Suppliers (Vendors) - VRM Is Future.
Don’t you hate it when people have ideas that are so simple but great and you wished you had come up with the concept? The other day I came across such an idea. I was listening to an I.T Conversation podcast called “Managing Vendors Before They Manage You” (http://www.itconversations.com/shows/detail1676.html) they were talking about a concept called VRM (vendor relationship management).
The number one pet peeve EduGeek.net members talk about is suppliers ‘cold calling’ them. Suppliers say “but how can we as a company get on your list of suppliers any other way?” But this concept changes everything as we go to them instead, not the usual ringing around the suppliers but instead they look at a feed that has what you are currently looking for posted on it.
The idea from blogger Doc Searls (http://doc.weblogs.com/) has been around in simple form before with mass emails to supplier lists and closed bidding systems etc but this concept opens it to every supplier.
While Doc is working on a new system for VRM (http://cyber.law.harvard.edu/projectvrm/Main_Page) the basis of this is everyone has their own API in effect. This does involve suppliers getting thier CRM systems to interact with this supposed API but that takes time and that is what Doc is working on. In the mean time we as customers can implement this very easily on a more simple level.
We have the technology already, it’s called blogs. I am currently setting up a blog so suppliers at work can subscribe to an RSS feed and it provides them with information on what I want.
But not everyone uses RSS so the fact that most blogs have the function to view posts as web pages, plus the ability to email out new posts to people means you have that angle covered. The more I read on this concept the more it addresses some of the major problems we as customers have and suppliers have with customers.
Filed under: Bloggers, EduGeek, Suppliers, Uncategorized, VRM, Vendors, technology
…then you just click a button, and the order gets processed and sent to the successful supplier (who has of course provided all needed details - vat no. etc), a record of this is logged for you to peruse past orders - then during the summer of 2020 the finance system is tied in so that performace feedback frm the finance team is used to rate supliers.
Can always hope but just removing need for suppliers to cold call.
That has got me sold on the idea….
Russ
Russ,
A bit of quick clarification, as we start turning VRM from a concept to a reality…
I think what we are actually seeing is more of allowing people a way to post a personal digital RFP… which will require some sort of shared API. Interestingly, corporations could also use a digital RFP, since it is all the same to the marketspace. But that wouldn’t be called a personal RFP by that point, just a digital one.
You probaly know that Doc already used his blog to make a successful VRM gesture for a new cell phone. However, blogs don’t allow privacy without a lot of effort… who wants to manage their own signup and access control lists? And for many purchasing decisions, it is critical to have some privacy. Imagine buying a birthday gift or business critical component using your blog. Do you really want the recipient to find out about it in the first case? And there’s a good chance you don’t want your competitors to know what you are buying in the second case.
Suffice to say, blogs are weak on the relationship part of VRM, although they make a good announcement mechanism. Especially with services like Technorati logging new posts in real-time. I expect some sort of architecture starting like blogs + technorati makes a lot of sense for this space.
-joe
Hi Joe
Thanks for the comment I agree and posting it on blog is not a vrm wasn’t trying to say that will do follow up post.
Making blog do the work is halfway house till you and Doc get some working concepts up. Luckly we are in industry (education) which dosn’t have to worry too much about competition.
Till something more concrete can move to have private blog which I control access to (anyway system would be beta and would go out to regular suppliers for now) is just halfway house will do a follow up to explain that better.
To be fair in our industry being in UK means anyone could request just about any information and we have to give it under various freedom of information laws.