COVID-19 has presented a major financial and operational shock to organizations. Large, well-capitalized businesses with extensive resources and robust business recovery plans appear to be holding up well. Life is more challenging for small to mid-sized businesses (SMB), however, especially if they are undercapitalized and under-resourced.

The shift to remote working has tested the operational resilience of many businesses, especially those that historically had a face-to-face culture. While some organizations had already enabled remote working before COVID-19 struck, others have had to embark on a major scramble for laptops and mobile phones, often ignoring the contractual relationships that already existed. 

In some instances, the lack of an online document management platform required staff to visit the office — at least some of the time — to access critical information and systems.

Health and safety is a top priority in factories, laboratories, and other workplaces where people work alongside one another. Deep cleaning practices have been adopted, and shift patterns have been altered. Nevertheless, it can be difficult for organizations to secure the personal protective equipment needed for staff to work safely.  Existing contracts may be able to leverage their position, to prioritize their needs.

A further challenge to operational excellence has been posed by disrupted supply chains, with some companies struggling to secure key components from overseas suppliers. Organizations that have maintained a comprehensive VMS document database of alternative vendors as part of their vendor management lifecycle management process are benefiting from the insights they gained when building out the system.

Organizations are planning for recovery by undertaking cash modelling and scenario planning around what different versions of the future might look like, especially when it comes to vendor management. Companies will look to balance cost with resilience when choosing vendors. Manufacturing companies that struggled to source the parts they needed in the crisis are likely to source from nearer home where possible. Strategic vendor relationships, with preferential terms will become critically important to building for the future.  

COVID-19will continue to present a wide range of challenges to organizations. These challenges differ significantly between industries, business models, income streams, and levels of cash reserves. Some organizations will find that they have proved their resilience in this crisis while others are still struggling to adapt. The one thing that all organizations have in common is the desire to take advantage of the recovery when it comes.  A fully managed VMS can help navigate the current challenges, and position a company to be ready from both a process and financial point of view, as that recovery becomes apparent.

About Limitless Technology

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at:

Phone:             407.330.4466

Though the two business functions are different, the relationship between the two is highly intertwined. The vendor management function is about day to day execution, and the finance function is all about keeping the balance sheet in the black.

For the best possible outcomes, the two departments must work together and align their goals. Organizations that allow the departments to function as partners give themselves a competitive advantage and often see improved business performance.

The Role of Finance in Vendor Management

Finance sets spending limits and budgets for the vendor management team, and the vendor management team aims to reduce compliance and conformance risk, while trying to save money when and where possible.  Using a standardized Vendor Management platform (either in-house or via an outsourced VMS partner), that includes document management and benchmark analytics allows for a balanced approach to managing risks and costs.  Finance provides spend management reports, revenue reports, and other critical data that demonstrates overall company health. Vendor Management should use these reports, along with opportunities to review and optimize vendor contracts to facilitate day-to-day decision-making processes, along with longer term vendor life cycle management.

Vendor Management and CFO Collaboration

When the leader of the Vendor Management team (which may or may not be the CPO) and Chief Financial Officer collaborate, and use an optimized document management system, everyone has access to the information they need, when they need it, from end-to-end. Both sides of the organization can easily consider the status of any contact or invoice, at every stage of the journey, from initial negotiation to contract approval, invoicing, and payment.

Finance can use the information to make sure they’re getting all possible discounts and increase profits by securing early discounts through early or on-time payments. Vendor Management can use the information to know which vendor relationships are the best, so they can continue to reward the vendors that perform optimally, minimize company exposure and save the company money in both the long and short term.

Procurement Should Demonstrate Return

Beyond working together on technology surrounding the document management system, the vendor management team should be willing to demonstrate the return on investment their actions provide. By showing the finance department positive impact of their choices – whether it be in the form of cost reduction, mitigating risk, or other compliance and conformance achievements, the two departments can work much better together.

Establish Clear Responsibility Parameters

To facilitate better collaboration between vendor management and finance, it’s essential to establish clear parameters as to who is responsible for what. Key activities should be assigned to one department to take the lead, based on team strengths. This ensures no one is left fighting over who leads what and everyone gets credit for the role they play.

If your business is currently operating in a silo structure where vendor management and finance have little to do with one another, smooth collaboration won’t happen overnight. Encourage the groups to come together and discuss ways the two departments can help make one another’s lives easier, and then begin implementing strategies.  

