Why Traditional Vendor Risk Management Is Failing YOU: The Hidden Costs of Inefficiency You Cannot Afford to Ignore
If you are still managing vendor risks with outdated tools and manual processes, you are not just wasting time—you are putting your entire business at risk. In today’s fast-moving digital world, companies are working with hundreds, sometimes even thousands, of third-party vendors and suppliers. Yet, many continue to rely on traditional vendor risk management (VRM) methods that are packed with inefficiencies and manual tasks that overwhelm both managers and cybersecurity experts.
The reality is, that these manual processes are costly, time-consuming, and often lead to missed risks. Think about all those endless email chains and spreadsheet-based assessments—organizations are burning valuable hours and creating unnecessary delays when managing third-party risks. Even worse, the hidden costs add up fast: lost productivity, increased security threats, and compliance penalties all make your business more vulnerable.
But you do not have to keep struggling. Supplier Shield’s managed Third-Party Risk Management (TPRM) services are here to turn things around. By automating vendor risk assessments, real-time monitoring, and compliance reporting, we help you cut down on manual work, save precious time, and protect your business from hidden threats.
Imagine having the peace of mind that comes with knowing your vendor risks are fully managed, giving you more time to focus on growing your business. Ready to better take control and protect what you have worked so hard to build?
The Hidden Inefficiencies in Traditional Vendor Risk Management
It is no secret that traditional vendor risk management (VRM) is riddled with inefficiencies. In fact, the 2024 Global Risk Survey from PwC found that over 70% of companies lose significant time because of manual risk management processes. That is a huge number—and it shows just how much time and effort is wasted using outdated methods. A study by nShift backs this up, showing that relying on manual processes leads to delays, errors, and increased costs across the supply chain. So instead of protecting your business, these old systems often slow you down and leave you more vulnerable.
And in a world where third-party vendors are crucial to your business’s success, these inefficiencies can quickly snowball into bigger problems—like financial losses and security risks.
The Burden of Manual Processes
Let us face it: managing vendor risks the old-fashioned way is a hassle. From the initial vendor risk assessment to ongoing risk monitoring and compliance checks, organizations are often mired in tedious, manual processes; it is a never-ending story. We are talking about sending out countless emails, chasing vendors for information, populating spreadsheets, and collating data for reports. Each task consumes valuable time, and the reliance on manual input introduces a higher risk of human error. In fact, various studies (SiriusDecisions, McKinsey, Procurify) suggest that manual processes contribute to errors in up to 30% of vendor assessments. That is a lot of room for things to go wrong.
As a result, vendor assessments, risk tracking, and reporting become slow and cumbersome. It is no wonder risk managers and cybersecurity experts get bogged down by the sheer volume of work—they are buried in admin tasks, leaving little time for actually managing risks. The result? Decision-making is delayed, and critical risks are often overlooked simply because the team is too overwhelmed with managing the minutiae of the process. This inefficiency creates a dangerous gap in risk oversight, where businesses may not catch a vendor’s vulnerability until it is too late.
Outdated Tools: Built for Another Era
On top of that, outdated tools such as spreadsheets and fragmented systems only compound the problem. Many organizations use tools that were not even designed for vendor risk management—they have been repurposed from general office applications. Sure, spreadsheets are fine for basic calculations, but they are not cut out for complex risk assessments, vendor scoring, or keeping track of dozens (or hundreds) of suppliers. Data can easily get lost in version control issues, and tracking risk levels across multiple vendors quickly becomes a logistical nightmare.
Fragmented systems that are spread across emails, shared drives, and disparate tools create silos of information and disjointed workflows. Without a central hub for vendor risk data, organizations lack a unified view of their vendor ecosystem. This leads to disjointed workflows, poor visibility into vendor risks, and inefficiencies that slow down the entire risk management process. Managers and cybersecurity professionals end up spending more time piecing together information rather than proactively mitigating risks.
Lack of Real-Time Monitoring
Another big problem with traditional VRM tools is that they only provide a snapshot of a vendor’s risk based on periodic assessments—meaning they are looking at the past, not the present. But in today’s fast-evolving threat landscape, a vendor’s risk profile can change overnight due to emerging cybersecurity threats, operational disruptions, or compliance violations. Unfortunately, without live monitoring, businesses are often blindsided by new risks. By the time a problem is flagged, the damage may already be done.
