Get Practical Guidance and Formulate a Winning Business Case
Building a business case to purchase a vendor risk assessment tool is a big deal. You’re trying to alleviate pain within the organisation…most likely pain that you’re experiencing every day. On the other hand, your executives need to understand how the costs involved will ultimately benefit the company.
So where do you start?
With years of experience Ed Thomas, VP of Marketing at ProcessUnity has collated data from a number of client engagements and subsequent deployments of ProcessUnity’s Vendor Risk Management tooling to help TPRM executives build a more rounded and quantifiable business case for the introduction of Third Party Risk Management automation.
Building the Business Case for a Third Party Risk Management Tool provides a concise guide to 4 core practices:
- Defining Opportunities for Improvement through Data Collection
- Outlining your High-level Goals for Cost Avoidance and Efficiency
- Quantifying the Benefits with concise Metrics and Cost Comparisons
- Demonstrating Outcomes and Benefits (even the “hard to measure” ones)
Highlighting potential Efficiencies and Cost Savings
Whether you’re understaffed or staffed appropriately, there are benefits to be had if you can reduce the time it takes to complete a vendor risk assessment without sacrificing quality. That’s the business case you are ultimately trying to make.
Based on standard practice and experience with prospective clients and existing customers the following estimates for the current level of effort applied to vendor risk assessments can be built:
In comparison, ProcessUnity has found a various levels success from the deployment of the Vendor Risk Management platform. The potential operational and cost improvements that can be gained from an effective vendor risk assessment automation tools can be significant, as summarised below:
A word of caution: You can ask the software companies you’re working with to help you identify potential savings and metrics, but ultimately, it’s YOUR business case, so you need to be comfortable with the numbers.
Business cases can be a lot of work, but done correctly, they can have great results – whether it is laying the groundwork for a budget request/increase, justifying the case for investment in a technology/service or providing validation of the value an investment has created.
Developing a more specific version of these metrics that suit your current TPRM program and organisation will help to provide the quantifiable business case that executive look for when making significant investment.
Download the Full Guide
If you’re in the market for a Third-Party Risk Management solution, chances are, you’ll need to build a business case. Register now and download Building the Business Case for a Third Party Risk Management Tool and get the support your TPRM program deserves.
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