You bought a shiny new software system to do vendor management. Congratulations! Now you have to make it work for your credit union or community bank.
Software is nothing but a tool and it doesn’t think (at least not yet). Unless you now take on the task, and continue to take on the task forever, you only have software. No results.
The process of identifying, tracking down, reviewing and uploading contracts is daunting. Chances are you have some of your contracts, but not all. You might know when some are coming due, but what about the others? It’s a lot of work your software system won’t do automatically.
Every year, you need to contact all of your critical, high-risk and important vendors to track down due diligence. Then you must read SSAE 18 audit reports, each from 50 to 150 pages, for each critical vendor. Next you have to review financial statements for those vendors. Then . . . you get the picture.
Ask yourself: What do these painstaking tasks deliver other than passing an exam?
Vendor management came to credit unions and community banks via your regulators and everyone rushed to meet this new regulatory requirement the same way regulators approach it. The focus has been (and still is) on a process that takes a lot of time and energy, but results in little risk management.
Some say it’s a waste of time. We disagree – with a caveat.
Passing the vendor management exam is good, but the process of loading dead documents into a software system and reviewing them provides little value. If you do nothing more with your vendor management program, it’s a waste of time and money.
A successful vendor management program delivers three essential results:
- Reduced expenses
- Improved vendor performance
- Managed risk
Does your vendor management deliver those results, and do you have the numbers to prove it? If not – you’re not doing vendor management, you’re doing compliance.
Maple Street’s revolutionary vendor management system, The Vendor Advantage System®, goes beyond the vendor management paper chase with a proven process to:
- Deliver a complete vendor management program
- Incorporate supply chain management principles
- Manage vendor lifecycles
The Vendor Advantage System® allows you to outsource these “low value” tasks to Maple Street so you have more time to focus on serious risks and take care of your members or customers. It’s the only system that guarantees you’ll save more money than you spend and you’ll pass your exam with flying colors.
Learn how to do vendor management the right way. Give us a call at (321) 257-3930 or email email@example.com.