Benefits of having an effective vendor management system

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The new age business processes make use of data and communication tools within and outside the organization to facilitate improved, instant communications. The medical and healthcare sector today is getting more dependent on business solutions and skills outside their core business areas for business growth and expansion.

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Benefits of having an effective vendor management system

  1. 1. Benefits of Having an Effective Vendor Management System The new age business processes make use of data and communication tools within and outside the organization to facilitate improved, instant communications. The medical and healthcare sector today is getting more dependent on business solutions and skills outside their core business areas for business growth and expansion. Furthermore, globalization has made it easy for the vendors to be engaged in various business transactions thereby gaining access to critical business data, private health information of the workforce and many more. Vendor Management System (VMS) can be defined as a discipline that has become an integrated process for the overall business management in an organization. Therefore, the privacy and security of data access and transfer has become more crucial than ever. Effective vendor management process helps organizations to monitor costs, achieve service excellence, and also understand and mitigate the risks involved in data sharing with the third party solution providers. Therefore, the ability to have a clear understanding of the multiple aspects in an outsourcing lifecycle helps in determining the success of vendor management. Service providers in the medical and healthcare sector, like the insurance clearing houses, organizations managing healthcare solutions and carrying out clinical trials using PHI (Patient Health Information), directly or indirectly are known as a “Covered Entity” or “Business Associate”. The big and small medical providers and hospitals needs to fulfill the HIPAA/HITECH compliance guidelines to maintain IT security and compliance. For this a systematic vendor management process needs to be implemented. Advanced Vendor Management Solutions Keeping all these aspects in mind, service providers of compliance management solutions have come up with advanced vendor management solutions to ensure that a medical company and its outsourced vendors stay compliant. The solution helps to: Automate the monitoring of technical controls and sensitive data. Monitor risks with a Vendor Manager. Evaluate vendor risks by using multiple assessment types and library of questions depending on the best practice standards. Attain risk, IT security and compliance by rating vendors from assessment results. Assess vendor compliance to procedures and regulations. Track and identify non-compliance areas. Modern economic development has propelled most medical organizations and healthcare providers to focus on the risks regarding supply chain and their services. Simultaneously, with the enactment of new compliance policies organizations are giving more importance to manage their vendor and compliance issues effectively. Hence, a systematic vendor management system is beneficial for attaining growth, monitor revenues and reduce risks from all business units. Read more on - Information Security Compliance, IT risk assessment methodology

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