Vendor Management Best Practices for Facility Managers

The majority of facility managers and their staff are adequately equipped to manage the daily operations and maintenance of their facilities. However, certain tasks may not be able to be done in-house because of a lack of knowledge or limited employee time. This is where vendors enter the picture. Vendors are vital to building operations, as they can complete tasks that would be impossible for the staff of a facility to accomplish on their own.

Facility managers must have the correct information to determine which vendors to contact for specific jobs. And vendor management is crucial to keeping your facility organized, no matter how big or small it is.

In the article below, we share the best practices for vendor management to get you started and make sure that your facility functions optimally.

Why Vendor Management Is Important

Facility managers work with a variety of vendors to run their facilities more efficiently. The facility manager may work with a variety of companies, including preferred contractors, cleaning services, plumbers, electricians, painters, mechanics, and cleaning supply companies. It can be difficult to keep track of all the contact numbers, names, and information.

To achieve success, companies must develop a strategy for identifying, evaluating, and selecting vendors. At the same time, it is important to minimize risks and maintain compliance. Luckily, many tools can help companies manage their vendors effectively.

If you’re having difficulty with vendor management, consider enlisting the help of a reputable vendor relationship management company. They will not only provide you with the tools to manage your vendors so that you can focus on your core business objectives. Objectives include growth and progress, for instance. But, by tapping into their expertise, you may also reap other rewards in the future.

Vendor Management Best Practices

As mentioned previously, regardless of the size of your company, as a facility manager, you should adopt certain best practices that can help you improve your vendor management.

Keep Track of Vendor Information

Streamlining and automating operations can lead to better business results. A total of 67% of companies use business process automation to automate and streamline their day-to-day repetitive tasks.

When it comes to facility managers, one of their main duties should be maintaining detailed vendor records in a central location. And facility management software can help with that. This type of software allows for paperless workflows as well as the ability to sort and organize information according to need. It is especially helpful when you are benchmarking facility management vendors.

Facility management software can be used to manage information about vendors and work orders in multiple locations or larger facilities. A company can achieve better results by outsourcing vendor and facility management rather than comparing different software packages.

Spreadsheets are also a good place to begin if you do not yet have a central database. While spreadsheets can be useful, software for facility management is more reliable and offers more features.

Incorporate Vendors into Your Preventative Maintenance Plan

When a work order is generated for an asset, you must know who to call to do the job. Additionally, you’ll need to know whether the asset is still under warranty so that you don’t waste money in vain. Tracking the work performed by your vendors can save you a lot of headaches. You run the risk that vendors will not fulfill their contracts or miss out on preventive maintenance if you don’t streamline vendor management in your facility.

It can be a real pain to search for facility management data in different locations. So make sure you track vendor labor within your work order software. The software acts as a central database of vendor receipts. Plus, it provides historical documentation for your facility in the event of an audit.

Optimize Vendor Management at Your Facility

It’s possible to set up a system that covers all the points above, but if you don’t use it properly, it won’t work. Take steps to organize vendor information so that it’s available when you need to speak with outside parties. Investing in the right software solution can help you:

• Add, edit, or erase vendor contact details.
• Indicate whether you plan to renew the vendor contract.
• Set reminders for calling and scheduling an appointment with the vendor.
• Note contract expiration dates.

Once you’ve collected all the data needed, it will be much easier to manage external vendors than if you were just winging it. Your team will also find it easier to manage vendors. Putting all vendor information in one place will reduce their stress levels and improve your department’s organization.

Final Thoughts

Reliable vendors offer facility managers peace of mind, a maximized budget, and the opportunity to focus on core responsibilities. By working with a vendor relationship management company and following the best practices outlined above, you can stay on top of everything and meet your company’s unique needs.

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