This lack of real-time visibility leaves organizations vulnerable. A vendor may seem compliant and secure one month, only to suffer a major data breach the next. And without a system in place to track these shifts in real-time, businesses cannot act swiftly to contain the risk. In today’s world, waiting for periodic check-ins just is not good enough.
The Hidden Costs: Paying More for Less
On top of these inefficiencies, many organizations face the added frustration of hidden costs associated with traditional VRM tools. One of the most common complaints is that they are forced to pay more for features they assumed were included in the original package. One of the CISOs we partnered with put it perfectly: “We were constantly being nickel-and-dimed for basic features, like the reports we needed for oversight. Managing our vendors should not feel like jumping through hoops.”
This approach leaves businesses stuck in a cycle of inefficiency. They are paying more and more for an outdated system that still does not get the job done. The financial burden keeps growing, but the actual risk management does not improve. That is a tough spot to be in when budgets are tight and there are other important priorities competing for attention.
What Inefficient Vendor Risk Management Is Really Costing You
Time Costs
Traditional VRM systems often require managers and cybersecurity experts to spend hours manually conducting vendor risk assessments, gathering compliance documents, and following up with vendors for incomplete or outdated information. Tasks that could be automated—such as data collection or risk scoring—are often done manually, subjectively leading to wasted time. These inefficiencies slow down decision-making. For example, when teams spend days chasing down vendors for compliance checks, the business is left exposed to potential risks while waiting for a complete picture. Delayed decisions mean delayed risk mitigation, which can end up costing both time and money in the long run.
Financial Costs
The financial impact of manual processes quickly adds up. Every extra hour spent on risk assessments, vendor onboarding, and compliance tracking drives up labor costs. And with traditional VRM tools, companies often face unexpected costs—like paying extra for basic features such as custom reports or adding users. This is just one of the many frustrations we hear from clients every day. One procurement officer told us: “It feels like every time we need a new feature, I’m pulling out the checkbook again.” And it is not just about the extra costs—slow compliance tracking can lead to regulatory fines, piling even more onto the financial burden.
As if it was not enough, businesses risk regulatory fines when inefficient processes result in compliance lapses. As you see the list keeps growing, good luck.
Operational Risks
Relying on emails and spreadsheets to track vendor risks increases operational risks. Important issues like cybersecurity vulnerabilities or compliance failures can be easily missed, leaving your organization exposed until the damage is already done. In today’s fast-moving world, slow response times can lead to serious problems, like supply chain disruptions, financial loss, or reputational damage.
Opportunity Costs
Perhaps the most significant hidden cost is the lost opportunity. Instead of focusing on high-value work like innovation or improving your company’s risk strategy, your team is tied up with tedious, manual tasks that could be automated. This inefficiency not only impacts daily operations but also limits your business’s ability to grow, innovate, and stay competitive in a rapidly changing market.
The Smarter Way to Manage Vendor Risks: Supplier Shield’s Automated Solution
Managing third-party vendor risks can feel like an uphill battle, can it not? You are stuck chasing down vendors for compliance documents, manually updating endless spreadsheets, and constantly worrying about what risks you might be missing. Every day, you feel the weight of inefficient systems slowing down your team, draining time and energy that should be spent on more strategic work.
You have likely asked yourself, ‘Why are we still doing it this way?’ That is not just frustration talking—it is the voice of progress.
Supplier Shield is here to do all this, help you where you needed it the most. We simplify VRM for you.
Here is how we are turning those frustrating pain points into smooth, automated processes:
1) Automation of Vendor Assessments
Manual tasks like entering vendor data, chasing compliance documents, and managing spreadsheets eat up valuable time. Supplier Shield automates the entire process—from onboarding vendors to continuous risk monitoring. No more back-and-forth emails or fragmented assessments—just efficient, hands-off automation that frees you and your team to focus on higher priorities.
2) Real-Time Monitoring
Traditional, outdated assessments leave you exposed to risks that can change overnight. Supplier Shield’s real-time monitoring keeps you updated instantly. Whether it is a cyber threat or compliance issue, you are immediately notified, allowing you to take quick action and prevent potential issues from escalating. A system that was built for all these tasks.
3) Streamlined Reporting and Compliance
Building compliance reports from different tools and systems is tedious, and hidden fees for basic features only add to the frustration. Supplier Shield eliminates that hassle. You get customizable, easy-to-generate reports with no extra costs. Whether you are tracking risks or meeting regulatory requirements, everything is accessible and ready when you need it.
