Vendor management and its requirements have grown significantly over the past several years. There is now increased attention to subservice providers (fourth parties) and expectations around thorough due diligence, to the point of being invasive. What used to be “nice to have” is now “must do”.
We try to keep up, but it’s not always smooth sailing. It’s hard to have the time and resources needed to accomplish the large task list at hand. So, what’s a solution? Let’s go through that now.
Excel Is Not Suitable for Vendor Management Anymore
No longer is it sufficient to manage hundreds, perhaps thousands, of third parties using Excel or a similar non-automated tool. That’s where software steps in.
Sophisticated tools are now available that allow for automated processes, robust documentation, scheduling reminders and superb reporting. The ideal solution is highly intuitive workflow-driven software tools backed by a team of industry experts.
And because a top 10 list just isn’t good enough for us or for you – here are 11 advantages of using vendor management software. Please consider these carefully as you grow and mature your vendor management program:
- It gives you cloud storage for all things vendor related – Unlimited storage and less chance for loss of critical data if your facility has a business disruption.
- You centralize your vendor management program across multiple lines of business – An industry best practice is to centralize vendor management – even if that means still relying on the lines of business to interact with vendors. A centralized model allows you to standardize terms, practices and expectations.
- Your due diligence and ongoing monitoring tasks are automated and streamlined – No more missed dates and no more confusing and disparate practices – a software solution will help to automate and create easy to replicate processes.
- You have an improved area for document storage – Filing cabinets are going the way of the do-do bird – you need to take advantage of the power of network computing.
- The likelihood of maintaining a disciplined approach to vendor management is increased dramatically – By using software, your processes will become better organized, more routine and regimented.
- It provides cost management for contracts – Vendor management software can help you easily manage contracts, view key terms and never miss renewal notification or termination steps.
- Reporting needed for exams is easy – Rather than relying on ad-hoc reports, creating a highly customized standard set of reports that clearly identify areas of concern will help you meet your board’s and examiner's needs for accurate and comprehensive information.
- Errors are reduced – Less manual processes mean fewer human errors.
- Key dates are not missed – Whether it’s contract dates, due diligence deadlines, periodic risk assessments or ongoing monitoring requirements, a software solution can leverage automated scheduling so you’re never at risk of being overdue.
- There’s less likelihood of overlooking critical information – Automated solutions can track crucial events so that you’re not at risk of losing sight of key data.
- Efficiency is increased dramatically – The precision and perhaps the best argument for an automated solution is helping to close the gaps of juggling manual tasks by creating a process driven workflow that is scalable and reliable.
Leveraging vendor management software can help you create a near flawless third party risk program for your institution.
And, so that you can buy software, download our infographic on reasons for a vendor management budget.