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Aavenir Atlas early access is open Contractflow on the ServiceNow Store since 2019 Runs on ServiceNow, or standalone ProcureTech100 2025/26 Pioneering Digital Solution ISO/IEC 27001:2022 certified, SOC 2 Type 2 compliant

Glossary

What is vendor relationship management?

Vendor relationship management is the practice of building trust and shared value with suppliers, through clear expectations, regular communication and fair terms, so both sides gain over time.

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What it covers

It goes beyond transactions. Vendor relationship management sets out how the company works with each vendor: who owns the relationship, how performance is reviewed, how issues are raised and how both sides plan improvements. The depth varies, with strategic vendors getting close partnership and routine vendors a light touch.

Three strategies that work

  • Build partnerships. treat key vendors as partners, share plans and involve them early.
  • Communicate often. regular reviews, clear contacts and quick answers to questions.
  • Create a win win. fair terms, prompt payment and shared rewards for improvement.

Why it matters

Strong relationships bring better service, priority in shortages, ideas for cost and quality improvement and fewer disputes. They also make it easier to resolve problems when they happen, because both sides start from trust and shared facts.

How Aavenir handles it

Obligationflow tracks what both sides committed to in the contract, so reviews rest on evidence, and Onboardingflow gives vendors a self service portal for their details and documents. Both sides see the same facts.

Keep reading

Supplier performance review A supplier performance review is a regular check of how well a supplier delivers against its contract, measured by key...Read more Vendor scorecard A vendor scorecard rates a vendor against agreed measures such as quality, delivery, cost, service and compliance over a set...Read more Vendor management Vendor management covers selecting, onboarding, contracting, monitoring and paying the vendors a company relies on.Read more

Frequently asked questions (FAQ)

Common questions

What is the difference between vendor relationship management and vendor management?

Vendor management covers the full set of activities, from onboarding and contracts to risk and payment. Relationship management focuses on the working relationship and long term value with each vendor. Read about vendor management.

Which vendors need the most relationship effort?

Strategic and critical vendors: those with high spend, high risk or a big effect on your customers. Routine vendors need clear processes more than close relationships. Read about the supply positioning model.

How do you measure a vendor relationship?

Use performance scores, how quickly issues are resolved, dispute counts, joint improvement results and feedback from both sides. Review them regularly with the vendor. Trends over time matter more than any single score. See Obligationflow.

Have a question we have not answered? Ask the Expert

Schedule a demo

See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

Prefer to talk first? Contact the team.