SIG Speaks Blog

Creating Vendor Management Awareness

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SIG University Certified Supplier Management Professional (CSMP) program graduate Zach Green discusses solutions for formally documenting a RACI around governance in the current IRA survey and developing training for governance and vendor management.

I will focus on Week two material, specifically Module 7 – Lesson 1 – Internal-Support. An area that requires improvement in our current Vendor Management Program is awareness, roles, and responsibilities. Program awareness is defined as knowing that a Vendor Management program exists and what the roles and responsibilities are for each stakeholder.

This essay aims to offer a solution or solutions to bring Vendor Management to the forefront of stakeholders' minds when they are considering procuring a new supplier and revise our current process to raise a clear understanding by implementing our RACI Matrix in a new way. 

The first step is to ensure Executive Sponsorship. This step is critical to our governance program as this shows the rest of the company (Legal & General America, Inc.) that senior leaders are aware of our initiative and support our efforts. Second, executive leadership buy-in will give added weight and authority to the program. Lastly, by obtaining Executive Sponsorship, Vendor Management will align with our corporate objectives. 

Once Executive Sponsorship is complete, Vendor Management will establish a RACI Matrix. This process is listed within our Vendor Management policies. However, the approach is located on our company intranet site. Given the location of our course, employees may need help finding this information. My recommendation is to begin incorporating the RACI matrix into our Internal Risk. 

Zach Green, Vendor Management Analyst,Legal & General America, Inc.

Utilizing Third-Party Relationships

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SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Charlie Swartwood shares his description of important elements in an effective and efficient third-party risk management program and how he plans to make good use of them in his firm.

Charlie Swartwood, Vendor Compliance Advisor, Hyland Software Inc.

Change Management/Sourcing Change Management

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SIG University Certified Sourcing Professional (CSP) program graduate Andrew Beck shares the difficulties associated with change management in sourcing and how it can help improve inefficiencies.

Andrew Beck, Capital Equipment & Construction Buyer, American Honda Motor Co., Inc

Corporate Market Data Renewal

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SIG University Certified Sourcing Professional (CSP) program graduate Jason Feldman provides an example of  corporate market data renewal and how it applies to sourcing.

As part of the CSP course requirement, I wish to apply some lessons from this ten-week course and explain my role as a Strategic Market Data Sourcing executive at The Bank of New York Mellon Corporation. I plan to take us through a corporate market data renewal example and will touch upon course material from ‘Week 2’ (Strategic Sourcing_2020) and ‘Week 9’ (Cross Functional Teams_2020).

Financial Market and Reference Data are data issued by a trading venue or a data supplier, such as a stock exchange or a private company label, to inform traders, analysts, bankers, and investors about the latest prices of financial instruments such as shares, derivatives, commodities, indices, and currencies. The data provided may be real-time-delivered, historical, or a combination of multiple time series. 

Look at an upcoming contract data renewal for services utilized within the Bank of New York Mellon Investment Management organization. The data analyzed are benchmark indices used for portfolio management, data analyses, and reporting on external client portfolio holdings. 

As the strategic procurement negotiator for this renewal, there are multiple hats to be worn, and I will start by building a cross-functional business team consisting of the following:

Jason M. Feldman, Market Data Sourcing and Vendor Management, BNY Mellon

LavenirAI x SIG Procurement Metaverse Partners

LavenirAI x SIG Procurement Metaverse Partners

LavenirAI and SIG (Sourcing Industry Group) are excited to announce their new partnership as LavenirAI becomes the Procurement Metaverse Partner for SIG’s Global Summits. The partnership is a significant milestone for both LavenirAI and SIG as it highlights leadership in delivering Metaverse-ready technology to the Procurement world.

As the Procurement Metaverse Partner, LavenirAI will collaborate with SIG to bring cutting-edge technology to Procurement events, starting with the Procurement Technology Summit in Florida in April 2023. LavenirAI's technology will enable attendees to experience an immersive virtual environment that facilitates collaboration, engagement, and knowledge-sharing.

