Have you ever received an invoice from a vendor you’ve never heard of?
Of course. You check the master file, but it’s not there. And it’s due in 30 days. Just kidding—it’s due by the end of the week. Last week.
If you’re lucky, the buyer’s name is noted on the invoice. Or maybe the buyer is the one that forwarded the invoice to you. Employee buyers mean well, but their focus is on getting what they need for the job they have to do. It’s not on the details required to pay the vendor.
That there are 12 tasks involved in onboarding of a new vendor eludes them, even though you explained everything in a Zoom meeting last month. They don’t have time to think about payment reporting, compliance issues, bank verification or even the need for a correct address. If they need authorization to purchase, that’s as far as it goes for some. Others may go a bit further. And a few conscientious ones try to get everything that’s needed from a vendor, but their own work deadlines interrupt their seeing vendor onboarding tasks through.
Control, efficiency and timeliness are lacking in many of the purchases made throughout an organization. Employees do not understand the importance of correct, complete vendor onboarding. So it’s hard for you to provide the kind of vendor service that ensures good vendor relations. And in these challenging times, you need good vendor relations.
Meanwhile, compliance requirements change. Cyber threats increase. And email has become a favorite tool of fraud perpetrators.
In the critical but “out of the way” task of vendor onboarding and information management, you face:
- Delayed receipt of urgent, critical vendor information
- Inordinate effort involved to obtain vendor onboarding information
- The impracticability of adequate training for the many people involved
- Manual verifications of TINs, addresses, sanction lists and other data
- Exposure of sensitive information transmitted by unsecure email
- Deficient watchlist verification
What can solve these problems? A simplified, secure, easy-to-use set of online procedures can. One that is available to everyone engaging a vendor and usable by the vendors to enter critical information themselves. Such an application can increase control and provide visibility, trackability, security, compliance and efficiency across your wide-ranging operations.
You need a well-thought-out, accessible application that reduces risk, ensures tax and regulatory compliance, provides data accuracy and tracks all activity. It does it securely, protecting sensitive data. And it is independent of your financial platforms, relieving any worries of unauthorized access there.
There is such a tool. It is designed by a team with deep payables process experience. It is an elegant stand-alone, not an after-thought module lost in a complex ERP application. Implementation is quick. Usability is simple. It is flexible and scalable, able to change with you.
It’s VendorInfo, from Financial Operations Networks. To learn more, contact us.