A Deep Dive Into Vendor Management Job Responsibilities in 2024

by Ashley Poynter

Content Manager

A Deep Dive Into Vendor Management Job Responsibilities in 2024

Vendor management job responsibilities are changing in a big way. Then again, so is the world of vendor management.

Think about vendor management as the business world’s equivalent of managing a top-tier sports team where a team manager no longer just organizes training schedules but also strategizes for the big games. Similarly, the role of vendor managers has evolved and expanded. Initially, these folks focused on the nuts and bolts of collecting vendor tax and payment information, and maybe invoice processing. However, these professionals are now key players in executing and influencing company strategies through smarter, more strategic supplier engagements and a heightened focus on strategic business outcomes.

Too often, though, the people tasked with executing these strategies have no clout, are admin-level at best, and have an outsized risk sitting on their underpaid shoulders. It’s time to consider the difference between what this role is doing and what people think it’s doing.

I’m going to look at this shift, break it down, and help you understand what vendor management roles should entail – and what they might entail in the future.

The Shift from Clerical to Strategic Roles

Strategic Vendor Management Job Responsibilities in 2024

— Strategic vendor onboarding

— Enhanced compliance management

— Proactive risk management

— Cost management and value optimization

How Automation Augments Vendor Management Job Responsibilities

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The Shift from Clerical to Strategic Roles

Remember when vendor management job responsibilities revolved around paperwork? It used to be all about keeping track of orders, manually entering vendor data, calling and emailing to verify vendor bank account information, and completing sanctions checks.

Essential, yes, but hardly the stuff of strategic legend. And times are a’changing.

So, what sparked this shift? Three words: technology, competition, and expectations. With automation taking over repetitive tasks, the competitive edge sharpened, and CEOs started looking towards vendor management not just to handle operations smoothly but to contribute to the financial strategic beating heart of the company. This shift reflects a broader movement towards efficiency and impact across all business processes. Tom Rogers, Founder and CEO of Vendor Centric, explains more below:

And forgive me for assuming/hoping you have left the manual world of vendor management behind. I know that not everyone has made the jump—and others are in the middle of the jump. Switching from fully analog to fully automated is easier said than done. No matter where you are in your modernization of vendor management journey, it’s still important to understand how vendor management job responsibilities are evolving to keep a finger on the pulse of the role.

Strategic Vendor Management Job Responsibilities in 2024

Right under most of our noses, the vendor management role has changed from primarily a tactical support function to a critical strategic asset. While this transformation is a response to the changing business landscape, where technology, market shifts, and strategic foresight form the backbone of operations, it’s also because of something much simpler—payments fraud.

Vendor managers today are not just overseers of data entry; they are forensic detectives focused on sifting through reams of data to find the true from the false. They are keepers of a compliant vendor file. They’re orchestrators of business growth and innovation through savvy execution of payment strategies. They are essential to productive and symbiotic supplier partnerships.

Let’s look at some of the more strategic vendor management job responsibilities and what they entail.

Strategic vendor onboarding

In the past, vendor onboarding was a manual, labor-intensive process focused on collecting and verifying basic information. Today, it’s a strategic activity that sets the foundation for a productive supplier relationship and long-term value creation. Vendor managers now leverage automation and digital tools to streamline onboarding, ensuring accuracy and compliance from the outset. Specific strategies include:

Automated Data Collection: Utilizing digital forms and platforms to collect vendor information quickly and accurately, reducing the risk of manual errors.
Comprehensive Verification: Implementing multi-layered verification processes, including automated background checks, bank account verification, and compliance screening.
Seamless Integration: Ensuring that new vendors are seamlessly integrated into the organization’s supply chain and payment systems, enabling immediate operational efficiency and subsequent (positive!) business impact.

By transforming the onboarding process away from PDFs and paper forms, vendor managers reduce lead times, improve data accuracy, and set the stage for successful supplier relationships.

Enhanced compliance management

Vendor managers now play a critical role in ensuring that their organizations comply with myriad local, national, and international regulations. This involves more than just ticking boxes; it requires a strategic approach to risk management and legal adherence. Key responsibilities include:

Automated Compliance Checks: Leveraging technology to perform real-time compliance checks against global, federal, and state regulations, such as SAM.gov and OFAC sanctions lists.
Ongoing Monitoring: Continuously monitoring vendor compliance through automated systems that alert the company to any changes in a vendor’s status.
Internal Compliance Policies: Developing and enforcing internal compliance policies, ensuring all vendor interactions adhere to organizational standards and legal requirements.

This proactive approach to compliance reduces the risk of legal penalties and enhances the organization’s reputation for ethical and lawful operations.

