Nowadays increasing in complexity of product/service manufacturing, implanting outsourcing and deal worldwide have led to delay in daily activities of supply chain industry. This study examines the risk that may occurs from vendor side and try to find system that manage dealing with vendor called Vendor Management System, within Occidental of Oman.  This paper will start to provide a review of risk definition, defining a supply chain risk and so on. Moreover, it has cover supply chain risk management, supply chain risk identification as well as supply chain risk monitoring. Not only that but also, it will introduce how to reduce risk in supply chain. Furthermore, there are a number of classifications of type risk which identifying from OXY. The most importunately is the second part of this paper which will introduce Vendor Management System. It will provide general description about mentioned system. Then, it will move to analyze the survey which was distributed among OXY staffs and how this system will help to reduce the risk of supplier and find abetter way to evaluated them automatically. Conclusions and recommendation will be drawn from the finding that research will offer.