Vendor management in 2026 is more critical than ever. Increased third-party risk. Compliance changes. Far-reaching digital transformation. It's all cause for a shift in strategy. What's more, there are very real consequences to poor vendor oversight. Breaches and compliance failures could leave your organization's reputation and standing at risk. According to a 2024 study published by Prevalent, a whopping 61% of organizations reported a third-party breach or security incident in the past year1. Thankfully, a robust strategy and vendor management software tools can help address modern vendor management challenges!
#1 – Vendor Q&A, Rating, and Scoring
The more vendors onboarded, the easier it is to overlook key vendor analysis steps and vendor risk variables. Automated and AI-based tools for vendor Q&A, rating, and scoring help continuously assess vendor performance and risk. Structured questionnaires and dynamic scorecards enable users to make informed and well-reasoned decisions about whether to proceed with a given vendor. Integrated vendor management software allows users to easily track KPIs such as compliance rate, delivery timelines, and risk indicators, thanks to custom and ad-hoc reports and AI-powered risk assessment tools. Users can also leverage these features to automate reviews with workflow automation and store audit-ready records in an easily searchable repository. These features are particularly useful for compliance frameworks that require ongoing supplier monitoring, such as ISO 27001:2022 Annex A, Section 5.22.
#2 – Sanctions & Compliance Screening
According to OFAC enforcement data, regulatory fines for non-compliance with sanctions screening can reach millions annually2. Continuous monitoring and the automation of recurring checks and alerts can help with regulatory compliance and risk mitigation. Leading solutions for vendor management allow for scheduled checks for compliance, such as OFAC search compliance, and can support adherence to frameworks such as SOC 2 CC9.2 and ISO 27001:2022.
Stay on top of risk with ad-hoc and scheduled audits in vendor management software. It could save your organization millions - as well as its reputation.
#3 – Vendor Certificate of Insurance (COI) & Other Vendor Data
Vendor management software can improve COI management (or the management of certificates of insurance) and the management of other documents by allowing organizations to import, store, manage the expiration of, track data, and run reports on COI and other vendor documents.
Vendor management software centralizes storage for COIs and compliance documents. Documents are easily searchable down to the sentence, key term, or even word level. "Did you mean...?" functionality, saved searches, search history, and numerous options for filtering searches make locating mission-critical assets, such as COIs, a breeze. Rules-based workflows and one-off tasks alike can be facilitated with automated alerts for expirations, renewals, and more. Numbered version tracking and full audit trails can be maximized for ISO and SOC compliance.
PRO TIP: It's recommended that organizations use integrated vendor management and contract lifecycle management software for comprehensive visibility into vendor-related processes across legal, contract, and procurement teams.
Upgrade Your Vendor Management Process
Third-party breaches are rising as technological advancements explode with unruly and steady speed and magnificence. Common compliance frameworks, such as ISO 27001:2022 and SOC 2, require documented supplier oversight and a firm grasp on all things vendor management. Organizations and regulatory bodies alike expect real-time vendor visibility - not annual spreadsheets.
So if you want to supercharge your vendor management, do not hesitate. Book a free demo of CobbleStone’s award-winning and scalable contract management, vendor management, eProcurement, and eSourcing software suite today!