Proactive risk management

Risk management has expanded from a checkbox task to a critical strategic domain. Today’s vendor managers need to be part detective and part fortune-teller, identifying potential risks from compliance traps and regulatory changes — and planning ahead to mitigate them.

This involves more than just having good instincts; it requires sophisticated analytical tools and a proactive mindset to keep the supply chain resilient against all odds. Additionally, it’s about value creation rather than a static, reactive function, which Tom Rogers highlights below:

In 2024, vendor managers are essential to their organization’s risk management strategy. They use advanced tools and data analytics to identify, assess, and mitigate risks associated with vendor relationships. They participate in vendor vetting, risk assessment, and continuous risk monitoring.

By being integral to and implementing a proactive approach to risk management, vendor managers can protect their organizations from financial losses, operational disruptions, and reputational damage.

Cost management and value optimization

Gone are the days when cutting costs was enough. Now, it’s about optimizing value—making sure that every dollar spent is an investment in improving outputs and outcomes. Vendor managers now engage deeply with the terms of payment, payment types, and curtailing maverick spend.

In 2024, technology has been the game-changer in vendor management. With tools like AI, IoT, blockchain, and simple digital vendor onboarding forms at their disposal, vendor managers can now manage data with greater efficiency, track compliance automatically, and even predict future trends. Leveraging these technologies helps not just cut down manual work but also makes smarter, faster decisions.

How Automation Augments Vendor Management Job Responsibilities

Automation is an important tool in the vendor manager’s toolkit. These technologies help streamline processes like never before—from automating vendor onboarding to tracking compliance with unprecedented precision.

Vendor managers today are not just facilitators but strategic architects who ensure that vendor interactions contribute to the overarching goals of efficiency, compliance, and profitability.

Let’s look at how vendor management job responsibilities now go hand-in-hand with automation.

Vendor onboarding and compliance

The vendor onboarding process has become a critical initial step in establishing robust vendor relationships. In other words, it’s no longer just about collecting information and filling out forms; it’s about strategically assessing how a vendor fits into the broader business goals. This includes ensuring compliance with both external regulations and internal policies, which can significantly impact operational efficiency and risk management.

Automated compliance checks: Vendor managers leverage technology to automate and streamline compliance checks. As a result, onboarding speeds up, and human error decreases, enhancing security.

Strategic alignment: From the outset, vendor managers are tasked with aligning vendor capabilities and objectives with the company’s strategic needs, ensuring that every partnership delivers tangible value.

Risk management

Risk management is a cornerstone of modern vendor management, encompassing everything from financial stability checks to ensuring adherence to industry-specific regulations. Subsequently, vendor managers are responsible for the following:

Continuous risk assessment: Implementing tools and processes for ongoing assessment of vendor risks, including financial health, supply chain vulnerabilities, and compliance with relevant laws and regulations.

Proactive problem solving: Identifying potential risks before they become issues and working collaboratively with vendors to mitigate them.

Payment optimization

Digital payment solutions are on the rise. Subsequently, vendor managers are now key players in optimizing payment processes. This involves:

Electronic and virtual payments: Transitioning vendors to electronic payments, such as ACH and virtual cards, which reduce costs, increase transaction speed, and improve payment security.

Rebate and incentive management: Utilizing payment methods that offer rebates or incentives, turning the payables department into a revenue-generating operation.

Technology integration

Technology is becoming more ingrained in business processes. As a result, vendor managers must be proficient in various digital tools and platforms that enhance vendor interaction and performance tracking.

Platform management: Overseeing the implementation and management of vendor management software that centralizes data and automates workflows.

Innovation advocacy: Pushing for the adoption of new technologies that can improve efficiency and effectiveness in vendor interactions.

In 2024, vendor managers are pivotal in driving business success. Vendor management job responsibilities extend far beyond simple administration to include strategic planning, risk mitigation, and contributing directly to the bottom line through innovative payment strategies and technology integration.

Get Ready For Vendor Management Appreciation 2024

Vendor management job responsibilities might be changing, but our holiday celebration for them remains. Will you be partying with us for Vendor Management Appreciation Day (VMAD) 2024? We highly encourage you to join us!

Why? Incidentally, there’s no expiration date on honoring one of the most important, under-recognized roles across industries: vendor management.

Join us in observing Vendor Management Appreciation Day (VMAD)! We’re gearing up for the 2024 celebration, and we want you to be a part of it!

VMAD is a new holiday geared toward unifying vendor management professionals and celebrating innovation in the field.

Moreover, we’ve released gifts each month to help you supercharge your vendor management efforts. Additionally, we’re planning some awesome events so everyone can connect and celebrate the important, strategic role of vendor management.

In the meantime, learn more here, and grab some free vendor management goodies.