Vendor Management Solutions – Features

Vendor Risk Management

Vendor risk management (VRM) is the process of ensuring that the use of service providers and IT suppliers does not create an unacceptable potential for business disruption or a negative impact on business performance.

Benefits of Vendor Risk Management

Inventory Control

Inventory control or stock control can be broadly defined as “the activity of checking a shop’s stock”. More specifically inventory control may refer to: In operations management, logistics and supply chain management, the technological system and the programmed software necessary for managing inventory.

Cost Reduction

Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. Every decision in the product development process affects cost.

Benchmarking (Rates-Terms)

Benchmarking is the process of comparing your own organization, operations, or processes against other organizations in your industry or in the broader marketplace. Benchmarking can be applied against any product, process, function or approach in business. Common focal points for benchmarking initiatives include: measures of time, quality, cost and effectiveness and customer satisfaction.

Compliance Tracking

Compliance used to be a hands-on, involved project comprised of endless spreadsheets, binders bursting with reporting, and huge investments in manpower. Now, online compliance tracking systems enable companies to utilize consistent, efficient compliance standards throughout each sector of their business without excess cost or labor.

Spend Visibility

Spend analysis is the process of collecting, cleansing, classifying and analyzing expenditure data with the purpose of decreasing procurement costs, improving efficiency, and monitoring compliance.

Vendor Visibility

The goal is the enable visibility into every business process, particularly where there are issues of performance. Visibility is essential for business to monitor vendors and suppliers and ensure implementations are aligned with business goals.

Transparency

Manage variance in the context of major spend areas. Identify spending trends and specific line items and costs that are driving variances.

Financial Planning and Analysis

Financial planning and analysis (FP&A) is the process of compiling and analyzing an organization’s long-term financial strategy.

Contract & Compliance Standardization

Contract compliance and standardization includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution.

Vendor Accountability

Accountability and transparency are cornerstones of solid business practices, so even if you have the utmost trust and confidence in your vendors, you should still ensure that the relationship is as transparent as possible.

Vendor Assessment/Ranking

Vendor rating is the result of a formal vendor evaluation system. Vendors or suppliers are given standing, status, or title according to their attainment of some level of performance, such as delivery, lead time, quality, price, or some combination of variables. The motivation for the establishment of such a rating system is part of the effort of manufacturers and service firms to ensure that the desired characteristics of a purchased product or service is built in and not determined later by some after-the-fact indicator.

Cost Controls (Stop “cost creep”)

Cost management is a continuous process that takes place during vendor management to determine and control the resources needed to perform activities or create assets.Cost control includes investigative procedures to detect variance of actual costs from budgeted costs and diagnostic procedures to ascertain the cause(s) of variance and corrective procedures to effect realignment between actual and budgeted costs.

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Asset Management

Asset Management involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve the organisational objectives. This balancing might need to be considered over diffrerent timeframes. Asset management also enables an organzation to examine the need for, and performance of, assets and asset systems at different levels.

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Process Improvement

Business process visibility is important in order for organizations to determine how well processes are running, and whether they are delivering maximum value to the business. Process visibility can determine whether business processes, transactions and activities are processing accurately.

Profit Improvement

Vendor management includes sustainable improvement areas of the companies facing significant financial and operational challenges, including rapidly deteriorating performance indicators, excessive leverage and cost concerns, loss of management’s vision or clients and cash flow risk.

3rd Party Expertise and Neutrality

Provide relief from single-supplier reliance and provide quicker engagement (especially in cases of a supplier backlog), cost competitiveness, and higher service levels.

Analytics

Business analytics explore your organization’s data, with an emphasis on statistical analysis. Analytics are used to determine data-driven decision-making.