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A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor. Typical features of a VMS application include order distribution, consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes.[1]
In the financial industry due to recent regulations (see FRB SR13-19;[2] OCC 2013-29[3] and CFPB 2012-03[4]), vendor management implies consistent risk classification and due diligence to manage third-party risk. A number of institutions have re-classified or renamed their programs to Third Party Risk Management (TPRM) to align with the verbiage used by the regulatory agencies.
- ^ Staffing Industry Analysts, Inc: "VMS Marketplace Profile", page 1. Staffing Industry Analysts Insight, 2007
- ^ "FRB: Supervisory Letter SR 13-19 / CA 13-21 on Guidance on Managing Outsourcing Risk -- December 5, 2013". www.federalreserve.gov. Retrieved 2016-03-04.
- ^ "Third-Party Relationships: Risk Management Guidance". www.occ.gov. 2013-10-30. Retrieved 2016-03-04.
- ^ "CFPB to Hold Financial Institutions and their Service Providers Accountable > Newsroom > Consumer Financial Protection Bureau". Consumer Financial Protection Bureau. 13 April 2012. Retrieved 2016-03-04.