Benefits of an Automated Vendor Risk Management System

Vendors are an integral part of supply chain management. By fulfilling the demand of businesses, vendors keep the chain of supply going. A few common examples of vendors are listed below:

• Manufacturers
• Wholesalers
• Retailers
• Service and maintenance providers

Vendor Risks and your Business

Before choosing vendors for your organization, it is very difficult to analyze them thoroughly. First impressions can be deceiving when it comes to dealing with vendors as initially (before getting your business) they try to impress you and offer you their full support. But their interest fades as soon as they move on to bigger and better ventures, leaving you in a state of chaos.

The success of an organization hinges heavily on the way it manages its vendors. As vendors are crucial to your business, you should know that any laxity on their part will have a great impact on your business. Whether you are dealing with a manufacturer or a service provider, you should always be alert and well-prepared.

Vendor Management for Reducing Risk

Third party risk management is the process of developing and managing agreements with multiple third-party vendors. A good vendor management plan can easily control costs, minimize third-party risk exposure and drive service excellence. Organizations should always make sure that the products and services provided by the third-party vendors are safe. By checking the safety of vendor provided goods, an organization can reduce the number of risks for it.

Need for Better Vendor Risk Management Solutions

Small businesses have been using spreadsheets for keeping track of inventory, vendor supplied goods and business accounts. Vendors are often managed with a vendor compliance checklist or vendor quality audits. However, with the increase in the number of compliances and stringent audits, organizations have started making use of Vendor Management Software.

Highly regulated operations under the stern eyes of regulatory bodies have made the job of organizations and businessmen quite difficult. Not only do they have to be absolutely certain about their own operations, they also have the added responsibility of making sure that their vendors are following compliances. Any deviation from regulations can be heavily punished with a fine and sometimes even by a lawsuit. This is an extremely challenging situation which screams for a change in approach towards vendor management.

Making use of AI powered Vendor Management Software is a great way to minimize the number of risks in any organization. This tool makes use of a strategic view of building and leveraging vendor value with full lifecycle management. A lot of executives are starting to look at vendors as a total portfolio to manage and the AI powered Vendor Management Software mirrors that vision.

Benefits of Automated Vendor Management System

Automated software for vendor management like Predict360’s Vendor Management Software centralizes vendor management process and prevents it from oversight by making use of a complete vendor management process. Below is a list of benefits provided by the Automated Vendor Risk Management System:

1. Single Point for Accessing All Vendor Records: With this AI powered system, you are able to access all the information on suppliers, procurements, contracts and reviews at one place. You can also track and monitor your contracts and other important vendor documents.
2. Access Rights and Roles: The automated Vendor Management System allows you to assign access rights and roles to different users in the system depending on their respective responsibility.
3. Compares Client Relationship with Risk Index: This software not only has the ability to manage risks, it can also analyze the effects of vendor relationships on your organization’s risk index.
4. Better Alternatives to Rudimentary Techniques: By using this software, you will no longer have to rely on spreadsheets and word processing tools. These old management tools are inefficient at meeting the requirements of modern day auditors.
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.

The AI powered Automated Predict360’s Vendor Management System is the need of the hour in the current climate. With its many benefits, it can be a major acquisition for your organization and will help you in managing your vendors in a better way. 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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