We first determine the criticality of the vendor. Those vendors not identified as being 'Critical' are classified into tiers based on the following factors:
Tier 1
All vendors who:
i. Provide products or services considered essential but not critical to the business and where a disruption of service would cause limited immediate impact on our field representatives, fraternal leaders or members;
ii. Require additional oversight due to a vendor related Suspicious Activity Report (SAR);
iii. Are located in a foreign country;
iv. Have a projected or actual yearly spend that equals or exceeds $1M; OR
v. Otherwise designated as Tier 1 by senior management.
Tier 2
All vendors who:
i. Provide products or services not considered essential to the business and where a disruption of service would cause minimal impact on our field representatives, fraternal leaders or members; OR
ii. Have a projected or actual yearly spend greater than $500k but less than $999,999.
Tier 3
All vendors who:
i. Provide products or services where a disruption of service would cause no impact on our field representatives, fraternal leaders or members; OR
ii. Have a projected or actual yearly spend less than $499,999.
We also use Exempt, for those vendors not subject to our vendor policy, and Reseller. We track Risk separately.
Tracy
Tracy J. Wilson, PMP, FLMI, PCS
Enterprise Services Manager
Enterprise Services
Modern Woodmen of America