Calling for Partners for Meeting significant Demand for Vendor Management
September 10th, 2010, IN. – The Passageways team today announced it is making great strides in providing industry’s leading Vendor Management solution. As this is a big priority for all financial institutions, the Passageways team has been investing steadily in Vendor Management since early 2009. Passageways is one of few offerings on the market which can be implemented both in-house or in a hosted SAAS model, with live customers in both formats.
This initiative fits well in the Passageways vision; “To be the platform for shaping enterprise and industry knowledge into new success.” As more and more non-core operations are being farmed out to various vendors, the vendor information and minimizing various associated risks is a very important piece of the puzzle for all financial institution.
Not Resting on Early Success
Passageways launched a new Vendor Management solution last year and met with great success. In less than 12 months, it signed nearly 50 banks and credit unions for its Vendor Management solution. Along the way, this market started to mature, which brought forth new providers, new partnerships, and new functionality. Already, several of Passageways clients went through their audits and reported great success and some very good suggestions for future enhancements.
What makes this opportunity unique is the inordinate amount of interest from other industry providers and associations looking for a partnership on Vendor Management. All this traction in a down economy clearly meant Passageways had a winner on its hands. Passageways team is now actively recruiting partners for reselling its Vendor Management Solution to credit unions and banks.
What’s Next: A new version of Vendor Management is about to be released in the next couple of weeks. In Vendor Management the key to a great set up is having consistent criteria for all facets of the process. This implies a good standard process for all the following pieces, all of which are required in a robust platform:
- Classification of all vendors into the right Risk Categories, using a system driven evaluation process*
- Having a consistent checklist of due diligence requirements and documentation for each Risk Category
- Having the ability to carry forward checklists into the next due diligence cycle for all vendor*
- Ensuring permissions to access sensitive documents is well organized and decentralized so you can involve your team members to gather the necessary due diligence efficiently
- Organizing all your vendor contracts and setting alerts for renewal dates
- Using a consistent method for Vendor Assessments*
- Having a process to record Risk Mitigation steps for each vendor relationship*
- Allowing your staff to informally rank your vendors, to guide your organization through assessing your experience with each vendor*
- Wherever necessary, arriving at opportunities for contract negotiations for the future*
- Gaining insightful reports from information across your vendor pool
The items marked with an asterisk (*) next to them, are included in the new version of Vendor Management. The remaining items are already well handled in our current Vendor Management offering.
Design Breakthrough: Much like in the Products and Services Module, all portals will have a snapshot for each vendor with various sections organizing vendor data such as Contacts, Contracts, Due Dates, Check Lists, etc. This new format will allow customers to make available the best view of their vendor information, to staff and auditors. The success we have had with Products and Services Module with a template for every snapshot will make for much easier implementations as well.
The first version of the Vendor Management Solution Passageways provided last year has been put through a rigorous test. Passageways has identified not only a few areas where it can reinforce some functionality but have also validated several new key areas which need to be added to the existing Vendor Management Solution. Passageways has worked closely with several industry experts including Risk Managers at several banks and credit unions in arriving at a great set of functionality for all existing and future customers.
Passageways believes that vendor data is an important and relevant information base that can be elegantly organized. While arriving at the most complete and simplified functionality for Vendor Management in the industry, Passageways also realized that we may need partners for the following two complimentary services:
1) Document collections services
2) Evaluation of all collected documents to establish Risk Mitigation strategies
Passageways is currently working with a select few industry specific partners for the above activities and will be making some key announcements in the near future. These partnerships will allow Passageways to be the platform provider and yet give you the ability to piece together a complete solution using some tested partnerships.
Passageways has made significant investments in the last few months and continues to do so. The results of which will be available for everyone to enjoy in the last quarter of this year, if not sooner.