You probably already know that vendors can provide just about any kind of good or service to your company. A vendor can come from any business vertical; credit unions, banks, contractor, creative, manufacturer, or anyone else who fills a need that you and your employees don’t create or provide in house. Vendor management is the system of coordinating the entire vendor relationship – from acquiring a vendor through the delivery of goods and services, to submitting time cards and issuing paychecks, and all other functions in between.

Companies usually use employee vendor management to communicate plans to ensure all expectations are clearly communicated and reviewed before a job begins. A vendor management system is generally a useful and cost-effective investment that you can use to manage vendors, and to integrate their needs and work into your organization to help everything run smoothly.

When evaluating vendor management systems and vendor relationships, you may encounter acronyms and nomenclature pertinent to vendor management. Here are a few common ones:

• VMS: Vendor Management System or Vendor Management Software.
• VOP: Vendor on Premise. Some companies need to hire an actual staffing agency who employs vendors that work on site. This can happen when a company is experiencing high turnover, or when it has certain projects that require a large staff for a finite period of time.
• MSP: Managed Service Provider. This kind of vendor staffing agency can recruit and source quality talent, often in specialized fields.
• VMO: Vendor Management Office. Sometimes this is affiliated with a company’s human resources department, and sometimes it stands on its own.

So when researching for a suitable vendor management software solution for your credit union or business, make sure you ask the right questions