Vendor Management Hierarchy

A vendor is a supplier in the supply chain management system and is a person who is responsible for supplying goods and services to a company or any other individual.  A vendor is also generally the manufacturer of products which he/she sells.

Every vendor functions with a group of people of the supply chain management and thus a hierarchical organization is followed to run the business. In this organization, the person at the topmost position has the highest responsibility and power as compared to other ones below him and so on. The following is a detailed vendor management hierarchy for your reference and help.

vendor management hierarchy

The Top/Strategic Level

The topmost level of work or management in a vendor management hierarchy is comprised of those officials who hold the main decision making power and set goals and objectives for the company. This level of people are associated with ordering of materials, production, manufacturing and transportation etc. the following are the main job positions within this level:

  • Managing director-owner of the company
  • Finance manager
  • Distribution managerial
  • Maintenance Manager
  • Quality Analyst
  • Manager, Inventory

The main duties of these officials is to meet the goals set by the main vendor and do so in the most cost effective manner.

The Middle/Tactical Level

The next level in a vendor management hierarchy is the middle level or that level where all tactical decisions are made. These individuals are professionals who handle the planning of production of the materials as per the requirement in the market. They work on the main rules and goals set by the topmost level in the hierarchy and also make decisions regarding demand forecasts and as per trend analysis. The following are the main job positions lying within this category.

  • Production Planner
  • Research Executive
  • Material Resource Planning or
  • Technical Supervisor
  • Project Planning in-charge
  • Transportation Supervisor
  • Accounts manager
  • Warehouse manager
  • Technical assistant

The Executive/Operational Level

The executive level falls on the bottom of the pyramid of the hierarchy structure within a vendor management system. The employees working at this particular level are important to the entire chain as they execute all the tasks planned and set by the other two levels. They use their education, knowledge and skills to handle day to day functioning of the company.

  • Operations Executive
  • Logistics Executive
  • Warehouse Supervisor
  • Maintenance Executive
  • Tech Support Executive
  • Secretary
  • Warehouse workers
  • Assistant managers
  • Technical trainees
  • Management trainees
  • Quality control assistant manager
  • Sales executive