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Why is it Difficult for Staff to Follow Vendor Management Procedures?

by August 22, 2019
Vendor management is one of is the most complex and sophisticated methods in the whole procurement process. It can seem simple when the number of vendors is small, but the complexity rockets “straight up” as the number of purchases gets higher.
 
Staff, managers, employees, and internal resources responsible for managing this vital part of an organization are under constant pressure to manage the complexity of both individual decisions and company process requirements. Because of these complexities, organizations are finding it more and more difficult for staff and management to follow vendor management procedures.
 
There are several reasons for this to be the case;
  • In today’s corporations, many tasks are assigned to internal resources
  • Time and knowledge needed to manage vendors isn’t available
  • The appropriate focus and/or attention is lacking
  • Thorough audits are not performed consistently
  • Not enough time or knowledge to analytically evaluate where savings could occur
  • Benchmark analytics for the renegotiation of contracts is unavailable
The multiple tasks become even more difficult to manage, track, and organize when there is the absence of an organized, trackable system.
 
The complexity of managing these procurement processes (and the people responsible for following them) are incredibly difficult in a constantly changing, competitive human resource environment.
 
The financial and reputational damages are costing organizations thousands – or even millions in some cases. Many companies ARE getting ahead of this problem by finding a partner with the tools and expertise to manage the details, as it relates to local, regional, or even national service-related costs.
 
They need a partner they can trust, that will do the benchmark analysis on every single vendor, ensure bills get paid on time and services providers aren’t taking advantage of you, and actively renegotiate for lower pricing and better T&Cs, ultimately resulting in the elimination of “spend fat” and a more strategic use of budgets.
 
The least common but most effective solution is using a powerful fully-managed VMS service to externally manage, monitor, and engage vendors efficiently on an on-going basis. Finding the RIGHT EXPERT RESOURCE to manage vendors will not only provide insight into a more effective process, but also help employees better follow procedures. This ensures your organization is not exposing itself to risks and lost profits.

LIMITLESS offers a fully managed solution to ensure you are “paying for what you are receiving”. Ensuring contract terms are met as well as compliance standards. Tracking any potential risks, optimizing your billing and managing all contract and agreements in one central software solution.

Outsourcing vendor management to a third party will also help standardize processes; and consistency helps enable the transparency essential to effective governance. This helps to alleviate flawed data, and costly mistakes.

Our software will not only house every contract, service agreement, warranty or renewal agreement, but we also manage negotiations for better rates and terms saving your business from unnecessary fees and costs while maintaining quality standards. If you have questions regarding how to manage vendor contracts/agreements or would like more information regarding our fully managed vendor management solution contact LIMITLESS at (866) 504-4050 or email us at info@limitlesstechnology.com.

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