Vendor Management
What is Vendor Management?
The coordination and oversight of third-party service providers, such as relocation companies, immigration counsel, and tax advisors, that support an organization's global mobility program.
Vendor management is a critical capability for global mobility teams, who typically work with a diverse ecosystem of service providers across multiple countries and disciplines. Common vendors include relocation management companies (RMCs), immigration law firms, tax advisory firms, destination service providers, language training companies, and household goods movers.
Effective vendor management involves selecting the right partners through competitive bidding, negotiating favorable terms and service level agreements (SLAs), monitoring performance against KPIs, and conducting regular business reviews. Mobility technology platforms can facilitate vendor management by automating workflows, tracking service delivery, and consolidating performance data.
Organizations should also evaluate their vendor model holistically, considering whether a single global RMC, a regional model, or a best-of-breed approach best fits their needs and budget. Regular vendor audits and employee feedback surveys help ensure quality and identify areas for improvement.
Related Terms
Mobility Program
The structured set of policies, processes, vendors, and technology an organization uses to manage employee moves and international assignments at scale.
Relocation Package
A bundle of benefits and allowances provided by an employer to support an employee moving to a new location, which may include moving expenses, temporary housing, travel, and settling-in support.
Mobility Technology (Mobility Tech)
Software platforms and digital tools used to automate, track, and manage international assignments, including initiation workflows, compliance alerts, cost projections, and assignee experience.