The partnership reflects the future importance of the Metaverse in professional development. As the world continues to shift towards remote work and virtual events, virtual training platforms like LavenirAI's are becoming more critical for professionals seeking to advance their skills and knowledge.

LavenirAI's partnership with SIG highlights its commitment to delivering the latest innovations and technologies to the Procurement profession. The partnership represents an exciting opportunity for LavenirAI to expand its reach and further establish itself as the leader in the Procurement training field.

The Metaverse has the potential to transform the way professionals learn and collaborate, providing an immersive and engaging environment that enables them to develop their skills and knowledge in a more interactive and efficient way. LavenirAI is at the forefront of this change, delivering Metaverse-ready technology for Procurement and helping professionals stay ahead of the curve, through on-going development opportunities.

Clive Heal, Founder & CEOFounder & CEO, LavenirAI

Becoming Familiar with Third-Party Risk

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SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Mitchell Gustafson describes why becoming familiar with third-party risk management is so crucial for your business team.

All companies rely on a third party, if not multiple. Therefore, it is critical to pick the right ones. Choosing a third party aligned with your company’s third-party risk framework and understanding your company’s overall objective will make your organization more robust and competitive in the long run. I will begin by defining what a third-party is and then shed light on these topics: the main drivers of third-party risk management, the steps of third-party lifecycle management, and why third-party risk is often overlooked.

A third party is a business relationship between your company and another entity that is not your customer, including an affiliate company. When we think about third parties, we are usually thinking about vendors. Other examples can be service providers or outsourcers. In this Global environment, corporations are engaging with countless third-party’s to complete their business needs. Unfortunately, with every third-party arrangement comes an ever-growing scope of risk. As more and more companies begin to rely on third-party relationships, effective risk management, due diligence, and continuous monitoring need to grow with it.

Mitchell Gustafson, Third Party Risk Analyst, NationsBenefits

Understanding and Implementing Successful Spend Analysis

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SIG University Certified Sourcing Professional (CSP) program graduate Andy Jacobs shares how important it is to understand spend analysis by assessing your suppliers and stakeholders.

Andy Jacobs, Category Analyst, Border States Electric

Why organizations need to adopt an Integrated Third-Party Governance and Risk Management approach?

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SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Jai Chinnakonda shares why every organization should adopt integrated third-party risk governance and management into their team structure.

Organizations increasingly depend on third-party service providers of varying sizes, including start-ups, to meet the digital age challenges of technological innovation and heightened competition. In a quest to succeed, organizations involved in digital transformation initiatives partner with more innovative start-ups, thereby increasing third-party risk. There is a progressive shift from a traditional 'cost' focus to a 'shared risk' and 'value-driven partnership.

This is also a growing reflection of organizational recognition that third parties can create strategic win-win opportunities. These new-age partnerships require a different approach to managing third-party risks. Organizations that can continuously monitor and take on calculated risks with their engagement with third parties are the ones that will be able to Stay Ahead. This article reflects on how technology can help support a new Integrated third-party governance and risk management approach.

Traditional Third-Party Risk Management Approach – the challenges 

Traditionally, organizations had relied on total upfront due diligence for risk mitigation. This approach attempts to identify potential third-party risks upfront before contracting, resulting in longer onboarding time. Typically, this involves sharing due-diligence questionnaires and collating responses from third parties. This only provides a point-in-time assessment – a highly ineffective approach prone to failures.

Jai Chinnakonda, Co-founder of ENGAIZ, ENGAIZ Inc.

The Art of Establishing Trust

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SIG University Certified Sourcing Professional (CSP) program graduate Krollus Asaad shares how important it is to find trust in your procurement team and your business.

Krollus Asaad, Co-Op Procurement Analyst, The Bank of New York Mellon

Managing Third-Party Risk Resources

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SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Elizabeth Marquez shares what she has found helps with managing third-party risk resources and how to apply these concepts.

Elizabeth Marquez, Risk and Controls Advisor, USAA