November 5, 2019 – Check out our latest industry article ("Vendor News & Views") within the Mortgage Bankers Association MBA NewsLink publication. Find the original article from last week HERE
The topics for this edition of our ongoing article series are:
- Some impressive growth of four industry icon vendors, names you know well; But you may be surprised to see WHAT products and services they now have
- And, we also give our thoughts on the ongoing debate: "Is it best to go with big vendors (multi-line), versus a mono-line vendor?"
The article profiles: (alphabetical)
These four have obviously been strategically and steadily adding key offerings, with some remarkable gains in innovation and technology. In all, these four represent nearly 60 vendor listings here on Vendor Surf, the industry's only search engine... the place to be for the RFPs!
While we make it our life's work to relentlessly follow and report upon the service provider market, even we were surprised by the course these four vendors have charted in recent times. Clearly an indication of some strong 'captains' guiding those ever-bigger vessels.
Separately, on to the age-old question of whether or not to go with multi-line (bigger) vendors, versus a vendor that has just one product or service offering (mono-line)... Since 2010, when the Dodd-Frank Act was put into law and an entirely new regulator was hatched – the CFBP – the costs associated with third party oversight and governance have grow from guppy to whale.
A very common perception across vendor managers and procurement professionals is as follows:
- It costs about the same to manage a mono-line vendor as it does the big super-sized vendors. Why is that?
- All vendors require oversight: Monthly scorecards and related calls to discuss results; Issue/problem identification and follow-up actions to drive to closure; Onsite audits once or twice a year.
- So yes, it might be hard to dispute the costs being quite similar.
HOWEVER (and there is always a 'but')... read the article to hear the rest of the story. It may not make sense to rank 'vendor size' near the top of your sourcing mandates, as several other more mission critical requirements should certainly prevail.
The net message – cost should always be a consideration when running your business prudently, but not at the sake of vendor capability, experience and the ability to drive you to better pull-thru, speed, risk and compliance management, etc. Performance is paramount.
Thanks for reading. To learn more about Vendor Surf, the industry's search engine, find our Media Kit HERE