• April 5, 2021

Understanding vendor management best practices

When it comes to ensuring a high level of vendor productivity, proactive management plays a crucial role. DoD contractors working with third-party government IT services providers should develop a clear line for communication and ensure DFARS, CMMC, FISMA, and NIST 800 171 standards are adequately maintained within the vendor supply chain. Government contractors should create and maintain Key Performance Indicators or KPIs that are easy to access and understand.

In this blog, we have covered some essential Vendor Management Best Practices.


Communication is one of the fundamental requirements of any vendor management best practices. Without a proper communication channel, one can’t have a firm understanding of the vendor’s outlook on operations and compliance.

Just assuming that your vendor or associates also follow the same cybersecurity standards and philosophies can create irreconcilable problems. When dealing with data management and federal IT solutions providing companies, one must be clear about the compliance and standard cybersecurity frameworks.

You must communicate to your vendors and contractors that you are committed to securing and safeguarding every element of your IT infrastructure, data, and information.


Risk assessment is another vital element of vendor relationship management. You must determine and identify all risks that can arise within your vendor supply chain. When conducting risk assessment, determine risks that can threaten your business, your vendor’s business, and your products and services.

Although it doesn’t mean that your contract will have troubles, inconsistency in forecasting risks can put your business in a tough spot. Moreover, relying on your vendor’s cybersecurity framework can make your business vulnerable to cybersecurity breaches.

The best approach for tackling such issues is to create a shared file suit where you can discuss potential problems in the contract and devise a strategy to address them.


Compatibility is crucial in any vendor relationship management. If the vendor or their services are not compatible with your organization, there is no way the relationship will work out. With solid teamwork, you can create an ecosystem for positive workflow. Ensure you understand your vendors’ plan of action and strategies well and can review them timely.  


Your collaborative strategy should be focused on ensuring performance standards. Whoever you are working with, make sure they are liable for giving the best performance. Having well-defined milestones and goals will help keep both you and the vendor’s performance in check.


The problem of data management is turning into a significant concern for organizations that deal with sensitive data. Since transactions and records have become digital, the risk of losing data is becoming more prominent. Moreover, the legal and financial consequences of cyber-attacks and security breaches have also become a pain point for organizations.

Third-party data breach is becoming increasingly common since not all vendors are governed by cybersecurity protocols. The best approach to mitigating such risk is to integrate your cybersecurity standards with your vendors before committing to working together.


When looking for potential vendors, you should focus on how they can add value to your organization in the long run. Look for vendors who can complement your team and products and enhance productivity without compromising your data’s security.