In an increasingly regulated world, and a rapidly changing business environment, organizations are facing greater scrutiny than ever when it comes to compliance. The focus on compliance is expected to continue to increase this year and into the future.
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- Outdated approach toward vendor risk assessments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Outdated Approach Toward Vendor Risk Assessments
Lack of policy awareness and training leads into another common compliance issue: the use of outdated and ineffective tools to create, distribute, and manage vendor relationships.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.
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