HRMS: Why a Better Vendor Management System is Key to Higher ROI
Working as an employee benefits, HRMS, or HRIS (Human Resources Management/Information Systems) consultant means your time is scarce. Between copious client emails, and making sure you're billing enough, "managing" vendors can easily become an afterthought.
But it's worth investing in, because clients needing benefits administration systems translates to one thing: lots of RFPs (Request for Proposals) to be issued. It means your primary responsibility is searching for, and choosing, the best-fit solution for your customers.
And while we may not prioritize vendor management, the reality is these Responders aren't just our meal ticket, they're our partners.
And If we want to serve our clients well, we need to begin by building relationship with those partners.
Your Ticket to Customer Satisfaction
The tried and true adage is that finding a customer is much more work than maintaining a customer. The same goes with vendors. Finding and vetting the right companies and suppliers is a lot of work. That's why it's crucial that when we do find the right ones, we make them to want to work with us again.
Procurement leaders put out a fantastic article on 3 Reasons To Invest In Enabling Your Suppliers, arguing that in order to be strategic you need insight, you need to get know your vendors, and you need to know who you're spending your money on.
Rightly stated "...a disconnected supplier is an inefficient supplier," and bottom line, it's our job to empower those suppliers to deliver.
Building relationships with vendors and managing them well, is the secret key to higher return on our investment (ROI).
Because the less time you spend searching for new perfect partners, the more time you can spend focusing on your clients.
Better vendor management ultimately means better client service.
What Does a Better Vendor Management System Look Like?
It might be a literal "system," like vendor management software that makes it easy to keep profiles updated, or an RFP platform that simplifies the process (not only for you, but also for your Respondents). But bigger picture, better vendor management begins with an investment mentality: making it "work for them."
Being self-centered ultimately backfires. Vendors know when they're being taken advantage of and will react negatively to narcissistic negotiation: "There is no doubt that aggressive procurement practices are getting short term wins."
Trust correlates to profit.
We measure success, earnings, and investment return on an endgame scale (quarterly, annually, etc.), because we know that thinking short term would be shortsighted.
Vendor management is no different, and if vendors are our partners, then we need to be in it for the long haul, and invest in them accordingly.
Ready to make RFPs easier for both you and your vendors?