NS Management streamlines vendor procurement processes to boost operational efficiency with VendorPM

The Company

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Established in 1986, NS Management provides comprehensive services for condos, townhomes, and HOAs. Serving associations in Chicago's north and west suburban markets, they are recognized for their prompt service, dedication to enhancing property values, and customer satisfaction. NS Management has cemented its reputation as a leading provider of exceptional condo management services and they continue to showcase their unwavering dedication to client satisfaction and property excellence.

The Challenge

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NS Management was facing challenges in vendor procurement, including difficulties in identifying trustworthy service providers, tracking vendor performance, and handling labor-intensive vendor sourcing processes. This resulted in a considerable burden on their workflow, creating inefficiencies.

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Traditionally, NS Management depended heavily on internal vendor lists for their procurement needs. They had a pool of preferred vendors that they worked with regularly, but as the demand for their services grew, these vendors were becoming overwhelmed. This necessitated the search for new service providers to meet their increasing requirements. However, with existing tools ensuring the quality and reliability of these new vendors was a significant challenge. Moreover, tracking individual vendors for updates and securing quotes was a time-consuming task that added to their already intensive workload.

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In light of these challenges, NS Management started looking for a comprehensive platform that could help them streamline vendor procurement and sourcing. The aim was to find a solution that would not only bring about significant time and cost savings, but also improve their workflow efficiency and overall vendor procurement processes.

The Consequences

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Risk Exposure

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Relying solely on internal list of vendors led to an overextension of their existing service providers, necessitating the procurement of new vendors. However, without a comprehensive vetting process, there was a potential risk of using vendors that failed to meet their quality and compliance standards. This led to the recognition that without process adjustments this could result in project delays, or even potential legal implications if their vendors were non-compliant with regulations.

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Decreased Efficiency

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In the absence of an effective e-tendering and integrated procurement/management tool, Property Managers at NS Management found themselves relying on internal vendor lists; they were spending, on average, a significant one to two hours just to finalize a single quote request. This labor-intensive process not only affected their workflow, but it also took valuable time that could have been better spent on other key tasks essential to their operations. With a lack of streamlined vendor procurement processes, it was clear that their operational efficiency was being significantly affected.

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Lack of Operations Visibility

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Without having an integrated solution to track vendor performance and work order status, NS Management was left desiring increased visibility into their operations. This made it harder to make informed decisions, identify bottlenecks, or spot potential issues before they escalated. It also made it more difficult to accurately measure and improve their vendor procurement processes, as they didn't have a clear overview of vendor performance or the effectiveness of their current solutions.

The Solution & Results

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After implementing VendorPM, NS Management experienced significant improvements in their operations, some of which are shown below

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Centralizing Data and Operations:

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Through implementing VendorPM, NS Management was able to upgrade their management/procurement tools and have a centralized platform for all their property, vendor, compliance, and service data. Through this they were able to have a single source of truth for all data on their 15 property managers, 115 properties, 571 preferred vendors, and hundreds of RFQ’s, all under one unified platform. This centralization enabled a streamlined communication and easier access to all crucial information. 

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Enhancing Vendor Procurement: 

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Since implementing VendorPM, NS Management was able to expand their vendor pool beyond their internal vendor list. NS Management saw substantial improvements in vendor selection, which was  a crucial part of their business. The ability to process 140 RFQs, receiving an average of 3+ bids from a wide-ranging vendor base composed of 571 preferred vendors, represented a substantial improvement in vendor selection. Furthermore, with access to VendorPM's extensive network of dependable and well-screened service providers, NS Management could identify the best vendors for their property-specific requirements. This led to an elevated standard in their service delivery, resolving their previous operational inefficiency issues.

Increased Efficiency: 

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With the integration of VendorPM, NS Management was able to enable proactive service planning that enables for further increases in efficiency. They've unified procurement, management, and compliance all under a single access point, handling a commendable 278 service plans with an eagle-eye overview of all their operations. This significant increase in proactive service planning is a direct reflection of the enhanced operational efficiency that VendorPM offers, effectively addressing their previously labor-intensive processes and driving their overall productivity.

Time Savings: 

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Before integrating VendorPM into their day to day workflows, property managers at NS Management were dedicating between 1 to 2 hours for each quote request, equating to a staggering ≈135-270 hours annually, committed to this task alone. However, with the integration of VendorPM's optimized vendor procurement process, the time to process each quote request drastically decreased to 10 minutes or even less. As a result, this significant time reduction saved them an estimated 112-225 hours annually, enabling them to allocate this saved time to other crucial tasks.

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Summary

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NS Management, faced with operational inefficiencies, risk exposure, and lack of visibility in their vendor procurement process, found an effective solution in VendorPM. This new platform allowed them to streamline procurement operations, mitigate risks, and notably reduce costs. VendorPM's centralized platform improved communication and accessibility of crucial information. Additionally, VendorPM expanded NS Management's vendor pool, elevated their service delivery standards, and increased operational efficiency. A substantial time savings of an estimated 112-225 hours annually was realized, as the time to process each quote request decreased from 1-2 hours to 10 minutes or less. The transformation brought about by VendorPM's integration made it a crucial part of NS Management's property management workflow, acting as an direct extension of their team.