Vendor management and the myriad of ensuing requirements have increased significantly over the past several years. There’s now increased attention to fourth party vendors and expectations around thorough due diligence, to the point of being invasive. What used to be “nice to have” is now “must have”.
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 can you do? Let’s go through that now.
Excel Is Not Suitable for Vendor Management Anymore
No longer does it suffice to manage hundreds, maybe even thousands, of vendors using Excel or a similar non-automated tool – just imagine if regulatory guidance changes and you need to go back and open up hundreds of Excel spreadsheets just to change a few cells in each one… Argh! That’s where vendor oversight 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 subject matter experts.
And, because a top 10 list just isn’t good enough for us or for you – here are 12 advantages of using vendor management oversight software.
Advantages of Vendor Oversight Software
Please consider these carefully as you grow and mature your vendor management program:
- It gives you cloud storage for all items vendor related – There’s 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 to ensure that you are adhering to the standards for regulatory guidance.
- Your due diligence and ongoing monitoring tasks are automated and efficient – No more missed dates and no more confusing and disparate practices among business units – a software solution will help to automate and create easy to replicate processes. And, as processes change, the workflows can change.
- You have an improved area for document storage – Filing cabinets are going the way of the dodo bird – you need to take advantage of the power of network computing.
- The likelihood of maintaining a more consistent 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 oversight software can help you easily manage contracts, view key terms and never miss renewal notification or termination steps.
- Reporting needed for exams is easy and comprehensive – 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 minimized – 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 vendor oversight 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.
- Overseeing your team is made easy – You’ll gain insight into who has completed what with a date stamp, as well as what’s upcoming, all in easy-to-view dashboards.
Leveraging vendor oversight software can help you create a near flawless third party risk program for your organization.
To learn more about how software can help you, talk to one of our vendor management experts.
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