Compose a 2750 words assignment on vendor management in freight forwarding companies. Needs to be plagiarism free! Thus the clients are obviated from the rigors and tension associated with the movement of goods to various destinations around the globe.

The research topic for the study is cost reduction through a multi-vendor approach in freight forwarding companies. It is a study analysis of cost reduction strategies and whether the multiple-vendor approach is applicable for cost reduction. The research question is whether the multiple vendor systems in freight forwarding companies is effective and the challenges faced by the system.

Research Purpose: This research on vendor management in freight forwarding companies is aimed at getting a clear understanding of vendor management and its implication on freight forwarding companies.

Vendor management: In the function of establishing the goals the vendor managers are required to utilize their prospect to achieve the goals by means of third party companies. In selecting the vendors they have to keep maximum care while selecting the vendors who should be capable of achieving optimum operational results. In managing vendors, their performances have to be monitored on a periodical basis and adequate feedbacks have to be provided to develop vendors. The operational performance of the vendor has to be consistent with statistical standards. As an outsourcing relationship management, the selection of efficient drivers is crucial for effective performance. “Most outsourcing contracts are priced by vendors in a way that even if the vendor paid the maximum non-performance penalties they are likely to be still profitable. So the conundrum that vendor managers face is how to influence profitable vendors to meet performance objectives when reaching these levels is likely to be less profitable in the near term.” (Tony 2007).

The freight forwarding industry is one of the booming industry sectors in supply chain management.

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