Disciplined Agile

Vendor Management Terminology

The following terms are pertinent to vendor management: 

  • Offering. A product, service, or combination thereof.
  • Vendor. A vendor is an external organization or person that provides offerings that are of potential interest to your organization. Also referred to as a supplier. 
  • Partner. A vendor with which you currently have a relationship with. 
  • Vendor management. The goal of vendor management is to help source/identify and procure the right offerings from vendors; to negotiate and then manage contracts with partner organizations; to oversee relationships and partnerships to ensure partner excellence and increase overall value of partnerships; and to address the risk associated with external partnerships.
  • Sourcing. Sourcing is that act of identify the potential source(s) of an offering, evaluating the choice(s), and choosing the best fit for your organization. Sourcing is an aspect of procurement.
  • Procurement. The act of sourcing, developing an agreement with, and potentially purchasing offerings from vendors.