Vendor Management Interview with IT Director of a Bank
Posted under: Vendor Management
Bill Kane is the Director of IT at Boston Private Bank & Trust Company. A few years ago, we developed a vendor management application for the bank’s use, which later became the basis for VendorRisk. We asked him a few questions about their rationale for establishing a vendor management strategy and how the application has assisted their efforts.
Why did your organization first implement a vendor management program?
Bill: We realized the need to implement a formal vendor management program as Y2K approached. It was clear back then that we needed to fully understand the relationships we had with our vendors so that we could prepare for the unknown. As it turned out, Y2K came and went with very little impact to our organization. However, the exercise of accumulating vendor data was invaluable as it created the foundation for new vendor management processes.
Please describe your vendor management process prior to having the web-based application.
Bill: Prior to a web-based vendor management system, information regarding vendors was very fragmented. It resided in file cabinets, Excel spreadsheets, Word documents, Access databases, etc. There was no consistency in the way the information was stored and it was a challenge to produce information about vendors. The process of managing a vendor relationship was not clear. Responsibilities were not understood and the information required of vendors to effectively manage the relationship was not known.
What advantages/benefits have you seen since moving to the web-based app?
Bill: The web-based application completely redefined they way we view vendor management. With the system, we were able to combine all vendors, contracts, software, and services into one database and build logical relationships between them. Since vendor management is a distributed function in our organization, it was critical that the system could be understood and used by individuals throughout various business lines. The web-based application’s ease of use simplified the process of tracking vendor information and managing on-going vendor activities such as contract expirations, watch lists, and vendor reviews.
How has the application assisted with presenting information to the auditors/regulators?
Bill: Regulators have placed high level of importance on an organization’s ability to display that vendors are being managed effectively. The web-based application is the tracking system for all vendor information. With the system, we can easily communicate to auditors and regulators the risk of each vendor and the due diligence activities performed. The reports we generate using the system allow our organization to quickly respond to audits and examinations and provide comprehensive and current information in a usable format.
How many employees participate in the process, how did you convince them of its need, and how often do they interact with the app?
Bill: The application is used by over 50 employees in our organization throughout every line of business. It was originally employed as an organizational priority with senior level management support. The system provides our organization with a holistic view of the documentation and activities surrounding vendors, contracts, software, and services. Vendor management is an on-going process that requires a methodical and diligent approach. Our organization uses the system on a daily basis to manage and maintain a successful vendor management program.
