Survey: 59% of Organizations Do Not Have Vendor Management Program in Place
A survey of banking and mortgage professionals from Vendorly found three in five respondents (59 percent) said their organization does not have a fully comprehensive vendor management program in place.
The survey also noted of those respondents, one-third (33 percent) said their organization’s vendor management program needs improvement.
The survey had 78 participants and was conducted between February and April. Respondents consisted of banking and mortgage professionals with one-third from mid-sized banks ($1-$3 billion-plus produced annually in origination volume) and the remaining respondents from small- to mid-sized banks (under $1 billion produced annually in origination volume).
Other key findings:
–When asked about the biggest challenge their organization faces within vendor management, more than one-third (36 percent) of respondents identified employee capacity to handle workload or vendor management as the greatest challenge.
–Among survey respondents, 40 percent said their organization has three or more full-time employees dedicated to their vendor management program with 39 percent stating they have less than three.
–Nearly half of respondents (44 percent) said their organization is responsible for managing at least 100 vendors. With this volume of vendors to manage, Vendorly said it was no surprise that the second-biggest challenge cited by professionals was knowing who their vendors are and tracking them (27 percent). When asked how often their organization monitors and assesses vendor performance, 30 percent of respondents said annually.
–Nearly half (47 percent) said their organization does not have a technology solution in place to help manage vendors.
–A large majority (90 percent) believe technology would positively impact their vendor management program and process. Of those respondents, more than half (59 percent) said automation would help increase the efficiency of their program; 41 percent said technology would improve reporting capabilities to executive management and regulators; and 36 percent said it would improve effectiveness of vendor management by mitigating vendor risks.
Jim Vaca, Senior Vice President with Vendorly, said the study demonstrates the need for implementation and enhancement of vendor management programs within the banking and mortgage industry.
“The importance of technology to drive efficiency, increase due diligence and further improve an organization’s vendor oversight processes is becoming a realization for many,” Vaca said. “Even though many have identified the need for a vendor management solution, a surprising number have yet to adopt or implement the technology.”
