Vendor Relationship Management Training Course

Duration 5 days 10 modules · 33 contact hours
Level Intermediate Certificate on completion
Who attends Procurement Managers, Category Managers and others
Fee from USD 1,100 KSh 95,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 7 Nov 2026 Course code SD-P-073

Before you join: Participants should understand basic procurement processes, contracts, supplier selection and purchase-to-pay controls.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Vendor relationships can fail even when the contract is sound. Service deterioration, unplanned price pressure, weak data, disputed obligations and slow escalation often arise because suppliers receive inconsistent direction or reviews focus only on past KPIs. Procurement teams need a disciplined way to segment vendors, set governance, interpret performance evidence and intervene before problems affect customers, patients, citizens, production or projects.

This course develops the methods used to manage important supplier relationships from onboarding through renewal, improvement or exit. Participants learn to apply the Kraljic Portfolio Matrix, establish governance forums, build supplier scorecards, conduct performance reviews, assess third-party risk and create joint improvement plans. The programme also addresses commercial transparency, supplier innovation, negotiation, dispute resolution, demand management and the data controls required for credible vendor reporting.

Teaching combines practical procurement cases with group analysis of supplier performance data, governance decisions and difficult relationship scenarios. Participants work with realistic examples from public procurement, financial services, manufacturing, infrastructure and outsourced services. They leave with a vendor relationship management toolkit containing reusable templates for segmentation, governance, scorecards, risk review and implementation planning. All participants receive a certificate of completion.

The course is suited to procurement and contract professionals responsible for suppliers after award, as well as operational managers who own supplier performance. It is particularly relevant where supplier failure, dependency, service quality or commercial disputes create material operational exposure.

What you will be able to do

  • Segment vendors using the Kraljic Portfolio Matrix and relationship criteria
  • Design governance structures with defined forums, decision rights and escalation routes
  • Build supplier scorecards using KPIs, service levels and corrective-action evidence
  • Conduct performance reviews that identify root causes and secure accountable commitments
  • Assess supplier risk using registers, financial indicators and continuity controls
  • Apply total cost of ownership and should-cost analysis to supplier discussions
  • Manage negotiation, disputes and recovery plans while protecting working relationships
  • Produce a 90-day vendor relationship management implementation plan

Benefits of attending

For you

  • Lead supplier reviews with clearer agendas, evidence and decision records
  • Identify early warning signs before supplier issues become service failures
  • Challenge price and cost claims using should-cost and total cost methods
  • Handle difficult supplier conversations with structured negotiation and escalation techniques
  • Present a credible vendor relationship management plan to senior stakeholders

For your organisation

  • Earlier intervention on supplier performance, financial health and continuity risks
  • Clearer ownership between procurement, contract owners and operational users
  • More consistent supplier scorecards, governance records and escalation decisions
  • Reduced avoidable cost through demand management, value engineering and gainshare controls
  • Stronger supplier accountability for service recovery, corrective actions and improvement commitments

Course modules

10 modules over 5 days

Participants can define the purpose, scope and accountabilities of vendor relationship management.

  • Supplier relationship management purpose, value drivers, and procurement operating model
  • Kraljic matrix plots supply risk against profit impact
  • Stakeholder mapping identifies budget holders, users, technical owners, and approvers
  • Supplier lifecycle stages from qualification through renewal, exit, and transition
  • RACI assigns accountabilities between procurement, contract owners, and business users
  • Relationship objectives linked to category plans, contracts, and service outcomes

Participants can segment suppliers and select an appropriate relationship approach for each segment.

  • Segmentation criteria combine spend, criticality, risk exposure, dependency, and innovation potential
  • Supplier positioning map prioritises relationship intensity and governance investment
  • Power-dependence analysis identifies concentration, switching barriers, and negotiation constraints
  • Portfolio strategies set transactional, managed, collaborative, and strategic relationship approaches
  • Stakeholder expectations translated into supplier-specific relationship objectives and success measures
  • Account plans align supplier priorities with category strategy and demand forecasts

Participants can establish supplier governance that supports timely decisions and effective escalation.

  • Governance charters define meeting cadence, membership, decisions, and escalation routes
  • Three-tier reviews separate operational, tactical, and executive performance discussions
  • Terms of reference establish quorum, minutes, actions, and decision rights
  • Joint business plans convert priorities into owners, milestones, and benefits
  • Escalation matrix sets response times, authority levels, and communication channels
  • Action logs use due dates, evidence, and closure acceptance criteria

Participants can measure supplier performance and direct corrective improvement activity.

  • Contract obligations converted into measurable service levels and acceptance criteria
  • SMART KPIs balance cost, quality, delivery, service, and sustainability
  • Service-level agreements distinguish targets, thresholds, remedies, and reporting responsibilities
  • Balanced scorecards combine leading indicators with lagging performance measures
  • Root-cause analysis uses five whys, fishbone diagrams, and corrective actions
  • Performance reviews separate data validation, diagnosis, commitments, and follow-up
  • Supplier scorecards document trends, exceptions, owners, and improvement deadlines

Participants can evaluate supplier cost drivers and manage commercial value throughout the contract.

  • Should-cost analysis tests price movements against labour, materials, overheads, and margins
  • Open-book accounting defines cost visibility, audit rights, and confidentiality boundaries
  • Total cost of ownership captures acquisition, operation, failure, and exit costs
  • Gainshare mechanisms allocate verified savings using baselines, thresholds, and formulas
  • Volume commitments and demand forecasts reduce supplier capacity and pricing uncertainty
  • Invoice dispute data reveals recurring commercial controls and contract interpretation failures

Participants can identify, assess and treat risks arising from supplier relationships.