About Limitless Technology

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at:

Phone:             407.330.4466

Here are a few key things to consider to help you better manage both vendor performance and the overall vendor lifecycle.

1. ANALYZE: Collect Vendor Data, and Ensure Your Data is Accurate

Communication is key when it comes to vendor relationships. Instead of dictating a list of demands for the vendor, it’s in your best interest to meet face to face (or via video webinar) and discuss each other’s understanding of the relationship. This reciprocal conversation with your vendor will identify what they need from you, and vice-versa. An open dialogue fosters a mutual sense of trust and enables the vendor to do a great job for you.

By the same token, it is imperative that the expectations, documentation, and data submitted to a vendor management platform are as accurate as possible. If the data is not verified and reviewed when it is entered into the platform, it will not be reliable for benchmarking analysis in the future. 

2. IMPROVE: Establish Routines, and Be Predictable

It may seem impossible to develop tasks and schedule that track when contract rates or terms will expire or update – and try as you might, they may change when you are not paying attention. Most vendors find it easiest to meet your expectations when rates and terms are both predictable and consistent. Notification management, consistent reviews and business update exchanges will help your business avoid any potential surprises from your vendor and mitigate future risks and costly overcharges.

The use of an outsourced document management platform, coupled with knowledgeable resources and processes can help ensure these vendor rate, term, and condition criticalities are monitored. Additionally, the appropriate personnel can be provided a notification and escalation process which ensures these critical actions are continuously monitored. These 3^rd party systems and support allows your vendor management teams to better collaborate with your vendors and hold you vendors accountable to meet your specific operational and financial needs. 

3. MANAGE: Create a Service Level Agreement

Businesses frequently overestimate the value of having long-term relationships with their vendors.  In most cases, it is due to a lack of understanding of market rates or having the appropriate benchmark analytics to negotiate appropriately with your current vendors.   And because vendors take advantage of this reality, it should come as no surprise that many vendors love to add auto-renewal clauses for that reason.

Having a service level agreement (SLA) is one method to clearly document expectations from both sides. The purpose of a simple service level agreement outlines mutually agreed-upon terms and conditions between your organization and your vendor. They clearly indicate to your vendor your intention to work with them over the life of the agreement. Your vendor can then plan their business and resources to meet your needs.

4. CONTROL: Measure Vendor Performance and Start Cycle Again

“What gets measured gets done” certainly applies when it comes to your vendor lifecycle. By establishing simple and agreed upon metrics, your company and your vendors can have a much more constructive discussion about their performance.

Most vendor metrics focus on delivery in full and on time (DIFOT) and quality control metrics. DIFOT is often measured against the agreed upon lead time and deliverables, while quality may simply measure the performance of the contracted service. These metrics are typically included in the Service Level Agreement, reported, and issues are discussed as they occur, or at a regularly scheduled performance review.

Managing on the vendor management lifecycle is a critical part of any vendor management organization.  By focusing on the process, with a goal of continuous improvement, you should see improvements in efficiency, lower risk, and better compliance.

About Limitless Technology

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at:

Phone:             407.330.4466

Some might assume fraud can only occur on an internal level by a company employee – but the truth of the matter is, on a rare occasion, fraudulent activity can be committed by both vendors and employees. Whether committed internally or externally, the effects of fraudulent activity are far-reaching and have dire consequences for all those involved. Businesses could experience grave financial losses, legal liability, and a damaged reputation from what may seem to be a simple billing error. Risks such as these, combined with a a few well-known cases of procurement fraud begs the question – are these errors the result of fraud, or mismanagement?

Despite their well-meaning intentions, mainstream media has created a misconception that corporations should be highly wary of malicious fraud occurring within the vendor management process. However, this level of concern is probably overstated. Realistically, the majority of invoices billing errors occur inadvertently, and usually entail:

• A general misunderstanding of contract terminology
• Accidental miscalculation by an individual using manual billing methods
• Technological errors and glitches

Although it may be tempting to take comfort in the fact that most of these errors are unintentional, it would be wise for executives to recognize the impact such errors can have in the short and long term. Even inadvertent errors such as those mentioned above can have a costly impact within an organization.

