Thinking of setting up a Vendor Management Office (VMO)? Here are three key strategies to implement an effective Vendor Management Office

Create a 360 degree Communication Channel: Don't just focus on executive communication, get the entire team involved and engaged. No bottom-up or top-down communication only. Make it a 360 degree communication channel where everyone who has a role is involved actively.

Implement SLA's and KPI's: Service Level Agreements are important but so are Key Performance Indicators to track not just vendor performance but also outcomes of the contractual process, result, and any qualitative measures that align with the company's core values. Service Level Agreements should be measurable and achievable but not so stringent that they are difficult to achieve and create all around frustration.

Create streamlined processes:  Create simple processes that are comprehensive and logical yet also easy to follow. Don't create a paperwork nightmare, processes that require endless meetings after meetings or processes that have so many steps that the overal project goals get lost in the mounds of paperwork and approvals.

Learn how to negotiate effectively: Negotiation is an art. But when does negotiation become counterproductive or is ineffective? Create a competitive bidding process to get the best deal. Avoid single sourcing just because it's more convenient.