It seems as if someone is coming at you every day with a product or service that is guaranteed to increase profits, at a cost they promise will be minimal. Most of these miracle strategies deliver far less than they promise, and often serve only to increase your employees’ workload and complicate your accounting. But there is one new service that is worth signing up for: vendor screening.
Vendor screening service is a relatively new concept that was developed in response to the proliferation of government rules, regulations, and fines since 2001. Sarbanes Oxley, Patriot Act, SB 657: these have all changed the business landscape. In addition to making sure insurance certificates are up to date and W-9’s are authentic, businesses have become responsible for verifying that the vendors and suppliers they use are innocent of everything from slavery in the supply chain to money laundering by the executives. The time and expense of complying with each and every one of these mandates is considerable—not to mention the task of keeping on top of new legislation to make sure you know what to comply with.
A vendor screening service takes away all the headaches—and the expense, as well. In what is a relatively simple process, they get all the information on your vendors, then do the screening for you. The screening results can be tailored to your specifications, and all the reports are stored in an easy to access web repository, complete with copies of all the documents you need to have available.
Since this can’t be done for free, they naturally charge for it—but they charge the vendors, not you! Vendors pay willingly because it provides an easy way to ensure the reports they give you are accurate and submitted on time. Each vendor pays a fee that is generally under $200, and you pay nothing. Nada. You free up your employees for more valuable tasks, get an easy to use data base with all the information you need on all of your vendors, and save the cost of doing the screening yourself. Isn’t a smart move like that a great way to start the new year?