Earlier in the month, I had a great discussion with Andy Monin, who started the supply risk management / supplier compliance upstart Vendormate. For those that do not know Vendormate, the two year old vendor specializes in supplier credentialing, monitoring and tracking in the healthcare sector. While the core Vendormate technology could apply to virtually any industry, the founders concluded that the most compelling business need was in the healthcare world. And their hypothesis appears to be correct, as recent demand for the solution in their target market, from what Andy told me, is very high, even though they only signed their first hospital customer in January of this year, just over a year after the company began development.
Vendormate provides a number of benefits to users. First, it captures supplier information through an online registration portal, allowing a common and standard view into supplier credentials for a hospital or healthcare network. For example, suppliers can upload insurance certificates to the system, allowing these to be tracked in a common repository by the healthcare provider. The system can also be used to track both company and individual (employee) information on the supplier level.
Once suppliers register, Vendormate uses 126 diffferent data points in their rating and scoring system -- which each customer configures based on their own thresholds and risk tolerance levels. Relying on verification information from third parties as well as information that suppliers self-provide when they register, Vendormate uses a rules-based probability engine to continuously monitor and alert users to suppliers that may have fallen out of compliance.
Perhaps the largest benefit that Vendormate brings to users is the ability to manage compliance risk through exception. By automating the data collection and verification process, Vendormate lets healthcare procurement and finance organizations focus their energies on more strategic activities, such as contract negotiation as well as drilling down on the handful of suppliers where risk exists. In the coming months, I look forward to continuing to get to know Vendormate and sharing their success stories on Spend Matters. A related vendor that I also plan to investigate in more detail is Browz, which also offers supplier compliance tracking and monitoring capabilities.