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.
Successful supplier identification, qualification, and onboarding require a stringent supplier relationship check. This is important because it drives a long-term relationship with the supplier and the client, not based on cost, price reduction, or specification alignment.
This lesson, to me, is the art of any successful supplier relationship.
However, many procurement professionals and their organizations need to gain these skills. No wonder the relationship with the supplier is shabby, and most times, a one-way approach where the client is always looking for ways to save money and still get quality materials, and the supplier is always looking for ways to increase the price. "Any relationship that is not built on compatibility is a relationship that is heading for a crash."
In this essay, I introduce you to "what" a supplier relationship fit is and "how" to successfully develop a supplier relationship compatibility/fit, implementation, and management.
Supplier: An organization that provides raw materials, products, or services.
Compatibility: the state in which two things can exist or occur together without problems or conflict.
Supplier Compatibility is when an organization that provides raw materials, products, or services shares similar strategic approaches, goals, and objectives.
SIG University Certified Third Party Risk Management Professional (C3PRMP) Program graduate David England has noticed a decline in vendor management teams. He shares his thoughts on how the adoption of third-party risk management strategies by vendor management teams can help position them as a key asset and reverse their decline.
In the C3PRMP program, students focus on best and emerging practices to identify, assess, manage and control third-party risk throughout the lifecycle of relationships, and learn how to align risk fundamentals and frameworks with risk culture to develop the essential tools and controls for effective governance.
There is a growing awareness within the mainstream business community of the importance associated with effective third-party risk management – a capability that has been nicely incubating and maturing within heavily regulated industries, such as banking and financial services, for eons. This increased exposure and attention could be just what is needed to revitalize the flagging vendor management movement.
Many F500 organizations have well-established vendor management capabilities that spawned several decades ago with the onset of strategic process outsourcing and continue today as an effective operational strategy. Many organizations I have consulted with over the past 15 years benefit from these capabilities, which has helped them achieve the value intended from these important vendor relationships. These key capabilities include:
David England, Director, Governance Services at ISG