Vendor management solutions are a type of software as a service (SaaS) that allows businesses to communicate, assign tasks, and pay independent contractors/freelancers. Vendor management tools serve four main functions:
- Vendor Engagement – Accessible communication channels that facilitate vendor communication in real-time and strengthen vendor relationships.
- Project Management – Assign tasks, coordinate work, track performance management, and other agile supplier management functionalities.
- Payroll Management – Efficient business processes to organize payments, contracts, and expenses of a contingent workforce.
- Compliance Management – Ensure all vendors and operations meet regulations and industry standards.
What are the Best Vendor Management Solutions for Your Business?
Comparing the 10 Best Vendor Management Solutions
| Cost | Pro | Con | Key Feature | |
| Airbase | The Base plan is free and the Growth and Enterprise plans are based on activity. | Precoding features for virtual cards and subscriptions. | There isn’t a fully built out expense reimbursement module yet. | Project spend based on contracts signed and recommendations to improve existing tools. |
| Onspring | The team plan is $175/month per user. Enterprise plan is quote-based. | No-code configuration that is simple to learn, even for non-IT professionals. | The dynamic document functionality could use some improvement; specifically the final document. | Customized vendor risk assessments to manage regulations and stay in compliance. |
| SAP Ariba | The Standard plan is free, Advantage is $599/year, and Advantage Plus is $1,999/year. | Simple purchase orders allow for approvals before making orders. | There are many screens in Ariba and it can be difficult to find the information you want. | Supplier lifecycle management from onboarding to phase-out, all in a central spot. |
| Tradeshift | Quote-based. | The interface is intuitive and enables you to easily send customer invoices. | The document page organization process can be difficult at times. | Tradeshift Engage feature for powerful vendor collaboration (no portals). |
| Genuity | $29.99/month. | White glove customer support via chat, phone, and email. | There is a lack of internationalization to support different global locations. | Optimize vendor spend by drilling into cloud usage and license details. |
| Gatekeeper | The Essentials is $775/month, Pro is $1,855/month, and Enterprise is $3,325/month. | Intuitive, extremely easy to use, and customizable. | Workflows are difficult to set up if your objectives are not clearly defined. | Total control over exchange rates with multi-currency capabilities. |
| Taulia | Quote-based. | You can administer a large amount of funds across many vendors. | It takes a few minutes to display a payment as an invoice, causing redundancy. | Comprehensive automated invoice processing using machine learning and AI. |
| Productiv | The Essentials plan is free and the Enterprise plan is quote-based. | You can cross data with a team or function, so you know the level of engagement per department. | Limitations for certain applications, due to the API, which makes some tools harder to track via Productiv. | Manage SaaS sprawl. Visibility into all of your tools to track renewal, adoption milestones, and spend. |
| Vanta | Quote-based. | A comprehensive set of controls for SOC2 with almost all of the integrations needed for automated compliance checking. | Needs a more centralized task management flow to help clear red flags. | Actionable security guidance with employee onboarding and role-based permissions. |
| Blissfully | Quote-based. | The powerful usage discovery tools make finding spend for deprecated apps simple. | When it comes to creating users there is a sync delay between G Suite and Blissfully. | A built-in renewal calendar to track all your opt-out and renewal dates in one place. |
#1) Airbase
Overview
Airbase is an expense management, corporate card, and bill payments solution that’s the first all-in-one spend management platform. It provides companies visibility and control into every dollar spent.
The Airbase platform handles a variety of tasks like:
- Expense requests
- Approvals
- Bill payments
It also automates coding and posting to the general ledger.
Top Features
Expense Reports
Creating expense reports is intuitive and takes little time. It includes digital receipt management, bank/credit card integration, and employee reimbursement. Give every expense an owner with a custom spend request and approval process.
Mobility
Capture receipts on-the-go and assign them to a report from any mobile device. Track mileage, travel itinerary, and flight status updates.
Payment Processing
Payments can be processed by batch without manual intervention. Automate workflows and create self-service portals to easily submit invoices for processing. Reconcile and match up invoices, payments, and bank statements.
Insights and Recommendations
Airbase provides recommendations on how to improve your use of existing tools. Project spend based on contracts signed and identify redundant transactions. Create reports outlining application utilization, user sentiment, and cost.
Additional Features
- Contract management with price tracking and app catalog
- Agnostic integration with any other products
- Fraud management with SSL encryption and PCI compliance
- Payment methods include ACH, credit/debit, and wire transfer
- Revenue recognition with usage tracking and deferred revenue
Price
The pricing is three-tiered.
The Base plan is free. It’s perfect for companies with less than $25,000 of corporate card spend and up to 15 bill payments every month. There is generous cashback on all card purchases with certified integration for Xero and QuickBooks Online.
