Recently, Onspring began working with a large financial institution to help them manage vendor contracts. As the organization grew, its vendor roster also expanded, and so did the maintenance and onboarding requirements. Add to that, changes in the Sourcing team meant that key information was leaving with people who previously managed vendor accounts. I recall hearing frustrations like, “Why did we renew that vendor contract? We don’t even like them anymore!”
By Dave Hulsen, Co-Founder of RFP365 – Gardening is one thing, but what about our growing businesses and the third-parties we engage to help us flourish? As I thought about the numerous vendors we rely on, I started to think about what “pesky” vendors might be choking out our true partners (i.e. the ones that are truly critical to our success). If any of our vendors are increasing the amount of risk we manage to unacceptable levels, we need to identify them.
Managing risk within the confines of your own business is hard enough. When you tack on risk associated with vendor relationships, the complexity only grows. As business leaders, we have to carefully manage vendor relationships to protect our customers, employees and stakeholders, but the process can be daunting.
For the last few weeks, I’ve been working with a client that’s building additional structure and rigor into their vendor risk management program. They have all the pieces: a formal vendor policy, established relationship owners, regular risk assessments and due diligence reviews, and a detailed contract management process. However, they lack a connected view of all these moving parts, so my colleague Jason and I have teamed up to help them bring all the pieces together into a smart and scalable solution.
When you develop software, there are many stages of the design phase that are highly critical to the final product. Too often, companies are in a rush to push feature releases or changes to their products that are “box checkers.” They’re trying to compare themselves to a competitor in a favorable light, without actually thinking about the problem in depth, or not considering things such as long-term performance and usability.
My wife and I recently purchased a new “old” home, meaning it was one that would need some work. Our goal was to complete as much of this work as possible before move-in day, so getting the right contractors in place as quickly as possible was a must. I couldn’t help but picture Tom Hanks and Shelley Long in the movie The Money Pit (one of my favorites) and think, “Is this us? What are we getting ourselves into? Will our house really be ready in two weeks?” (That’s a joke.)