Roles and Responsibilities of a Vendor Manager
Table of Contents
- Jaro Education
- 12, September 2025
- 2:00 pm
Vendor relationships are critical in the current globalized business world, where company operations are often outsourced. Third-party suppliers provide a seamless environment that meets customer demands by offering software, hardware, services, and other solutions. However, to manage this whole network and ensure a seamless integration, employ vendor managers.
These individuals are tasked with developing, maintaining, and streamlining vendor relationships to achieve quality, efficiency, and cost savings. This guide discusses vendor management roles and responsibilities, necessary skills, career development, and real-world challenges, as well as how to prepare using executive programs.
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Introduction to Vendor Management
Vendor management is a key part of the strategy and operational management of external suppliers. It encompasses the entire vendor lifecycle, including vendor selection and onboarding, performance tracking, contract management, and risk mitigation. Best-functioning organizations in terms of vendor management have succeeded in:
- Quality service and on-time delivery
- Cost benefits and high returns on funds
- Minimized risks and increased compliance
- Long-term, supplier relationships based upon trust
*shutterstock.com
What Does a Vendor Manager Do?
A vendor manager will manage the relationship between suppliers to be aligned with organizational objectives. This vendor manager job includes:
- Making suppliers onboard and vetting new ones
- Negotiating SLA and contracts
- Monitoring vendor performance with KPIs
- Addressing escalations and compliance challenges
- Making vendor outputs match internal stakeholders’ needs
They act as the intermediary between internal departments, including procurement, legal, finance, and operations, and external suppliers, establishing collaboration and responsibility.
Core Vendor Management Roles and Responsibilities
The following are the major vendor management roles and responsibilities that are part of success:
Vendor Selection
- Carry out market research activity and send RFPs/RFIs
- Compare proposals based on quality, cost, reliability, and fit
- Develop a stable and approved pool of vendors
Contract Negotiation
- Price, terms, warranties and SLAs are defined
- Negotiate with legal units to conclude legally binding contracts
- Add the performance measures and the terms of renewal
Performance Monitoring
- Monitor the level of accuracy of tracking, the turnaround period, and the responsiveness of the SLA
- Implement dashboards and do constant review meetings
- Make sure that there are corrective steps when issues arise
Risk Management
- Determine risks such as financial, operational, regulatory and cyber
- Come up with contingencies and conduct vendor health checks
- Exercise preventive measures against risks by having common protocols
Relationship Management
- Be a vendor liaison, settling disputes in a friendly way
- Lead the pursuit of excellence consistently with the help of strategic cooperation
- Encourage long-term growth and value creation
Compliance & Audits
- Make sure that legal standards and regulatory compliance are achieved by the vendors
- Arrange internal and third-party audits to be accountable
- Ensure that records are well-documented to be transparent
Cost Optimization
- Use price benchmarking of vendors and perform alternative analysis
- Bargain on the price reduction of volume discounts and centralize the vendor base
- Trigger with evidence-based data and drive a cost-saving initiative
Data Analytics & Reporting
- Study the trends of vendor performance and spending analytics
- Regularly generate reports for the top management
- Use insights to inform sourcing strategies and renewals
Essential Skills for a Vendor Manager
For doing a successful job as a vendor manager, both interpersonal and technical skills will be required:
- Negotiation: obtain good terms under the contract
- Effective communication: coordinate the internal and the external stakeholders
- Analytical thinking: analyse vendor information and their performance
- Project management: handle more than one engagement with vendors
- Risk assessment: prevent and foresee possible problems
- Legal/compliance understanding: guarantee the integrity of contracts
- Relationship-building: grow in cooperative relationships
Detailed Vendor Management Job Description
Job Title: Vendor Manager
Location: On-site/Remote
Reports To: Head of Procurement or Operations Director
Responsibilities:
- Tame end-to-end vendor management
- Formulate sourcing plans to be in line with corporate objectives
- Carry out negotiations on contracts and drafting of SLA
- Monitor vendor performance and drive improvements
- Enforce compliance and perform vendor audits
- Keep in contact with departments to collect requirements
- Manage conflict and the state of relations
- Create management reports and assessments.
Requirements:
- Bachelor’s degree in Business, Supply Chain, or related courses
- 3–7 years of vendor/supplier management experience
- Experience in ERP or Vendor Management Systems
- Strong negotiation, analytical, and communication skills
- The awareness of contract legislation and regulation requirements
Career Progression & Opportunities
Ordinary career path:
- Vendor Coordinator / Analyst
- Vendor Manager
- Senior Vendor Manager
- Vendor Governance / Supplier Relationship Director
- VP / Head of Procurement, Supply Chain, or Operations
An experienced vendor manager can have control of international vendor portfolios or a digital procurement transformation program.
