Vendor Management Program establishment

Innovate Loan Servicing did not have an active Vendor Management program. There were documented policies and procedures but not communicated or enforced. Each department was selecting and establishing contracts and services through vendors, but not centrally managed, vetted or financially tracked.

While VP of IT I conducted a review of all vendors and reviewed all services and contracts. We identified redundant services and those that were not aligned to our new IT Strategy and began to eliminate contracts and affiliated costs. This resulted in a reduction of over 30% of the annual spend, while simultaneously improving the overall security, availability, scalability and capabilities of technology solutions.

Because of the successes with Technology Vendor Management I was asked to conduct a full review of all Vendors in Operations, Accounting, Reporting and Risk. This culminated in the build of an actual Vendor Management Program complete with improved and communicated policies and procedures. We developed an automated tracking system to identify contract renewals, periodic reviews of value of each contract, ensure effectiveness and delivery of results defined in each contract and identify possible changes to suppliers or elimination of specific vendors where alternative options existed.

Ultimately, we reduced the total numbers of vendors across the organization by over 40%, reduced costs by over 35%, improved regulatory compliance adherence to eliminate fines and other risks and improved operational effectiveness and efficiency.