Vendor Management Review Template (Free)

What's Working Well?

Which vendor relationships are thriving, and what makes them successful?

Our design vendor consistently delivers high-quality work on time, thanks to their clear processes and open communication channels.

The marketing agency we work with really understands our brand voice and gives us useful strategic input.

Our cloud hosting provider has been incredibly responsive whenever we've had technical issues or needed to scale resources.

Pain Points & Challenges

What vendor-related issues are causing frustration or delays?

Our IT hardware vendor often ships incomplete orders, causing delays in our deployment timelines.

The invoicing process with our accounting firm is convoluted and leads to frequent billing disputes.

Our data center vendor's maintenance windows frequently conflict with our peak usage times, causing service disruptions.

Process & Workflow

How can we improve processes and workflows with our vendors?

Implementing a centralized vendor management system could help us track contracts, invoices, and performance metrics more efficiently.

Establishing clear service level agreements (SLAs) with vendors could help align expectations and improve accountability.

Conducting regular vendor performance reviews would give both sides feedback while there's still time to act on it.

Strategic Alignment

How can we better align vendor partnerships with our long-term goals?

Our current vendors may not have the expertise to support our planned expansion into the Asia-Pacific region. We should explore partnerships with local vendors.

As we shift towards a more sustainable business model, we may need to reevaluate our vendor selection criteria to prioritize eco-friendly practices.

To stay ahead of the competition, we should explore partnerships with vendors offering newer technologies.

Cost Optimization

How can we optimize costs and maximize value from our vendor relationships?

Consolidating our software vendors and negotiating enterprise-wide licenses could lead to significant cost savings.

Implementing a vendor performance-based pricing model could incentivize better service and quality from our partners.

Exploring offshore or nearshore vendors for certain services could provide cost advantages without compromising quality.

What is the Vendor Management Review?

The Vendor Management Review is a retrospective for the external partners your team depends on, from hosting providers to agencies and contractors. It gives you a regular, structured look at each relationship before small frustrations turn into a contract dispute. The board has five columns. What's Working Well? covers the vendors and practices worth keeping. Pain Points & Challenges is for the recurring problems, like late deliveries, billing disputes or a vendor that misreads your requirements. Process & Workflow looks at how you work with vendors day to day, Strategic Alignment asks whether your partners fit where the organization is heading, and Cost Optimization looks for savings and better value. It's most useful for teams that rely on several vendors or have a complicated buying process. Bring data where you have it, such as delivery times or invoice disputes, so the conversation rests on more than impressions.

Vendor Management Review format

What's Working Well? Which vendor relationships are thriving, and what makes them successful?: Start with the vendor relationships that are going well. Ask for specific examples, like reliable delivery or fast responses, then work out what makes them work and whether you can get the same from other vendors.
Pain Points & Challenges What vendor-related issues are causing frustration or delays?: Surface the recurring problems: poor communication, missed deadlines, quality issues or mismatched expectations. Be specific about each one, then dig into the cause before discussing fixes.
Process & Workflow How can we improve processes and workflows with our vendors?: Look at the processes around your vendors, from onboarding and approvals to invoicing. Find the bottlenecks and duplicated steps, and ask where clearer agreements or automation would save time on both sides.
Strategic Alignment How can we better align vendor partnerships with our long-term goals?: Step back and ask whether your vendors support where the organization is heading. Talk about where a partner could help with new markets or capabilities, and where you may need a different partner.
Cost Optimization How can we optimize costs and maximize value from our vendor relationships?: Look for ways to cut costs or get more from what you already spend, such as negotiating better rates or consolidating vendors. Agree on how you'll measure the value each vendor delivers.

When to use this retrospective

When you have enough vendor relationships that they need a regular review.
When recurring problems with a particular vendor need to be dealt with.
As part of a periodic vendor review, or before a contract renewal.
When a strategic change may affect your current vendors or call for new ones.

Ideas and tips for your retrospective meeting

Ask for honest feedback, and keep it about the relationship and the process, not personal blame.
Invite people from key vendors to give their side, either in this session or a follow-up.
Back up observations with data, such as delivery times or invoice disputes, wherever you can.
Give every improvement an owner and a due date.
Involve procurement, legal or finance when the discussion touches contracts or costs.
Look for fixes that help both sides, since a vendor relationship only improves if the vendor buys in.

Frequently asked questions

What is a Vendor Management Review?

It's a retrospective for reviewing your team's relationships with external vendors. The board covers what's working well, pain points, process and workflow, strategic alignment and cost optimization.

When should you run a vendor management review?

Run it on a regular schedule, before a contract renewal, after a vendor performance problem, or when your strategy changes. Any point where the team needs a shared view of a vendor relationship is a good time.

Who should take part in a vendor management review?

The people who work with the vendor day to day, plus whoever owns the contract. Bring in procurement, legal or finance when costs or terms are on the table.

Should vendors attend the review?

Sometimes. Running it internally first lets your team speak freely, and you can then share the findings with the vendor or invite them to a joint session.

How long does a Vendor Management Review take?

Plan for 60 minutes for one vendor or a small group. With five columns, timebox each one so Strategic Alignment and Cost Optimization don't get squeezed.