A key trait of any high-performing procurement organization is visibility.
Vendor Management Visibility
Supplier performance data is critical to being able to measure and manage both supplier and contractor performance management.
An organization’s approach to VRM can significantly affect its ability to achieve its goals. There is a greater need to understand the risks posed by vendors as well as fourth parties, while also keeping pace with regulatory changes. Technology plays an important role in this effort by helping companies map vendor risks to the associated regulations, controls, internal stakeholders, and vendors, thereby improving risk transparency and accountability. It helps ensure that companies have all the information they need to meet the demands of a changing regulatory environment. And finally, it streamlines the flow of vendor risk and compliance data, so that the right information reaches the right stakeholders at the right time.
Companies are increasingly focusing on strengthening VRM through best practices such as:
- – Effective vendor selection process
- – Streamlined due diligence and continued oversight
- – Structured vendor risk assessment approach
- – Efficient vendor performance monitoring
- – Disciplined vendor governance framework
Technology embedded with these best practices can help companies manage vendor networks, associated risks, and compliance requirements.
Here are some of the reasons why a robust Vendor Management Solution should be a top priority for any business:
- – Optimizes VRM processes
- – Consolidates vendor information
- – Centralizes contract management
- – Facilitates early detection and mitigation of risk
- – Makes Business Resilient
- – Enables Vendor Evaluation and Training
- – Provides robust analytics and reporting
The best procurement organizations are intently focused on creating value within their suppliers and vendors, and they are very good at measuring this value. Data-driven decisions have long been critical to achieving quality improvements, yet organizations struggle to make informed and timely decisions due to a lack of visibility. As supplier networks become more complex and as vendor partnerships expand, complete vendor/supplier visibility has grown as a strategic priority.
Manufacturers with poor visibility into supplier performance have a median supplier defect rate more than double the remainder of the population, LNS Research found.
The findings highlight a clear and significant need for automation tools to achieve end-to-end visibility, according to MasterControl’s Terrance Holbrook, a senior product manager with 20 years of industry experience in manufacturing fields.
VENDOR MANAGEMENT SOLUTIONS
Our Vendor Management Solution (VMS) is a discipline that enables businesses to not only cut costs but also: control expenses, drive service excellence and mitigate risks…while gaining increased visibility and value from their vendors. Through LIMITLESS’s on-line software overall vendor management, as well as – vendor expense management, is accomplished by giving you absolute visibility into your vendors and spend. No matter what the vendor or type of service they provide – companies can have a comprehensive view into their: services, contracts, rates, terms, conditions and spends through this sophisticated web-based solution.
If you have questions about any of our VMS benefits contact us today at 866-504-4050 or email LIMITLESS at email@example.com to learn more about our Vendor Management Solutions.