Vendor Management
Developing vendor relationships through negotiation and rapport building, structuring “win-win” situations.
Level 1 Introductory: Demonstrates introductory understanding and ability and, with guidance, applies the competency in a few, simple situations. Can direct people to the appropriate source for further information.
BEHAVIORS
- Maintains current vendor information.
- Identifies major vendors, suppliers and business partners, and their products and services.
- Identifies the benefit of partnering with the vendor(s).
- Disseminates data required for reporting obligations.
- Identifies contract milestones, payment schedules and deliverables.
QUESTIONS
- Tell me about a vendor contract with milestones that you managed.
Probing Questions
* What was the contract for?
* What were the milestones?
* How did you go about managing the contract?
* What were the results?
- Tell me about a time when you identified a new potential vendor.
Probing Questions
* Who was the vendor?
* How did you identify the vendor?
* What did you do next?
* Was the vendor finally adopted by the organization?
Level 2 Basic: Demonstrates basic knowledge and ability and, with guidance, can apply the competency in common situations that present limited difficulties.
BEHAVIORS
- Works with legal specialists to create vendor agreements.
- Articulates the need for monitoring compliance with vendors.
- Identifies the best means to monitor compliance with vendors.
- Provides feedback to potential and current vendors.
- Records any issues in supplier performance, escalating performance issues to higher authorities , when necessary.
- Maintains budgets and pricing for vendor contracted products.
QUESTIONS
- Describe a time when you were involved in building a contract with a vendor.
Probing Questions
What was the contract for?
* What was your role in developing the contract?
* What did you learn during the process?
* What was the result of the contract?
- Tell me about a time when you identified a potential issue with a vendor.
Probing Questions
* What was the issue?
* How did you identify it?
* How did you resolve it?
* What was the result?
Level 3 Intermediate: Demonstrates solid knowledge and ability, and can apply the competency, with minimal or no guidance, in the full range of typical situations. Would require guidance to handle novel or more complex situations.
BEHAVIORS
- Develops vendor selection and performance criteria.
- Evaluates vendor agreements for compliance and fulfillment.
- Obtains legal advice, to resolves contract disputes and terminate contracts.
- Negotiates resolutions to contract disputes.
- Develops vendor management plans.
- Provides suggestions and/or recommendations to superiors with respect to contract management of complex requirements.
QUESTIONS
- Tell me about a contract dispute that you were involved in.
Probing Questions
* What was the dispute about?
* What was your role?
* What did you do?
* What was the result?
- Describe a new or improved vendor selection plan that you developed.
Probing Questions
* What were your role and responsibilities?
* What made you decide that a new or improved plan was necessary?
* How did you decide on what would be in the new plan?
* Was the new plan effective in selecting vendors appropriate for the organization?
Level 4 Advanced: Demonstrates advanced knowledge and ability and can apply the competency in new or complex situations. Guides other professionals.
BEHAVIORS
- Develops programs to incentivize performance improvement and contract delivery.
- Recommends significant remedial action, up to and including financial penalties, where poor supplier performance is reported.
- Evaluates vendors for highly complex or strategic initiatives.
- Develops plans for specific business initiatives with vendors.
- Ensures that full benefits to the organization from agreements with the vendor(s) are realized.
- Provides guidance with respect to complex acquisition processes.
QUESTIONS
- Tell me about a time when you developed a new or improved vendor incentive program.
Probing Questions
* What were the components of the new or improved plan?
* How did you develop the components of the new or improved plan?
* What other resources did you use?
* How did the new plan improve vendor performance?
- Describe a complex procurement program with which you were involved.
Probing Questions
* What was the circumstances surrounding this situation?
* What was your role?
* What actions did you take?
* How did your involvement add to the value of the procurement process?
Level 5 Expert: Demonstrates expert knowledge and ability, and can apply the competency in the most complex situations. Develops new approaches, methods, or policies in the area. Is recognized as an expert, internally and/or externally.
BEHAVIORS
- Establishes vendor agreement templates, principles and standards.
- Oversees the development of the policies and procedures for working with vendors.
- Develops the contracting review and monitoring program to ensure compliance with policies and decisions.
- Ensures that vendor evaluation methodologies are transparent and free from bias.
- Broadens the scope of existing agreements with vendors to increase the business benefit to both parties.
QUESTIONS
- Please describe the largest vendor program with which you were involved.
Probing Questions
* What was being procured?
* What was the evaluation process?
* How did you communicate issues?
* How did the vendor program perform in relation to expectations?
- Tell me about a contract review process that you designed and implemented?
Probing Questions
* Why was a new or revised process required?
* What was your role?
* What resources did you call upon to design and implement the new process?
* What was the result?