendors, the company was able to gain a better understanding of their capabilities, performance, and risks, which helped to improve overall performance. 
  • Automation and Technology: Automating the vendor management process using technology can help organizations to more effectively manage and track vendor performance, risks, and relationship. By using technology, organizations can gain an integrated view of vendors by having all the data and information in one central location, thus making it easily accessible and actionable. For example, a manufacturing company implemented a vendor management software that automates the process of tracking vendors, their performance, risks, and relationship. This allowed the company to have an integrated view of vendors and make better decisions. 

In conclusion, there are several different approaches that organizations can take to achieve an integrated view of vendors. 

FactWise is attuned to the need of integrated vendor views. The modular, extensible Source-to-Pay solution offers robust supplier management features for procurement teams to conduct RfX management with vendors very easily while also discovering new suppliers. Our key supplier performance insights enable buyers to make better fact-based decisions and work more closely with enhancing vendor performance, and the automation of low-value-add tasks enables teams to focus their efforts on more critical and meaningful strategic decisions. Suppliers love using the system as it is free of cost for them and automates invoice creation for their ease. FactWise is committed to transforming the procurement journey for buyers and suppliers globally. 

About the Author

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.


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