Key Challenges in Vendor Management
Vendor management roles and responsibilities also include dealing with challenges such as:
- Wrong expectations or changes in the demands
- Poor performance of vendors
- SLA breaches and contractual conflicts
- Financial instability of vendors and crises in the supply chain
- Internal resistance to change or onboarding new vendors
- Security, data privacy, and compliance triggers
It is important to deploy robust governance systems, effective communication, and purposeful risk management.
Industries with High Demand for Vendor Managers
Vendor management is vital in organizations in any industry:
- Information Technology: services, infrastructure and software
- Healthcare: pharma vendors, medical equipment
- Manufacturing: parts, machinery, raw materials
- Financial Services: out-sourced procedures, fintech
- Telecommunications: software, network equipment
- Retail & E-commerce: supply chains, storing, and supplier ecosystems
- Education & EdTech: online networks, media proprietors
Compensation and Salary Trends
In India, the average salary of a vendor manager differs:
- Entry-level (1–3 years): ₹6–8 LPA
- Mid-career (4–7 years): ₹10–15 LPA
- Senior-level (8+ years): ₹15–25+ LPA
The remuneration may go up to ₹30+ LPA globally, particularly in technology and finance.
Vendor Manager vs Procurement Manager
| Attribute | Vendor Manager | Procurement Manager |
|---|---|---|
| Focus | Supplier relationships and performance monitoring | The efficiency of the procurement process and sourcing |
| Core Responsibilities | Negotiation, SLA enforcement, LCM of the vendor | Buying, PO creation, cost reduction |
| Keywords Metrics | SLA adherence, ROI of the vendors, and health relationships | Conformance, PO costs, Cycle time |
| Perspective | Growth of partnership in the long term | Tactical sourcing and procurement effectiveness |
Although there is some overlap, performance and relationship are managed mainly by a vendor manager, whereas transaction efficiency and cost control are managed by a procurement manager.
Why Pursue a Career in Vendor Management?
- Strategic cost, quality, and vendor health impact
- A competitive pay scale and increasing area demand
- Technological, healthcare, production, and manufacturing
- Leadership career in procurement, supply chain, and operations
- Engaging job in the sphere of negotiation, analytics, and communication
Elevate Your Vendor Management Career with Premier Executive Programs
Individuals planning to become successful vendor managers should arm themselves with the most advanced skills in the areas of sourcing, analysis, contract negotiation, and supply chain strategy to advance well. Some of the major Indian colleges have executive courses for working professionals who want to master vendor management roles and responsibilities.
People can access these programs using the services of known aggregators such as Jaro Education, which links students with high-quality courses in management and operations.
Advanced Certificate Programme in Smart Supply Chain Management & Transformation - IIM Kozhikode
The global business landscape demands efficient, transparent supply chain management. Recognizing this, IIM Kozhikode offers the Advanced Certificate Programme in Smart Supply Chain Management & Transformation.
Delivered by IIM Kozhikode faculty, the programme uses interactive lectures, case studies, and real-world projects. It is ideal for mid-to-senior level professionals seeking to enhance skills and contribute to digital transformation. Successful completion equips participants to lead strategic initiatives, drive innovation, and optimize performance in smart supply chain management.
Executive Certificate Program in Supply Chain Analytics and Management – IIM Mumbai
This programme enhances supply chain expertise with a strong focus on data analytics, equipping professionals to navigate complex supply chains, leverage data for decision-making, and drive operational excellence.
Who should attend: Ideal for mid-to-senior level professionals (supply chain, logistics, operations managers, business analysts, consultants) seeking to optimize supply chain processes and leverage data strategically. Participants typically have work experience and an interest in advancing in supply chain and analytics.
Executive Programme in Operations Management and Analytics – IIT Delhi
Solid basis on operations and focus on vendor performance indicators, contract management, and decision tool support system.
Post Graduate Certificate Programme in Supply Chain Operations & Analytics – IIM Nagpur
The program addresses an advanced level of professionals who deal with procurement and networks of vendors; thus, it incorporates easy-to-implement tools and case-based learning in real-time situations.
Such qualifications enhance managerial skills and decision-making abilities and are perfect for professionals focused on rising ranks in vendor management job roles.
Final Thoughts
The vendor manager is a strategic and crucial position in the present business ecosystems. The duties are multifaceted and complex because each professional must negotiate the contract, select the best vendors, manage performance, and mitigate risk. But clear career progression, strategic impact, growing demand, and compelling compensation make this a highly desirable career path.
The executive programs provide professionals with a competitive advantage, which includes the ability to implement the frameworks, analytics, and skills of leadership necessary to succeed in vendor management. With most organizations becoming highly dependent on third-party partnerships, there will always be an ever-growing need for a competent vendor manager.
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