What refers to the practice of overseeing third-party providers to enhance cost efficiency?

Vendor management is a critical practice in business environments focused on overseeing third-party providers to optimize cost efficiency and improve service delivery. This process encompasses various activities, including selecting vendors, negotiating contracts, monitoring vendor performance, and fostering relationships.

By effectively managing vendors, companies can ensure that they are getting the best value for their investments, maintaining quality standards, and mitigating risks associated with outsourcing. This practice is essential as it aligns vendor services with the company’s strategic objectives, which can lead to overall improved operational efficiency and cost savings.

On the other hand, supplier integration, contract negotiation, and quality assurance, while important aspects of procurement and supply chain management, do not specifically capture the comprehensive oversight and relationship management that defines vendor management. Supplier integration focuses more onhow suppliers are incorporated into the company's operations. Contract negotiation involves establishing terms and agreements with suppliers, and quality assurance deals predominantly with ensuring that products or services meet specific standards. These functions are components of vendor management but do not encompass the broader practice as a whole.