7 Ways to Benefit with the Use of Vendor Management System

Vendors are an important part of the supply chain as they are responsible for fulfilling the demand of various businesses. Perfect synergy with vendors is essential for proper operations and best results. This makes vendor relationships fundamental to operations of entire industries, such as retail and information technology.

Challenges in Maintaining Good Vendor Relationships

Third party risk management is the complete process of developing and managing agreements with multiple third-party vendors. If vendor management is done correctly, it can control costs and minimize third-party risk exposure.

Maintaining good relationships with multiple vendors can be a tricky proposition for a business owner. As the success of a business directly depends on the quality of its vendors, screening process and vendor selection becomes extremely important.

First impressions can sometimes be deceiving when it comes to dealing with vendors. Initially, they may look like a good prospect, but after prolonged dealings you may find them to be lacking in some aspects. This is the reason why vendors are often managed with a vendor compliance checklist and audits. However, with the increase in the number of compliances and stringent audits, organizations have started making use of Vendor Management Software.

Regulatory Bodies and Need for Vendor Management Software

Regulatory bodies are tasked with creating and enforcing compliances. In case rules are not followed by an organization, regulatory bodies punish them by fining them a substantial amount of money. It is hard enough to follow rules as an organization, but when you have the responsibility of making sure that your vendors are also following the rules, the task becomes even tougher. The risk that a vendor’s infraction may result in a fine for your organization is just too much to bear. Rudimentary methods like filling up checklists just do not cut it anymore and there is an urgent need for a better solution.

AI powered Vendor Management System is great at reducing number of risks in organizations. This tool uses a strategic view of building and leveraging vendor value with complete lifecycle management. Many executives are starting to look at vendors as a total portfolio to manage and the AI powered Vendor Management Software mirrors that vision.

7 Clear Advantages of using the Vendor Management System

There are many advantages of using a Vendor Management System over rudimentary techniques. Automated software for vendor management like Predict360’s Vendor Management Software has seven clear benefits which makes it perfect for vendor management:

1. Better Option than Obsolete Techniques for Vendor Management: By using this software, you will no longer have to rely on spreadsheets and word processing tools. It is a better alternative to vendor checklists. The old management tools are inefficient at meeting the requirements of modern day auditors and this software does everything in a much better way.
2. Centralized Point for Accessing All Vendor Records: Vendor Management Software allows you to access all the information on suppliers, procurements, contracts, and reviews at one place. It can also be used for tracking and monitoring your contracts and other important vendor documents.
3. Allows you to Distribute Access Rights and Roles: The AI powered Vendor Management System allows you to assign access rights and roles to different users in the system depending on their respective responsibility.
4. Compares Client Relationship with Risk Index: This software can manage risks and also analyze the effects of vendor relationships on your organization’s risk index.
5. Streamlines Vendor Risk Assessment: Making use of AI, this automated software executes corrective and preventative actions directly from the results. This helps in better assessment risks in all regulatory compliance functional areas such as finance, operations, and quality management.
6. Reduces Risks Effectively: By looking at vendors as a total portfolio to manage, it provides an effective way to manage vendor resources.
7. Uses Artificial Intelligence and Cuts Down on the Resources: As this tool is powered by AI, it performs all the functions without any requirement of additional human resources. This helps in cutting down the number of resources required to decipher patterns and observe trends.

The AI powered Automated Predict360’s Vendor Management System is the perfect for managing vendors in today’s world. With its clear advantages, it can turn into a major asset for your organization. For more information on Vendor Management Software and how it can be further enhanced as part of an integrated risk and compliance management suite, visit https://www.360factors.com/.

About the company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

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