Benefits of Modernizing Your Vendor Management Process

Modernizing your vendor management process can help you save time, cut costs, evaluate vendors more easily, maintain stronger connections, improve compliance, reduce risk, and enhance visibility.

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Published June 01, 2021   •   2 minute read

Working with external parties is a valuable way to enlist the help of highly skilled professionals when you need it, without having to pay for their services when you don’t. However, maximizing the benefits of this relationship requires careful vendor management. 

Vendor management is the process of developing and maintaining associations with outside vendors. This also entails mitigating third-party risk, optimizing value, controlling costs, and monitoring status. Modernizing your vendor management process can improve virtually every aspect of your system, including efficiencies, expenses, and more. 

Here are just several of the many significant advantages. 

Save Time

The right vendor management system can help your team save time by consolidating critical information onto one platform, serving as a hub and cutting back administrative inefficiencies, while also reducing the risk of time-consuming errors or lost documentation. 

Additionally, automated features enable you to save time by broadcasting ROIs to a pool of qualified vendors in your area. Combined with convenient onboarding tools, this can get you the services or goods you need, faster.

 

Cut Costs

It may seem counterintuitive, but an antiquated vendor management process can actually cost you more than upgrading. Expenses associated with data loss, remediation, and potential compliance fines add up. While an enhanced vendor management process may require a larger upfront investment, it can save you money in the long run

By leveraging a vendor management tool to garner competing bids, businesses may also be able to save money on projects by finding qualified vendors willing to work for less. 

 

Evaluate Vendors More Easily 

With all your information in one place, it’s easier to compare potential vendors head-to-head to decide which is right for a project. In addition to helping you save money, this direct comparison can make it easier to spot the potential benefits and drawbacks of each option. 

 

Maintain Stronger Connections

Juggling multiple vendor relationships can be complicated. An advanced vendor management system centralizes information and communication tools so that you can review information and contact your vendors, without switching between multiple platforms.

 

Improve Compliance

Streamlining information makes it easier to spot deficiencies. Some platforms will also alert you to when certificates of insurance (COIs) are due for renewal, enabling you to contact the vendor for updated documentation. Routinely updating policy information and reviewing COIs can promote steady compliance. 

 

Reduce Risks

Maintaining compliance reduces third-party liability, but healthy vendor management can also limit other potential exposures. Since you’re handling sensitive data about your vendors, there is always a possibility it could fall into the wrong hands. This could, in turn, lead to other issues, such as reputational damage, non-compliance, and financial penalties. A carefully designed platform enables your team to use information as necessary, while limiting outside access. 

 

Enhance Visibility

A comprehensive vendor management system gives clear visibility into multiple aspects of your external workforce, including rates, projects, insurance documentation, and more. This up-to-date information can grant you the insight you need to make informed decisions and steer your projects in the right direction, without exposing yourself to unnecessary risk

 

BCS is one of the preeminent vendor management solutions on the market. In addition to full-service and self-service COI tracking solutions, the BCS App includes a simplified vendor onboarding process, a database of pre-qualified vendors in your area, automated RFP broadcasting, and integrated vendor communication tools. This streamlined platform supports you throughout the vendor management process, maximizing the extraordinary benefits of full modernization. Contact us today to learn more. 

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