“The single biggest problem in communication is the illusion that it has taken place.”

George Bernard Shaw 

The path to success in reaching organizational objectives requires establishing relationships with a multitude of suppliers needed to support our day-to-day business activities. Once the vetting work is completed and, a supplier is selected, the new vendor set-up process begins. 

As part of the new vendor set-up effort, new business partners are often required to provide information and documents related to verifying their qualifications and demonstrating that they meet compliance standards. 

 Without reliable systems and processes in place, managing the collection and validation of this information can be difficult and unwieldy. 

Competently managing the qualifications/compliance information element of the new vendor set-up process is essential from a risk management perspective. A well-managed data collection and evaluation process, along with accurate reporting, provides managers with visibility, creating a better understanding of the level of exposure attributable to our business partners.

Conversely, a lack of reliable systems and processes to collect and validate this information will likely result in low levels of vendor participation and low compliance rates. Ultimately, this increases the risk of non-qualified vendors slipping through the cracks, leading to increased exposure to potential risks from reliance on such vendors. Substandard systems and processes can also lead to heightened loss exposure due to the higher risk level correlated with working with those vendors failing to demonstrate compliance with minimum qualifications and standards.

Confirmation that suppliers are responding to our requests with accurate and timely information is essential for maintaining internal control. Ineffective systems and/or failure to execute onboarding process tasks competently results in information gaps and a lack of visibility which ultimately elevates the organization's risk. 

New suppliers are typically required to provide multiple pieces of information as part of the vendor set-up process (e.g. W9, payment remittance location, background checks, qualification documents, safety information, evidence of insurance, licensing information, etc.) This prompts the question “What is the most efficient way to manage the collection and validation of all this information?” 

One option is to create and deploy a custom-tailored web portal as the focal point for managing data collection tasks that are part of the new vendor set up process. Establishing a vendor portal will also enable risk managers to digitally transform their manual processes for vendor onboarding, resulting in improved consistency, improved compliance rates, improved visibility and qualification. 

How It Works

The portal guides the supplier through the onboarding and qualification process via a series of easy-to-use system screens. The screens walk the vendor though required entries of information, including prompts for uploading any required documents. Establishing a vendor registration & qualification portal is an excellent mechanism for managing both new vendor registration and the requalification process for managing on-going supplier compliance obligations.