In today’s complex business environment, vendors play a key role in the success of your organization. However, relying on vendors brings added risk. Managing these vital relationships and risks is important to ensure third-party products and services comply with applicable laws, regulations, and security best practices.
Many organizations simply rely on filing cabinets, spreadsheets, and word processing software to manage their vendor relationships. However, these methods are time consuming and no longer meet growing requirements from auditors, government agencies, customers, and shareholders. Below are few reasons and benefits from comprehensive Vendor Management software.
1. Increases Efficiency: Total cost will be reduced by identifying and focusing on certain areas to save money and resulting in fine-tuning the procurement process.
2. Increases Performance: Vendor’s performance will be enhanced by the ongoing monitoring and improvement in processes, communications and vendor interaction.
3. Increases Transparency: Improved information flow between the purchaser and the vendor will increase management information to both organizations. It will also allow the purchasing organization to cut inventory costs by optimal purchasing.
4. Greater Visibility: Regular review of your vendor will mitigate service failures. If problems do occur, the solutions provide comprehensive on-time notifications of critical expiration and due dates.
5. Mitigating Risk: Conducting Risk Assessment interviews with vendor owners as a preventive measure. Performing risk analysis helps reduce the likelihood of needing to change vendors, a process that many viewed as time consuming.
6. Guaranteed Compliance: A comprehensive Vendor Management solution will ensure that any legal obligations are met (NCUA, FDIC, OTC, OCC, etc.).