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» VISIT US ONLINE @ DSNEWS.COM 69 of Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) present ongoing challenges to establishing standardized business requirements. However, technology providers are working with industry organizations to develop acceptable standards for items such as background checks and required certifications. As the industry continues to work closely with technology partners, we are seeing technology platforms that are able to analyze multi-faceted business processes, identify vulnerabilities and pain points, and then, effectively, fill any gaps in those processes. e industry is embracing the efficiencies that automation brings to compliance challenges. Strong partnerships with technology providers are supporting the efforts of vendor management teams to achieve process improvement, track regulatory changes, and meet network management and compliance requirements. Technology provides vendor management departments with the means to centralize data collection and management, configure customizable vendor pricing and assignment methodologies, and to proactively analyze and resolve performance and compliance challenges. While aspects of vendor management will always include tactile practices like inspections and preservation work, the benefits that automation, mobile technologies and analytics provide is vital to improving a business's ability to compete. By standardizing processes such as background checks, vendor managers can drive efficiencies by reducing administrative tasks and improve the stability, consistency and efficiency of their network. QUALITY CONTROL AND PERFORMANCE REPORTING An effective vendor management strategy must include stringent quality control measures that focus on preserving the asset and minimizing business risk. To meet compliance requirements, vendor management teams need to ensure that their third-party vendors are providing quality services on a consistent basis. Additionally, performing quality control measures are essential to maintaining vendor network stability. Technology platforms add a layer of oversight that promotes quality control checks by identifying inconsistencies or conducting random audits of work order results. Vendor managers can also choose to deploy external quality control efforts that take place in the field such as a quality control inspections. A quality control inspection involves the re-inspecting of a property. e re-inspection can be conducted by internal team members or another third-party vendor to review the initial inspection. is second team ensures that the initial inspection, maintenance or securing work meets client expectations and regulatory requirements. is allows vendor management teams to identify performance issues and continuously improve their vendor networks. By implementing quality checks in the field, vendor management departments are able to manage costs, reduce the occurrence of code violations, and the need for repairs due to unsatisfactory work. Some clients require vendors to follow a specific set of requirements before work order results are accepted. In such cases, quality checks are conducted by specialized teams to monitor quality, compliance, and adherence to timelines. is work involves performing quality control audits around client guidelines to ensure a property is in acceptable condition prior to submitting work order results. If there is an issue with the quality of work completed by a vendor, a performance review is conducted to determine what action should be taken to correct the problem. Performance reporting involves creating and executing corrective action plans that are closely monitored. Technology platforms can collect, monitor, and flag data to ensure that vendor work is performed and completed in accordance with agreed upon client requirements, municipal ordinances, and regulatory guidelines. Business rules within technology systems can quickly identify inconsistencies in processes, work order results and compliance with client guidelines. e goal of an internal quality control team is to identify inconsistencies within the vendor process and expedite corrective action for any infraction. Additionally, these teams drive vendor performance through heightened expectations and detailed performance reviews. Performance reporting involves the review of vendor scorecards and the designing of a performance improvement plan based on peer rankings of scorecards. A poor performance review can trigger vendor management teams to require additional training or participation in vendor improvement programs. Periodic training in the form of policy and procedure reviews, in-field training, online learning modules, and conference attendance are available to vendors. THE ROLE OF TECHNOLOGY IN VENDOR MANAGEMENT Vendor management programs are especially benefiting from the scalability that technology provides. A secure technology solution can accomplish more than the required processing of work order results, they are enabling teams with a consistent supply chain management process. Users are able to secure and store pertinent documentation, track expiry dates for required insurance and licensure, analyze and collect diversity information, and review client and regulatory guidelines. Vendor managers can review communications between parties, distribute vendor alerts and track ongoing vendor training on industry and client guidelines. Some technologies allow vendor management departments to have the clear line of sight capability needed for managing third-party relationships at all levels. Vendor management teams are increasingly using data developed from mobile technologies to monitor compliance and quality control. Additionally, industry stakeholders from servicers to field services providers, can activate permission- based access to communication channels, work order results, and vendor qualifications including the presence of pertinent background checks, licensing, certifications, references, and insurance. Near real-time management can be achieved with point-of-service features. Technology is helping the mortgage servicing industry meet the expanding needs of vendor management professionals. Today's technology platforms provide a central hub for all of the tools required to successfully execute a vendor management program. As regulators require transparency into operational processes and the retention of all documentation associated with vendor relationships, the industry is finding that technology providers are helping them to optimize internal operations and improve processes while reducing costs and business risk. COVER STORY INDUSTRY INSIGHT INDUSTRY INSIGHT INDUSTRY INSIGHT

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