The Benefits of Using a Vendor Management Platform

Paper with words Vendor management and charts.

The vendor management system comes with a host of benefits for the community managers

Key takeaways:

  • Finding and hiring reputable service providers can be challenging.
  • Using a vendor management platform keeps everything in one place.
  • The platform also handles compliance vetting and comparisons.

Community managers often have a lot on their plates. They oversee the property’s day-to-day operations and need to find and hire reputable service providers. 

But, finding the right vendors and monitoring their performance and messaging is often the biggest challenge. 

Typically, the traditional procurement management practices may struggle to accommodate external workforce management. They need to hire vendors with the right qualities

It’s even more challenging for community managers who may not enjoy the same perks of hierarchical support, talent, and best practices in management as their mainstream corporate leadership peers. This leaves a lot to good judgment and experience, which may sometimes not work as expected. 

Community managers bare a lot on their shoulders; handling the day-to-day vendor needs is often overwhelming. This is because there are many factors to consider when vetting vendors. Do the vendors have the relevant insurance and license? Do they have a good reputation and are they offering competitive prices? 

Challenges that community managers face with vendor management

Keeping track of all the different vendors the community needs to hire isn’t a walk in the park for anyone, not just the HOA community managers. There’s the challenge of vetting the vendors to ensure they are reputable – a problem. 

If it’s a large community requiring the services of a wide range of vendors, determining whose services are suitable for the association and where replacement is vital is also not easy. The community must retain the best services to reduce the costs of hiring. 

Other challenges include difficulty in comparing prices and finding the best deals. Can the association trust the vendor who is offering the best prices? Are they compliant with the relevant regulations and standards? 

How your community can benefit from a vendor management system

A vendor management system (VMS) helps community managers find, vet, and manage service providers. The system takes some of the work off the community managers’ plate by helping locate vendors, vet them for compliance, streamline communication, and compare prices. 

The vendor management platform also provides real-time risk monitoring and assists the association. In a nutshell, the platform enables community managers with:

Assisting with vendor location

The vendor management system can help locate the right vendors for the community who do a good job and contribute to a better margin for the community.

The system will help the manager locate vendors in their area by providing a central repository for vendor data. This data includes contact information, service offerings, and pricing. A VMS also offers tools for comparing vendor data, which can help managers make informed decisions about which vendors to use. The system supports an efficient and speedy vendor hiring process.

In addition, a VMS often provides features such as a request for proposal (RFP) management and contract management, which can streamline the vendor selection process. It is vendor hiring in one place.

Vetting vendors for compliance

Hiring vendors who pose a potential compliance risk can place the community in an uncomfortable situation. If the vendor’s certificate of insurance is not up to date, this could mean the community is responsible for any damages, injuries, etc. that occur while the vendor is working on the premises.

Handling and manually checking the different documentation to confirm compliance or qualification to offer services is arduous. Most managers prefer to go with the next best vendor to escape the process. 

The VMS can help check vendor licensing and insurance and may offer background checks as well. This helps avoid unqualified suppliers that potentially put the community on the spot with the regulatory regime.

Streamlining communication

The vendor management platform can help streamline communication between the community manager and the vendor because all communication will be in one place. The manager can send one message that informs all the vendors of a significant event or activity. This feature reduces communication costs and miscommunication. 

With all vendor communications in one place, the manager can avoid the hassle of tracking down vendor contact information or keeping up with multiple conversations.

Tracking performance

A vendor management system can help keep track of vendor performance and compliance. By tracking vendor performance, the manager can identify issues early on and take corrective action before they become significant problems. 

Similarly, tracking vendor compliance ensures that your vendors meet your standards and avoid costly penalties. 

The system offers greater visibility into the vendors working for the community. Which facilities do they have access to, and what is their value? Is the vendor output worth the cost? 

This transparency helps the manager make the right vendor hiring decisions. The manager has a threshold established from working with various vendors and knows what to expect from reliable services. 

Comparing prices

Different service providers will have different prices for their services. Without a system for managers to confirm pricing, getting the best deal may be an uphill task.

The vendor management system can help compare the prices of different vendors, and community managers can be sure they are getting the best deal. The community can then make the right savings and invest in other important things, all to the benefit of the members.

Getting real-time updates on work progress

The vendor management system captures and monitors every little detail related to vendors. This helps managers stay on top of things and avoid any potential issues that could arise.

A VMS allows the manager to keep track of vendor performance. They can leverage this information to make informed decisions about which vendors to use in the future.

Let Experts Handle Your  Vendor Management System Today!

The bottom line is that a vendor management system can save you a lot of time and hassle. It can also help you avoid poor services, compliance, and a declining bottom line. 

A vendor management platform helps community managers by providing a central place to find, vet, and manage vendors. This has significant benefits for the association. 

Our team at VendorSmart is just what you need to get the best out of your vendor management system. We believe you should get value for your money without compromising quality. Give us a call at (954)329-1406 to request a quote.