Vendor Compliance

I’m going to digress a bit this week to highlight the expansion of vendor verification and credentialing into other verticals beyond healthcare.  

Buyers have always turned to references for reassurance when they lacked personal experience in selecting a supplier.   And as the internet expands a buyer’s access to potential suppliers to infinite levels, references and credentials become even more meaningful.   At first, comments from strangers about hotels, software, etc. suffice, but reading through those comments quickly becomes numbing.   Comments run the gamut from excellent to miserable. 

Who can you trust?   Turn to the experts to help you decide and vendor credentialing is born.

Now vendor credentialing is moving into a variety of industries, but I think the most intriguing application is the wedding industry.   The average US wedding in 2008 cost $21,800 (down, by the way, from $28,700 in 2007) according to The Wedding Report. 

So, when you’re spending that amount of your own money, you certainly want to be sure you’re getting what you want.   No longer restricted to referrals of friends and families, the happy couple can now turn to Verified Valid to credential the potential wedding service provider.  

Vendors pay from $50 to $300 for credentialing and verification based on the level required.   Then brides pay an additional fee for access to the information.  (Hmmm.   That’s more expensive than in healthcare.)

This all makes more sense than most “Buyer’s Guides” I’ve seen which are little more than paid listings without any vendor qualfication other than the check cleared.   At least here, brides save time and get trusted independent counsel.   Vendors get a stamp of credibility and access to qualified buyers without having to prove themselves over and over.

As healthcare compliance becomes increasingly integrated with risk and supply chain management, it won’t be surprising to see a shift in the vendor’s view that the value of vendor credentialing is in credibility and access to buyers rather than just a hurdle to be jumped.