Vendor management is the discipline of managing supplier relationships end-to-end - contracts, performance, risk, compliance, and value capture. It sits at the intersection of procurement, finance, and operations.
What vendor management covers
Vendor onboarding and due diligence, contract negotiation and lifecycle, performance monitoring, risk assessment, rebate and entitlement capture, and relationship governance. Mature vendor management treats the vendor portfolio as a managed strategic asset.
Where CPM adds value
Contract Performance Management provides the visibility layer vendor management needs: continuous reconciliation of contract terms against ERP transactions, so vendor performance is measured against what was actually agreed.
