• Create A Dedicated Vendor Management Team. Assign the task of vendor management to a select few within the organization. 
• Organize Suppliers and Vendors.
• Confidentiality. 
• Risk Management. 
• Effective Communication. 
• Place a Premium on Value. 
• Build a Long-Term Relationship.
  

Vendor management is the process that empowers an organization to take appropriate measures for controlling cost, reducing potential risks related to vendors, ensuring excellent service deliverability and deriving value from vendors in the long-run. So, that's where the vendor management system or VMS comes in place.

Communication skills to effectively write reports, perform vendor research and to share findings from sales data with other key stakeholders. Negotiation skills to renew contracts and to make changes to existing vendor contracts. Multi-tasking skills to juggle several vendors and varying product services.

Vendor management software is a term that describes the processes software organizations use to manage their suppliers, who are also known as vendors. Vendor management includes activities such as selecting vendors, negotiating contracts, controlling costs, reducing vendor-related risks and ensuring service delivery.