Key Responsibilities and Required Skills for a Vendor Research Director

🎯 Role Definition

The Vendor Research Director is a strategic leadership position responsible for establishing and leading the organization's vendor intelligence and market research function. This individual provides critical insights that shape the company's sourcing, procurement, and third-party risk management strategies. By leading a team of analysts, the Director ensures the business can identify, evaluate, and select the best possible partners to meet its strategic objectives, drive innovation, and mitigate supply chain risks. This role serves as the central hub of market and vendor knowledge, enabling informed, data-driven decision-making across all business units that rely on external suppliers and partners.

📈 Career Progression

Typical Career Path

Entry Point From:

Senior Manager, Strategic Sourcing
Market Intelligence Manager
Senior Procurement or Category Manager
Third-Party Risk Management Lead

Advancement To:

Vice President (VP) of Procurement
Head of Global Sourcing
Chief Procurement Officer (CPO)
Vice President (VP) of Supply Chain Strategy

Lateral Moves:

Director of Strategic Sourcing
Director of Procurement Operations
Director of Enterprise Risk Management

Core Responsibilities

Primary Functions

Develop and execute a comprehensive, forward-looking vendor research and market intelligence strategy that directly supports the company's long-term business goals and procurement objectives.
Lead, mentor, and develop a high-performing team of research analysts, setting clear objectives and fostering a culture of curiosity, analytical rigor, and strategic insight.
Establish and govern the formal processes for identifying, evaluating, and qualifying new potential vendors, suppliers, and technology partners across diverse and complex spending categories.
Oversee the entire due diligence lifecycle for prospective strategic partners, encompassing in-depth financial stability assessments, operational capability reviews, security posture analysis, and reputational risk checks.
g-Build and maintain a centralized, dynamic vendor intelligence repository or database, ensuring the data is accurate, current, and readily accessible to key stakeholders across the enterprise.
Conduct continuous, proactive market scanning and competitive landscaping to identify emerging industry trends, disruptive technologies, and potential supply chain vulnerabilities or opportunities.
Partner with senior leadership and business unit heads to understand njihovih strategic priorities and translate them into targeted research initiatives and actionable sourcing recommendations.
Direct the creation of detailed vendor profiles, comparative scorecards, and executive-level reports that provide clear, data-driven rationale for vendor selection and partnership decisions.
Define and manage the Key Performance Indicators (KPIs) for the vendor research function, tracking metrics related to research quality, risk identification, cost avoidance, and stakeholder satisfaction.
Chair or be a key member of the vendor selection or procurement governance committee, presenting research findings and providing expert recommendations on strategic sourcing decisions.
Design and implement robust frameworks for ongoing vendor performance monitoring and risk assessment, ensuring that third-party relationships continue to deliver value and remain compliant.
Cultivate and manage relationships with external market intelligence providers, research firms (like Gartner, Forrester), and industry experts to augment in-house research capabilities.
Standardize research methodologies and reporting formats to ensure consistency, reliability, and scalability of the intelligence function as the organization grows.
Analyze the financial health and viability of key incumbent and potential vendors, interpreting financial statements and market signals to preemptively identify partnership risks.
Collaborate closely with Legal, Compliance, and Information Security teams to ensure that all vendor research and onboarding activities adhere to regulatory requirements and internal policies.
Drive the adoption of advanced analytics and research tools to enhance the team's ability to extract meaningful insights from large, unstructured datasets.
Prepare and deliver compelling presentations to the executive team and Board of Directors on market dynamics, competitive threats, and strategic vendor-related opportunities.
Lead complex, multi-stage negotiation preparations by arming the sourcing team with deep insights into a vendor's market position, cost structure, and negotiation levers.
Act as the organization's primary subject matter expert on vendor landscapes, market intelligence, and sourcing best practices.
Foster a proactive, intelligence-led approach to procurement, shifting the organization from reactive purchasing to strategic, predictive sourcing.

Secondary Functions

Support ad-hoc strategic projects and M&A activities by providing targeted market and vendor due diligence.
Contribute to the evolution of the organization's broader procurement and third-party risk management strategy and roadmap.
Collaborate with business units to translate their strategic needs into well-defined research and sourcing requirements.
Champion knowledge-sharing and cross-functional training to elevate the level of commercial and market acumen across the company.

Required Skills & Competencies

Hard Skills (Technical)

Strategic Sourcing & Category Management: Deep expertise in the principles and execution of strategic sourcing, with the ability to analyze complex spend categories.
Vendor Risk Management (VRM): Proficient in designing and implementing frameworks for assessing and mitigating third-party risks, including financial, operational, and cybersecurity.
Market Intelligence & Research Methodologies: Mastery of primary and secondary research techniques and experience with market intelligence platforms (e.g., Gartner, Forrester, IBISWorld).
Financial Analysis: Ability to read and interpret corporate financial statements (P&L, Balance Sheet, Cash Flow) to assess a vendor's financial health.
Contract Analysis: Strong understanding of commercial contract terms, SLAs, and key clauses to inform negotiation strategy.
Data Analysis & Visualization: Proficiency in using tools like Excel, Tableau, or Power BI to analyze data and present findings in a clear, compelling manner.
Procurement Software Knowledge: Familiarity with modern procurement suites (e.g., Coupa, Ariba) and supplier information management (SIM) systems.

Soft Skills

Strategic and Analytical Thinking: The ability to see the bigger picture, connect disparate data points, and derive strategic insights from complex information.
Leadership & Team Mentorship: Proven ability to lead, inspire, and develop a team of analytical professionals.
Stakeholder Management & Influence: Exceptional skill in building relationships, managing expectations, and influencing senior-level executives and cross-functional partners.
Communication & Presentation Skills: World-class ability to synthesize complex information and present it clearly and persuasively to diverse audiences, from analysts to the C-suite.
Commercial Acumen: A strong business-oriented mindset with a deep understanding of market dynamics, business models, and what drives commercial value.
Problem-Solving & Decision-Making: A decisive and solutions-oriented approach to tackling ambiguous and complex business challenges.

Education & Experience

Educational Background

Minimum Education:

Bachelor's Degree in a relevant field.

Preferred Education:

Master of Business Administration (MBA) or a Master's degree in a related discipline.

Relevant Fields of Study:

Business Administration
Supply Chain Management
Finance or Economics
Market Research

Experience Requirements

Typical Experience Range:

10-15+ years of progressive experience in procurement, strategic sourcing, or a related field.

Preferred:

A minimum of 5-7 years in a leadership role with direct people management responsibilities. Extensive, demonstrable experience in building and managing a market research, competitive intelligence, or vendor management function from the ground up is highly advantageous. The ideal candidate will have a proven track record of influencing major sourcing decisions and contributing to tangible business outcomes, such as cost savings, risk mitigation, and innovation through strategic partnerships. Experience in a global, matrixed organization is strongly preferred.