Vendor Management and Quality Assurance Flashcards

What is a 'net-cost pricing' model in relocation vendor contracts?

Answer: The vendor charges only for services actually used, with no markup or management fee

Net-cost pricing means the employer pays actual supplier costs without markup; the RMC earns revenue through management fees or referral fees rather than service markups.

What does 'quality assurance auditing' in a relocation program typically involve?

Answer: Systematic review of vendor performance data, transferee surveys, and process adherence

QA auditing encompasses data analysis, file reviews, surveying transferees, and process checks to ensure services meet policy and quality expectations.

Which transferee survey metric is most commonly used as a top-level indicator of relocation service quality?

Answer: Net Promoter Score (NPS)

NPS asks transferees how likely they are to recommend the relocation program, providing a single, comparable measure of overall satisfaction.

What is the purpose of a 'vendor certification' requirement in corporate relocation programs?

Answer: To verify that vendors meet minimum standards for licensing, insurance, and professional competence

Vendor certification requirements protect transferees and employers by ensuring service providers carry proper credentials, insurance, and comply with regulatory requirements.

Which relocation industry organization provides quality-certification programs for RMCs and their service networks?

Answer: Worldwide ERC

Worldwide ERC (Employee Relocation Council) is the primary professional association for the relocation industry, offering certifications, training, and research including the CRP designation itself.

What does 'invoice auditing' protect against in a corporate relocation program?

Answer: Billing errors, duplicate charges, and services invoiced but not rendered by vendors

Invoice auditing catches overcharges, duplicate billing, and incorrect service codes before payment, directly reducing program costs.