  • Supplier risk registers record likelihood, impact, controls, owners, and review dates
  • Financial health assessment examines liquidity, profitability, debt, and cash conversion
  • Business continuity plans test alternate sites, inventory buffers, and recovery times
  • Third-party due diligence covers sanctions, conflicts, data protection, and modern slavery
  • ISO 31000 treatment options guide avoidance, reduction, transfer, and acceptance
  • Early-warning indicators trigger intervention before service, quality, or solvency failure

Participants can structure supplier collaboration around measurable operational and commercial value.

  • Joint value creation identifies waste, demand variability, and process handoffs
  • Supplier innovation funnels screen ideas, business cases, pilots, and adoption
  • Value engineering reviews function, specification, cost drivers, and alternatives
  • Design-to-cost workshops reconcile user requirements with affordability and manufacturability
  • Demand management reduces unnecessary consumption through specifications, standards, and approvals
  • Benefits registers assign baselines, financial owners, validation rules, and timing

Participants can manage commercial tension, disputes and recovery without losing control of supplier obligations.

  • Interest-based negotiation separates positions, interests, options, and objective criteria
  • BATNA analysis establishes walk-away points and credible alternative supply options
  • Negotiation mandates define authority, concessions, red lines, and approval limits
  • Dispute resolution clauses specify notice, mediation, adjudication, and arbitration steps
  • Fact-based conversations address missed commitments without damaging future cooperation
  • Corrective action plans distinguish containment, root cause, recurrence prevention, and verification

Participants can use reliable supplier data to support reporting, controls and management action.

  • Spend analysis reveals supplier concentration, maverick buying, and addressable improvement opportunities
  • Vendor master data controls prevent duplicates, fraud exposure, and reporting errors
  • Dashboard design links source data, KPI definitions, thresholds, and action owners
  • Data quality checks test completeness, consistency, timeliness, and traceability
  • Supplier portals structure document exchange, scorecards, corrective actions, and approvals
  • Information-sharing protocols protect confidential pricing, personal data, and intellectual property

Participants can create a practical plan for introducing or improving vendor relationship management.

  • Relationship management maturity assessment identifies priority gaps in governance and capability
  • 90-day implementation plans sequence stakeholders, milestones, resources, and dependencies
  • Change impact assessment anticipates role changes, resistance, training, and communications
  • Pilot selection tests governance and scorecards with suitable supplier relationships
  • Success measures track adoption, performance improvement, risk reduction, and value delivered
  • Personal application plans define immediate actions, sponsors, evidence, and review dates

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Supplier segmentation and relationship strategy template
  2. Three-tier supplier governance charter
  3. Supplier performance scorecard template
  4. Supplier risk register and early-warning indicator checklist
  5. Joint business plan and corrective-action tracker
  6. 90-day vendor relationship management implementation plan

Who should attend

  • Procurement Managers — responsible for supplier performance after contract award
  • Category Managers — need relationship strategies for critical supply markets
  • Contract Managers — manage obligations, reviews, remedies and renewals
  • Supplier Relationship Managers — require consistent governance and improvement methods
  • Operations Managers — depend on suppliers meeting service, quality and delivery commitments
  • Vendor Risk Managers — need supplier evidence linked to operational risk controls

Skills and tools covered

Supplier segmentationGovernance designPerformance managementThird-party riskCommercial analysisSupplier negotiation

Tools and standards

Kraljic Portfolio Matrix, RACI matrix, Balanced Scorecard, ISO 31000

How the course runs

Training methodology

Instruction combines short expert briefings with case work, group exercises, performance-review simulations and application planning. Participants analyse supplier scorecards, contract obligations, risk signals and commercial data before deciding what action to take. Facilitated discussions examine common tensions between procurement, operational teams and suppliers. Scenarios include service failure, dependency risk, price challenges, disputed KPIs and recovery planning. Trainers adapt cases and examples to the cohort's sector, supplier base and operating model.

Requirements and prerequisites

Participants should understand basic procurement processes, contracts, supplier selection and purchase-to-pay controls. Experience working with suppliers, service providers or outsourced operations is expected, whether in procurement, operations, finance, technology or project delivery. Familiarity with KPIs and contract terms is helpful because the course uses performance and commercial examples. No prior supplier relationship management qualification is required. Participants do not need advanced financial modelling skills, legal training or experience using a particular procurement system.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants should have basic procurement or supplier-facing experience and understand how contracts and KPIs are used. Prior specialist experience in supplier relationship management is not required.

Participants may bring an anonymised supplier scorecard, contract schedule or relationship issue they want to examine. No mandatory pre-reading or software is required.

It is designed for procurement, category, contract, supplier relationship, operations and vendor risk professionals. It suits people managing suppliers after award rather than conducting only sourcing events.

Contract management focuses on administering obligations and legal terms, while strategic sourcing focuses on market analysis and supplier selection. This course concentrates on managing supplier performance, governance, risk and value after the supplier is appointed.

Participants can use the segmentation, governance, scorecard and risk templates with an existing supplier relationship. The final implementation plan identifies actions, owners, evidence and review dates for the first 90 days.

The course runs for five training days, normally 08:30-16:30, with about 6.5 contact hours each day. Time is divided between instructor input, cases, group work, simulations and application planning across ten teaching modules.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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