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5 Reasons to Implement a Vendor Management Process

Woman in the maintenance/construction industry. Photo credit: Pexels

If your community management company doesn’t already have a structured vendor management process in place, it’s time to consider one. Vendor management has become a mainstream topic in the community and property management industry.   Management companies must often contact third-party contractors to resolve maintenance issues in residential units or common areas.  Significant emphasis is most commonly placed upon vendor compliance, management efficiency, and enhancing customer service to residents/owners in the community.  Need more reasons?  Read on!   

  1. Improve organization of data

    When you have a solid vendor management process in place, coupled with a software system to handle data management and retrieval, the benefit to your team is a database that lets you easily sift through and manage your contacts’ information.  Increase efficiency of staff by having one central place to add, track and manage all information.  The most vital pieces of data you can manage in a database are insurance expiration dates, which vendor is allowed within which community based on specific tasks, and which are preferred vendors versus other types of vendors.       

  2. Simplify due diligence and evaluation processes

    Due diligence is the process by which you evaluate a potential investment or service prior to signing a contract.  Creating a set of standards by which to evaluate vendors simplifies the due diligence process and eliminates those who do not meet the criteria.  Furthermore, legal complications are reduced on your end by contracting with only those vendors that are committed to compliance.   

  3. Resolve maintenance issues quickly

    As information is easily available to your team, selected vendor(s) can be contacted immediately to resolve maintenance issues that arise within the community.  Integrating software into the vendor management process mix can help ease your communications to the vendor, resident, and internal staff.    

  4. Manage costs better

    Following a vendor management process increases the likelihood that you’ll be within your HOA/COA budget as you set expectations on costs, types of maintenance required, and frequency of maintenance.

  5. Maintain a safe and clean community for residents and staff members

    By keeping trusted and meticulously vetted vendors in your circle and within quick reach, you can keep true to your promise of a clean and safe community for residents and staff.  

Think of this process you\’ll create as a way to increase the bottom line, remove inefficiencies,  and allow staff to have peace of mind.  Keep in mind, that a vendor management process is only as good as the implementation of all its working components.  Take a look at the next blog post in the Vendor Management Series: \”6 Steps to Create a Vendor Management Process\”.  

 

Pilera is your all-in-one community management platform for managers, board members, and residents.  Our web portal helps streamline and simplify communications, work orders, rule violations, and activity management processes. The Vendor Management platform, our newest offering, provides managers with a simplified way to organize and track vendor information.  Learn more about Vendor Management as well as our other new features and enhancements in our latest release notes.   

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