Vendor Management Policy - Impromptu Success

🤝 Strategic Vendor Management

This policy establishes standards for selecting, managing, and maintaining relationships with vendors and suppliers to ensure quality service delivery, cost effectiveness, and operational excellence at Impromptu Success.

Policy Overview & Objectives

🎯 Policy Purpose

To establish a comprehensive framework for vendor selection, management, and performance evaluation that ensures Impromptu Success maintains high-quality service delivery while optimizing costs and minimizing risks.

📋 Key Objectives

Quality Assurance

Ensure all vendors meet our quality standards and customer service expectations

Cost Optimization

Achieve competitive pricing while maintaining quality and service levels

Risk Management

Minimize operational, financial, and reputational risks through proper vendor oversight

Compliance

Ensure all vendor relationships meet legal and regulatory requirements

Vendor Selection Process

Needs Assessment

Define requirements and specifications

Market Research

Identify potential suppliers and options

RFP Process

Request proposals and quotations

Evaluation

Assess proposals against criteria

Due Diligence

Verify credentials and references

Selection

Final vendor selection and approval

📊 Evaluation Criteria

Criteria	Weight	Evaluation Factors	Scoring Method
Quality & Reliability	30%	Product quality, service reliability, past performance	1-10 scale with documentation
Cost Effectiveness	25%	Pricing, payment terms, total cost of ownership	Comparative analysis
Service Capability	20%	Support, responsiveness, technical expertise	Reference checks and testing
Financial Stability	15%	Credit rating, financial statements, business longevity	Financial analysis
Compliance & Ethics	10%	Legal compliance, ethical standards, certifications	Documentation review

Vendor Categories & Management

Vendor Category	Description	Management Level	Review Frequency
Technology & Equipment Vendors
Parts Suppliers	Computer components, mobile device parts, replacement hardware	Strategic	Quarterly
Equipment Vendors	Diagnostic tools, repair equipment, testing devices	Strategic	Semi-annual
Software Providers	Diagnostic software, POS systems, business applications	Operational	Annual
Service Providers
Professional Services	Legal, accounting, consulting, marketing	Tactical	Annual
Facility Services	Cleaning, maintenance, security, utilities	Operational	Semi-annual
Insurance Providers	Business insurance, liability, worker's compensation	Strategic	Annual
Business Partners
U-Haul Partnership	Truck rental services, franchise relationship	Strategic	Quarterly
Financial Services	Banking, payment processing, credit services	Strategic	Semi-annual
Telecommunications	Phone, internet, data services	Operational	Annual

Contract Management

📄 Contract Requirements

Essential Contract Elements

Detailed scope of work or products
Pricing structure and payment terms
Performance standards and metrics
Delivery schedules and milestones
Quality specifications and testing
Warranty and support provisions
Termination clauses and notice periods
Dispute resolution procedures

Risk Management Clauses

Liability limitations and indemnification
Insurance requirements and coverage
Confidentiality and data protection
Compliance with laws and regulations
Force majeure provisions
Intellectual property protections
Change management procedures
Performance bond requirements (if applicable)

💡 Contract Approval Process

Under $1,000: Department manager approval
$1,000 - $5,000: Operations manager approval
$5,000 - $25,000: General manager approval
Over $25,000: Owner/executive approval required
All strategic vendors: Executive review regardless of amount

Performance Monitoring & Evaluation

📊 Key Performance Indicators

KPI Category	Metrics	Target	Measurement Method
Quality	Defect rate, return rate, customer complaints	< 2%	Monthly tracking and reporting
Delivery	On-time delivery, order accuracy, lead times	> 95%	Order tracking and analysis
Service	Response time, resolution time, availability	< 24 hours	Service ticket analysis
Cost	Price competitiveness, cost savings, invoice accuracy	Market rate ± 5%	Market comparison and analysis
Compliance	Contract adherence, regulatory compliance, documentation	100%	Audit and inspection

📅 Review Schedule

Monthly

Performance metrics review

Quarterly

Strategic vendor assessments

Semi-Annual

Contract and relationship reviews

Annual

Comprehensive vendor evaluation

Vendor Relationship Management

🤝 Relationship Building

Regular communication and check-ins
Joint business planning sessions
Feedback and improvement discussions
Collaborative problem-solving
Recognition of exceptional performance

📞 Communication Protocols

Designated primary and backup contacts
Escalation procedures for issues
Regular status meetings and reports
Documentation of all communications
Response time expectations

🔄 Continuous Improvement

Regular process improvement initiatives
Technology and innovation discussions
Cost reduction opportunities
Quality enhancement programs
Best practice sharing

Issue Resolution & Termination

⚠️ Performance Issues

Progressive Resolution Process

Step 1

Informal discussion and coaching

Step 2

Formal written notice and improvement plan

Step 3

Contract modification or penalties

Step 4

Contract termination

📋 Termination Criteria

Performance: Consistent failure to meet agreed standards despite improvement efforts
Financial: Financial instability or bankruptcy that threatens service delivery
Compliance: Violation of legal, regulatory, or ethical requirements
Strategic: Changes in business direction or vendor no longer aligned with needs
Contractual: Breach of contract terms or failure to fulfill obligations

Policy Administration

👤 Policy Owner

Operations Manager

📅 Review Cycle

Annual policy review

✅ Approval

Executive management

📖 Training

All staff involved in vendor management

💡 Policy Compliance

All employees involved in vendor selection and management must follow this policy. Non-compliance may result in disciplinary action and increased business risk.