A supplier manager is responsible for finding and managing suppliers, negotiating contracts, conducting financial analysis, managing relationships, and leading a team. They must be strategic, knowledgeable about the industry, and able to make decisions that benefit both parties.
A sales manager is an intermediary who provides a communication channel between a company and its suppliers. Most vendor managers work on a contract basis for various companies, but some are employed on a permanent basis with only one company. A supplier manager manages contracts, conducts financial analysis, manages relationships, plans and leads a team.
The first activity of the supplier manager is to find suppliers and establish a contract. This requires thorough research of potential vendors to determine which ones best fit the company’s goals. After locating a suitable supplier, the manager must then work with the supplier to establish a fair statement of works that clearly defines the relationship between the business and the supplier. The manager must also negotiate a contract that meets the needs of both the company and the vendor.
Performing financial analysis that compares the benefits and downsides of a particular vendor relationship is another vendor manager job. This requires measuring quantities such as delivery times, customer satisfaction and profits achieved. It is important for a manager to be aware of the potential repercussions that could result from a wrong decision and the best way to be aware is to keep tabs on all available data.
Another important role of a supplier manager is relationship management. A manager must use an intelligent strategy that makes both parties happy. This may require entering into negotiations, forcing a particular party to make concessions, or assuring one or both parties that everything is okay. The best vendor managers typically have previous sales experience.
A successful supplier manager must also be able to think in broader terms. Every single transaction that occurs between a business and a supplier must have a strategically planned outcome that is beneficial to both parties. Getting the required product isn’t enough, and there are many other factors to consider, including price, whether the price will change, and whether there will be enough inventory.
Vendor management also requires leading a team. A typical supplier vendor has several subordinates who need to be assigned different tasks. Some will focus on ensuring strict quality guidelines, while others will be responsible for measuring services. Although the manager is the one who has to make the final decision, he must be able to ensure that subordinates have the necessary education and competence to complete their tasks.
Vendor management requires you to be a sales associate, analyst, strategist, and even a leader. Vendor managers should be well versed in the details of the business. They should also be experts in the industry they work in, whether it’s medical supplies, electronics, or food.
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