Abstract

This study explores the critical role of vendor management in enhancing supply chain performance, focusing on the strategies, challenges, and best practices that influence organizational outcomes. The main objectives were to examine the impact of vendor selection and evaluation processes, assess the integration of technology in performance monitoring, and investigate the adoption of ethical and sustainable practices. A qualitative approach was used, combining literature review and case study analysis, to gain insights into current trends and practices in vendor management. Key findings reveal that effective vendor selection, supported by clear performance metrics, is essential for optimizing operational efficiency. Technology, particularly digital tools for real-time monitoring and data analytics, is a powerful enabler of improved vendor performance and collaboration. Furthermore, ethical and sustainable vendor practices have become central to long-term supply chain success, with organizations increasingly emphasizing responsible sourcing and transparency. However, challenges such as vendor conflicts, cultural differences, and technological barriers were identified as significant obstacles. The study concludes that strategic, technology-driven, and ethically grounded vendor management practices are key to fostering long-term, mutually beneficial relationships. Recommendations for future research include exploring the role of emerging technologies and addressing cross-cultural challenges in global supply chains. The findings provide valuable insights for both practitioners and policymakers seeking to enhance vendor management practices and improve supply chain resilience.