WEEK 1

1. Vendor Management from the LSP perspective

Unlike client-side vendor management, which typically focus on managing LSPs, this course explicitly takes a vendor-side perspective. In other words, we are learning how an LSP manages its own vendors, including freelancers, subcontractors, and occasionally other LSPs.

An LSP often acts as both a service provider and a buyer at the same time. While responding to client needs, the LSP must also procure linguistic and technical services downstream. Vendor management, therefore, is not just operational coordination but a core business function that directly affects cost, quality, scalability, and client trust.

This represents a clear shift from the client-side vendor management perspective that I am more familiar with, and it requires rethinking many decisions through a new set of logic and assumptions. I found this change in perspective both challenging and interesting.

2. The Procurement Cycle

The need often originates from the client, not the LSP. The LSP then interprets that need, evaluates whether it can be fulfilled in-house or in another forms, and decides whether external resources are required. Only after this internal evaluation does procurement truly begin.

I think this reinforced an important mindset shift. Vendor management is not about defaulting to outsourcing. It starts with asking the right questions internally before spending money externally. This distinction is critical.

The approval step forces accountability. It requires someone to justify why an external vendor is necessary, whether the cost makes sense, and whether alternatives have been considered. This step protects both financial health and working efficiency.

On vendor-side, especially when working with freelancers, relationships are often task-driven rather than relational. Formal contracts may exist, but sometimes the engagement relies on simpler agreements, email confirmations, or established trust. This does not mean structure is optional. Even in informal setups, there must be clarity around scope, deadlines, rates, and payment expectations.

The final stages of the procurement cycle focus on delivery and review. Once work is delivered, the LSP must assess whether the outcome actually solved the original problem. Choosing to work with the same vendors again offers benefits such as consistency, reduced onboarding time, and potentially better pricing. However, renewal should be a deliberate choice based on performance, not convenience.