What is a vendor risk score?
The vendor risk score is a numerical representation of the level of risk that a vendor poses to a company. This risk is derived from various factors such as the supplier’s performance, compliance, and financial stability. The score enables a company to focus on monitoring those suppliers that have high risk. By means of vendor management software this process can be automated.
Related Procurement FAQs
How often should vendor performance be reviewed?
How does AI help improve vendor management?
How does vendor management software work?
What is the purpose of using a vendor management system (VMS)?
What types of businesses need vendor management software?
What is the difference between vendor management software and procurement software?
How does a VMS help in managing third-party vendors?
What problems does vendor management software solve?