4) Managed Services: Supplier Shield Does the Heavy Lifting
Vendor assessments, security audits, compliance checks—it all adds up. Supplier Shield’s managed services take the burden off your team. Our expert staff handles the heavy lifting behind the scenes, so you can focus on driving your business forward while we manage vendor risks for you.
5) User-Friendly Interface
Many older systems are difficult to use and require lengthy training. Supplier Shield offers a clean, intuitive interface that makes managing vendors and generating reports easy. There is no need to struggle with complicated software—everything is designed to help you work more efficiently from day one.
6) Case Study: From Frustration with Hidden Costs to Effortless Risk Management
Not long ago, we started working with a mid-sized financial services firm that was initially relying on manual, traditional vendor risk management (VRM) processes. Their team was overwhelmed—spending endless hours on repetitive tasks like gathering compliance documents, manually entering data into spreadsheets, and constantly following up with vendors. They knew they needed to modernize, so they decided to upgrade to a new third-party risk management system with the hopes of streamlining their work.
At first, it seemed like the solution they were looking for. But soon, the excitement faded as the hidden costs started piling up. Every time they needed a feature—like adding more users, generating custom reports, or accessing real-time monitoring—they were hit with extra fees. The more they relied on the system, the more they felt nickel-and-dimed. What should have made their job easier was quickly becoming another burden.
Frustrated and tired of being upsold on features they truly needed, they went searching for a better option—and that is when they found us.
When they transitioned to Supplier Shield, everything changed. Our solution gave them exactly what they were looking for: automated vendor risk assessments, compliance tracking, and real-time monitoring—all without the constant upsells or surprise fees. They no longer had to waste time manually entering data or chasing down vendors. Our platform took care of that with seamless, automated workflows that let them focus on managing risk, not processes.
But what really made a difference for them? The fact that everything they needed was included from the start—no more unexpected costs for reports, extra users, or real-time insights. By switching to Supplier Shield, they not only saved time and frustration but also thousands in hidden fees.
Certainly, from time to time—especially with high-risk vendors—our clients turn to our experts through our managed services for extra support. While this comes at an additional cost, we are always upfront about it. After all, we are still a business, but we pride ourselves on being a transparent one.
Why Choose Supplier Shield? Key Benefits for Your Business
Time-Saving Automation
Supplier Shield automates vendor risk management—from onboarding to real-time monitoring—eliminating manual tasks and saving countless hours. Your team can focus on strategic work while Supplier Shield handles the heavy lifting.
Reduced Costs
Say goodbye to hidden fees. Supplier Shield includes essential features—like reporting and user access—in its core offering, reducing labor costs and avoiding the surprise expenses common with traditional systems.
Enhanced Risk Visibility
With real-time risk monitoring, you can spot vendor risks the moment they emerge. This proactive approach helps businesses react swiftly, avoiding financial and reputational damage.
Improved Compliance
Supplier Shield automates compliance tracking, ensuring vendors meet regulations like GDPR and CCPA without manual effort. Automated reports keep you audit-ready and reduce the risk of penalties.
Scalability
As your vendor network grows, Supplier Shield scales effortlessly with you—no need for additional resources or increased complexity.
Switching to Supplier Shield means saving time, reducing costs, improving risk visibility, ensuring compliance, and growing without extra operational burden.
Ready to Save Time and Cut Costs? Here Is How to Get Started with Supplier Shield
- Simple Onboarding
Visit SupplierShield.com to schedule a quick consultation to assess your needs. We will guide you through onboarding, and your team will be automating risk management in no time. Our support team ensures a smooth transition from start to finish.
- Free Demo
Interested in seeing how it works? Visit SupplierShield.com to schedule your free demo and explore how our automated platform can streamline your vendor risk management, save time, and cut costs.
- Talk to Us
Want to learn more? Reach out for a personalized consultation. Call us at +41021 802 35 54 or email request@suppliershield.ch to see how we can help transform your vendor risk management.
It Is Time to Move Beyond Inefficient Vendor Risk Management
Traditional vendor risk management (VRM) methods are no longer sustainable. They are costly, inefficient, and filled with hidden fees that today’s businesses simply cannot afford to ignore. Manual processes and outdated tools bog down teams, delay decisions, and leave organizations vulnerable to emerging risks.
If I can leave you with one piece of advice from someone with over 30+ years in VRM, it is this: Even if you choose another service, be diligent in assessing your critical suppliers to protect your business. The risk landscape is evolving, and now more than ever, you need a solution that can keep up. If you are already facing the same frustrations as many of our customers, we are here to help you out.
Vendor risk management simplified.
