What is a Vendor Oversight Program?
Vendors – good ones, that is – are critical for powering any successful business operation. Having a formalized oversight process for your vendors ensures that each of your vendors are consistently getting the proper review that they deserve. This is critical to ensure that your organization is not taking on risks it can’t afford; risks that originate at the source of a third party.
At a minimum, LogicManager’s automated Vendor Oversight Program solution package helps you become aware of threats before they turn into public scandals. Keep reading to learn more about how our robust application can help protect you from risks and foster success.
As we like to say, you can outsource processes, but you can’t outsource risk. Just because a vendor is completing a process for you doesn’t mean that at the end of the day your organization doesn’t hold any of the risks associated with that process. If your vendors are providing services that are customer-facing and they are not meeting the standards you and your customers hold your business to, they might take their business elsewhere. Customers don’t care if a mishap or scandal’s root cause lies with your vendor – at the end of the day, you allowed a risk to manifest and impact their experience.
So what are the risks of lacking a formalized vendor oversight process? Chances are, you’ll waste time and money dividing those tasks amongst full-time employees, who could be spending their time helping your company earn more money rather than performing manual administrative tasks. Additionally, your program will be subjected to human error, meaning important due dates and contract requirements could be missed, leading you to re-enter an agreement you were planning on canceling, or vice versa.