Comments on: Vendor Management - Project Managers Get a C-minus http://www.pmhut.com/vendor-management-project-managers-get-a-c-minus Sun, 12 Feb 2012 01:34:05 +0000 http://wordpress.org/?v=abc hourly 1 By: JohnD http://www.pmhut.com/vendor-management-project-managers-get-a-c-minus/comment-page-1#comment-18520 JohnD Mon, 08 Mar 2010 23:18:26 +0000 http://www.pmhut.com/?p=4947#comment-18520 Good article. As you point out there are many aspects to be considered by PM's in creating their plans surrounding the performance and risks of vendors and subcontractors. The approach of creating a more inclusive plan beyond the immediate tangible cost and schedule is a reflection of the trend away from contract-based supplier and customer relationships towards a more integrated, holistic, end-end supply chain. The treatment of suppliers and customers as long-term mutual partnerships vs disposable and replaceable accessories is long overdue in many industries. The challenge for the PM remains how to quantify the intangible ROI's and to justify them based on their long-term value (potentially beyond the scope of an individual project) vs short-term cost. This requires a method for capitalization vs expense, which is a whole other [financial] can of worms! Good article. As you point out there are many aspects to be considered by PM’s in creating their plans surrounding the performance and risks of vendors and subcontractors.

The approach of creating a more inclusive plan beyond the immediate tangible cost and schedule is a reflection of the trend away from contract-based supplier and customer relationships towards a more integrated, holistic, end-end supply chain. The treatment of suppliers and customers as long-term mutual partnerships vs disposable and replaceable accessories is long overdue in many industries.

The challenge for the PM remains how to quantify the intangible ROI’s and to justify them based on their long-term value (potentially beyond the scope of an individual project) vs short-term cost. This requires a method for capitalization vs expense, which is a whole other [financial] can of worms!

]]> By: David Atkinson http://www.pmhut.com/vendor-management-project-managers-get-a-c-minus/comment-page-1#comment-18508 David Atkinson Mon, 08 Mar 2010 16:52:03 +0000 http://www.pmhut.com/?p=4947#comment-18508 Good article, but stating that most project managers take only price into consideration is inaccurate. Most project managers I've known, including myself, consider first the reputation of the vendor to make an informed decision. Low price is not the top nor the only requirement for selecting a vendor for most project managers. Thanks - David A. Good article, but stating that most project managers take only price into consideration is inaccurate. Most project managers I’ve known, including myself, consider first the reputation of the vendor to make an informed decision. Low price is not the top nor the only requirement for selecting a vendor for most project managers.

Thanks - David A.

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