Last week, I had the chance to catch up With Vendormate's Andy Monin when I was down in Atlanta. For those who don't know Vendormate, Andy and his team focus on delivering solutions that manage supplier compliance and reduce related supply risk areas. Their initial target vertical sector, healthcare, has been quite receptive to the need for these types of capabilities. Fortunately, Andy is also helping his cause by evangelizing the need for compliance, gettting the word out to those in his target market. Earlier this year, as part of this effort, Andy started a blog, Vendor Compliance, in his spare time.
Even though the demands of running a start-up have no-doubt crimped his blogging time, I've appreciated the few entries which he's been able to pen. One of these entries from earlier this summer highlighted a case of a medical equipment supplier who bilked Medicare for "$2.2 million in payments for medical equipment that was never provided to patients." Andy then poses the question to his readers: do you know if you are/were doing business with this company?
Andy goes on to note that organizations often do initial screenings of vendors, but then "gaps in credentialing are created" when a healthcare system or hospital fails to keep its screening and compliance management process current. Unfortunately, this type of gap-creating behavior is not just limited to healthcare.
Perhaps the broader market opportunity for Vendormate -- or an opportunity for similar supplier compliance management solutions from existing or emerging Spend Management providers -- is larger than many thought. Meeting with Andy last week further confirmed that whether it's managing insurance, employment, quality, green or other credentials, supplier compliance is an area where working with third parties-clearly makes good business sense.