Key Vendor Tips and Takeaways–From the Experts Themselves

Who’s still buzzing with vendor management tips from our in-person event, The Strategic Importance of the Vendor Master File?

If you missed it, you are probably very sad. We don’t blame you. There is only one “first time,” so we’re sad for you too!

Fret not, for we have gathered tangible takeaways you can back to your team.

You can also catch up on live event coverage here, here, and here.

Below is part one of a summary of key takeaways. Enjoy, implement, and start moving towards that ideal state in vendor management.

Takeaway #1: Support from Leadership is a Non-Negotiable

Let’s face it. The vendor desk is understaffed, underpaid, and underappreciated.

In fact, a typical salary for an Accounts Payable Specialist breaks down to $12-$15/hr., according to Debra Richardson of Debra Richardson LLC. That’s what Taco Bell employees make–and they get free food!

Like the U.S. Mint Police guarding the country’s gold at Fort Knox, vendor maintenance is the new frontline against vendor fraud. Yet, vendor desk staff get paid like fast food employees.

Something’s wrong and it needs to change. That’s where executive support comes in.

Your organization’s executive team–and other departments affected by your work–must know how critical your role is.

Vendor Management Tips and Action Items

Host regular lunch n’ learns/brown bags. Invite leadership teams and other departments who are affected by your work. Show them what the vendor desk does and why this work is critical to the entire organization. Share data about fraudulent activity that your office has experienced/mitigated, as well as the state of vendor fraud in the U.S.
Tell human stories. Collect the story behind each fraudulent activity: what the fraudster tried to do and how you missed or stopped it. Share what you see in the news. Human stories get attention. Build up an arsenal of stories to tell when speaking with leadership.
Present your protocol to your leadership. Show them your process, how often you actually follow it, where pressure to make exceptions comes from, e.g., name names, and what is at risk if pressure for exemptions continues.

Takeaway #2: Protecting Against Fraudsters is Getting Harder to Do

A chilling statement: “The pandemic indoctrinated an entirely new generation of fraud actors.”

This came from Linda Miller, CEO of Audient Group.

These days, fraudsters don’t have coding skills. They can buy SaaS on the dark web, rent a bot for the day, and access low-code or no-code technology to help them carry out fraudulent activity at scale.

In other words, the barriers to entry for fraud have reached an incredible new low. And unfortunately, most organizations don’t understand how adversarial these threats are.

Scams are also becoming more sophisticated with voice technology. Fraudsters don’t just rely on email anymore, they use voice spoofing technology for phone and video calls. They spoof phone numbers. They text.

Expecting the vendor desk staff to keep pace with the ever-changing fraud schemes and tech is an impossible task. And with no help forthcoming at the federal level, organizations need to defend themselves.

Action Items

Have a written process in place. Check if you even have one. Go on, I’ll wait. If you do, bravo! Dust it off and update it if you haven’t yet in 2023. If you don’t have one, make it your goal for this quarter. Capture the process in written form. Call it a policy. Treat it as such.
Run your employee list against your vendor list. Someone might try to create a fake company and pay themselves. Linda Miller’s thoughts on this? “I haven’t seen an organization yet that didn’t find something fraudulent when they did this exercise.” Your own people know your process better than anybody, so they know how to beat it.
Audit and be truthful. Gather your team and ask, “What is our written process v. the process actually in action?” Identify areas where there’s a gap in technology, where there’s not a streamlined process, or where you’re relying solely on a single person.

Takeaway #3: The Ideal Vendor Management State Is Possible

As the saying goes, you can’t be what you can’t see.

The ideal state in vendor management does exist and can be possible for your team. You just need to visualize it first.

That’s what we had our panelists do.

If all processes were optimized, if you were caught up on everything, what would you get to do or think about? What data would you collect?

Here’s what our panelists had to say. You can glean several vendor management tips just from their answers.

People-growth. “I measure my success in seeing someone who started as a File Clerk or Document Specialist go on to a senior position because there was growth and opportunity. My vision is to orient my team and all the teams that touch it.” Amanda Lockhart Davis, Director of Financial Disbursements, UVA
Data on supplier diversity efforts, sustainability efforts, and social responsibility. “When that data is good, I can’t imagine all of the insights I can pull.” Adeline Coe, Interim Assistant Director of Procurement & Supplier Diversity Services, UVA
Invoice history data, fraud/risk data. “Our hope is to get to the point where we can help you figure out how much you’re spending on state v. federally diverse businesses, where strategic initiatives are not being supported.” Grace Mabie, PaymentWorks

H3: Action Item

Gather your team and brainstorm about your ideal vendor management state. What would your days look like? What work would you be doing? What data would you collect? How might you interact with leadership and other departments?

Want More Vendor Management Tips and Takeaways?

We have your back. Below are several resources with plenty of additional best practices and tips to help you improve your vendor management processes.

Vendor Onboarding in 2023: Three Predictions

Business Payments Fraud in Times of Chaos

10 Questions to Determine if Your Vendor Management Process Needs an Update