As a matter of fact, a recent report suggests as many as 3.6% of vendor invoices are riddled with errors. This statistic is bit unsettling when you consider the great number of businesses who rely on their vendors to execute their business strategy. Without close supervision and use of checks and balances, potential losses can really add up – especially when these mistakes are undetected for lengthy periods of time.

Fortunately, some “Do It For Me” vendor management service providers offer a team of experienced contract compliance auditors who specialize in discovering billing errors and other risk-related issues. The inclusion of third-party experts promotes improvements in areas that might otherwise go undetected until it’s too late. Businesses greatly benefit from the services offered by these providers as they often include error forecasting and offer notifications/escalations for renewals and criticalities for relevant business documents.

Acknowledging the risks of both fraud and inadvertent mistakes, and performing contract compliance audits to detect and thwart them, businesses can successfully enhance business processes.  This reults in an increase in transparency and efficiency, and also can produce a considerable return on investment.

About Limitless Technology

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at:

Phone:             407.330.4466

With the continuously evolving governance, risk management and compliance landscape, organizations need to stay on top of compliance at all times.  Regardless of the size of your corporation, there are 3 compliance challenges most companies face in their vendor management organization.

• Disorganized vendor monitoring processes
• Outdated approach toward vendor risk assessments
• Increased regulatory pressure

Disorganized Vendor Monitoring Processes

As companies face greater instability due to the ongoing pandemic, the dedication of limited staff and scarce resources to monitor vendors becomes increasingly difficult to manage. While trying to improve their bottom line, companies often try to use undefined, fragmented, and decentralized vendor monitoring systems – a practice that is not only detrimental to compliance, but is time-intensive and difficult to scale properly. Without adequate resources, structured processes, and defined metrics, many corporations fail to consistently monitor their vendors’ compliance to contract terms.

Outdated Approach Toward Vendor Risk Assessments

Lack of policy awareness and training leads into another common compliance issue: the use of outdated and ineffective tools to create, distribute, and manage vendor relationships. Although word processors and spreadsheet programs are user-friendly, these tools do not offer the advantage of real-time compliance-threat monitoring that could be gained by using a document management platform. This gap opens the door for both compliance issues and operational issues. The result? If company policies are not effectively explained to vendors, a gap in expectations could occur between both parties, thereby impacting the vendor’s ability to maintain compliance according to your company’s standards.

Increased Regulatory Pressure

With a heightened focus on protecting consumer privacy, external regulatory procedures and requirements are on the rise. As such, any company dealing with external vendors must ensure their vendors are also following the same procedures and regulations. It is the organization’s responsibility to diligently oversee compliance risks such as anti-corruption, policy adherence, and potential frauds to protect company interests. Without this supervision, companies face an increased risk of fines, penalties, and a plethora of non-compliance issues.

About Limitless Technology

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at:

Phone:             407.330.4466

Here is why.  Noncompliance can cost your company a lot of money. If your business isn’t managing its contracts effectively, it could be opening itself up to several risks, including (but not limited to):

• Losing money to unmanaged spending.
• Government audits and legal action.
• Complicating relationships with vendors.

According to some experts, as many as half of C-Level Executives surveyed stated that they are achieving less than 50% contract compliance. This is an alarming statistic when you think about the risks facing an organization with no focus in this area.

If your vendor management team is like many others or split across several departments, several common mistakes may be occurring. Maybe you’re entering contracts that have auto-renewal clauses, perhaps you’re not making sure that your suppliers are adhering to the agreement, as it was signed and, possibly, you’re not negotiating the best terms for your company.

Below are 3 easy tips that will make it easier for your team to improve its contract management program, and avoid noncompliance.  If you implement these tips, you will lower risk, save money, and build better vendor relationships.

Tip #1: Don’t Enable Auto-Renewal of Contracts, or allow “Evergreen” clauses

It might seem tempting to just allow your contracts to auto-renew. Sounds much easier, right? Instead of renegotiating the contract each time, it can seem more convenient to have it renew on its own.

Often, companies lose money by allowing their contracts to renew automatically. Contracts that contain “evergreen” clauses typically require you to terminate the agreement within a certain amount of time before the contract ends. Sometimes, the timeframe can be anywhere between 30 – 90 days.

Here’s the thing… if you don’t give the vendor notice within that timeframe, your company is obligated to renew for another term, which may not be beneficial to your organization. This is why you should avoid contracts with evergreen clauses.

What if you were able to renegotiate the contract? What if you could get better pricing? Better delivery times? Better payment terms? Entering into an evergreen contract could open you up to the risk of limiting your flexibility.

Tip #2: Conduct Your Own Contract Compliance Audit

If you’re going to have an effective contract management program, you need to audit your vendors. Just like your vendors will want to make sure that you are abiding by the terms of your contract, you need to do the same.

Here’s a few tips:

Determine the Extent of the Audit

First, you need to figure out how extensive your audit will be. Will you audit the whole document, or are you only concerned by one element of the contract?

Determining the extent of your audit will keep you from wasting time because you will know exactly which parts to look at. Of course, if you’re going to audit the whole document, it’s a good idea to make sure that your vendor management organization has the time and resources to devote to this task.

Identify Your Objectives

After you figure out how extensive your audit will be, you must figure out what you’re trying to accomplish with your audit.  What is your end goal is?

• Making processes more efficient.
• Recovering costs (from overpayments).
• Managing risk.
• Identifying fraudulent activity.

This is incredibly important. If you don’t know what you’re trying to get out of the audit, you won’t be as effective.

Work With Your Supplier

Auditing your suppliers isn’t a confrontational thing…it’s just meant to ensure that both sides are living up to the agreement.

It’s a good idea to develop a dispute resolution process that both you and your vendor can agree upon. There might be times when there are disagreements between both parties. Having a dispute resolution process that is already agreed upon will help you resolve these disagreements in a way that preserves the relationship.

Evaluate the Success

After performing the audit, take some time to figure out what went well and what didn’t. Were you able to accomplish your objectives? What should you look at in future audits?

Tip #3: Create a Consistent Process

One of the main keys to maintaining contract compliance is ensuring that there is a consistent contract review process in place. You want to make sure that each contract is handled in the same way.

Ideally, this process should be documented and easy to understand. There should be no question as to what the team members should do and how they should do it.

Come up with a workflow that each member of the team will perform. You can adjust as necessary, but it is important to have an established process that everyone follows. 

About Limitless Technology

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at:

Phone:             407.330.4466

Released last week John Legere, CEO of T-Mobile, wants to get the message out that companies and individuals are paying unnecessary mobile data overages. Big question from us should be … Why do we OVERPAY? Bottom line in most cases, is because nobody has the time or resources to stop this where it starts …. with the carriers. It’s a fight, but more importantly it’s your money to get back!

John Legere is promising that if his petition can reach 250,000 signatures, he’ll send the carriers a “message that they won’t miss.” Legere mentions skywriting a nasty message above AT&T’s headquarters. Legere revives his call from last year for other cell phone carriers to end overage charges. Legere says, according to T-Mobile’s calculations, that other carriers in 2014 collected about $1.5 billion in overage charges.

Ever given any thought to how much your business is paying for data overage charges? Do you think it’s a few dollars? Maybe hundreds? What about thousands? At Limitless Technology ~ Cost Reduction Specialists – WE KNOW. It’s our job to know and get it back!

The most important question for CEO’s and CFO’s then becomes, how do I manage my mobile data in the office?  Technology is designed to enable companies to manage the time it takes to get information back into the field, document issues in the field, locate employees, and stay in contact with anyone, at any time. For every business owner these questions exist: How do I control the data that is being used? How much data is being used or abused?  ASK YOURSELF: Is your business struggling to manage mobile data? Are your employees constantly going over their data allowance for that month? Are you at a loss for how to control it? How much is this costing us? Are there other areas of your telecom spends that may also have these unnecessary spends and cost recovery needs?

Overage charges concerning mobile data is not a matter to be taken lightly, nor is it an inexpensive mistake one can afford. Knowing where they come from and how to monitor them is essentially the soundest way to safeguard your company against expensive overage costs. And if you don’t take action, more likely than not, your company will continue to lose money. Cell phone companies make a lot of money from overage fees. That’s YOUR MONEY. Let’s get it back – Contact Limitless Technology ~ Cost Reduction Specialists to see how much you could be saving! It’s a free consultation that will show you how other companies have benefited and how you can to by saving money every month at no risk to you. Start reducing overhead, take control of your telecom expenses now! After seeing our results … you will wish you had called sooner. Call Now: 866-504-4050. We are waiting to take your call.

FIND. IMPLEMENT. SAVE.