The Growth plan is priced based on activity. This is for companies who spend up to $500,000 each month on corporate cards and are looking to manage bill payment transactions. There is very generous cashback on all card purchases with certified integration for Xero, QuickBooks Online, NetSuite, and Intacct.
Enterprise pricing will reflect the level of support and activity your brand needs. This is for companies with more than $500,000 monthly corporate card spend and seek additional hands-on support.
#2) Onspring
Overview
Onspring is an award-winning process automation solution with intuitive automation and real-time reporting. The cloud-based system is flexible, scalable, and equipped for roles like risk, governance, and auditing.
Onspring believes in “people-powered automation” and helps a business harness technology that improves their management systems and simplifies workflows. The platform can be customized for every team’s needs to help you work smarter, not harder.
Top Features
Process Automation
Manage a full vendor lifecycle with procurement and conduct a standardized onboarding process. Issue customized vendor risk assessments and monitor mitigation plans. Identify duplicate vendors or repeat vendors across the entire enterprise and control access by group, user, or role.
Governance, Risk, and Compliance
The award-winning GRC solution fully integrates your risk management strategy by connecting policies, risks, and compliance into one simple tool. This covers tasks like:
- Internal audit and assurance
- Business continuity and recovery
- Incident and policy management
IT Service Management
Understand the value of your IT team with more efficient incident tracking, faster ticketing, and easier performance management. Expect management tools for:
- Assets
- IT incidents
- Software development lifecycle
Business Operations
Automate business processes and watch productivity skyrocket. Efficiently manage incidents, contracts, and continuity with reliable workflows, real-time reporting, and role-based controls.
Regulations
Onspring is the fastest way to manage regulations and stay in compliance with ever-changing regulatory standards. Explore by regulations which include:
- CMMC
- GDPR
- HIPAA
- HITRUST
- And more…
Additional Features
- Analytics with real-time reporting
- Automation of dynamic workflows, messages, and integrations
- Custom dashboards
- Complete data consolidation with advanced formulas
- Admin support with training and implementation assistance
Price
Although the cost of the platform is not listed on their site, a quick search reveals that the pricing model is subscription-based with two tiers:
- Team – Up to 20 users – $175/month per user
- Enterprise – 20+ users – Call for custom quote
#3) SAP Ariba
Overview
One of the top brands on the planet for everything IT, SAP offers a cloud-based solution for collaborative spend, sales, and finance management. Although CRM and ERP systems are great, they don’t do much to improve interactions between you and your vendors.
This is typically still managed with a fragmented array of applications and manual processes. Not only does this elevate costs, it blocks your views, and presents a higher risk. SAP Ariba makes vendor collaboration easier and more efficient by addressing all of these issues.
Top Features
Supplier Risk Management
Make smarter decisions prior to purchase with risk due diligence as part of the procurement process. When a buyer is well-informed, they can avoid making decisions that create greater risk for the business.
Supplier Lifecycle Management
SAP Ariba Supplier Lifecycle and Performance helps manage the entire lifecycle of your vendors, from onboarding to phase-out, all in a central spot. Drive spend to preferred vendors and scale compliance for your entire supply base.
AI-driven Supplier Insights
Employ AI-driven supplier insights to continuously improve the spend experience. Increase RFI participation, speed up negotiation, and reduce delayed deliveries.
Strengthen Supplier Collaboration
Strengthen vendor collaboration and health to ensure critical supply. Accelerate time-to-savings with supplier feedback in real-time. Insights are delivered by the Qualtrics Experience Management Platform.
Additional Features
- Vendor selections using an up-to-date risk profile with category, location, business unit
- Contract negotiation establishing terms and risk KPIs
- Matrix-based, single view of vendor to manage performance and mitigate risk
- Onboarding with understanding of risk assessment and audit status
- Source and manage direct and indirect materials on a single platform
Price
SAP Ariba has three tiers of pricing. All of them come with the following features:
- Email notifications when new RFI/RFQ postings match your business
- Respond to buyer messages directly
- Respond to RFI/RFQ postings
- Company profile
- Dun and Bradstreet number
Standard – No annual fee
The Standard plan is free to join and comes with all the basics. You are limited to 20 messages per year for buyers and responding to RFI/RFQ postings ranges from free to $149.
Advantage – $599/year or less than $50/month
This package includes everything in the Standard plan, plus the following features:
- Prioritized listing in buyer search results
- Include attachments and external links in your profile
- Brand with a company logo
- 50 messages a year (instead of 20)
Advantage Plus – $1999/year or less than $167/month
This package includes everything in the Advantage plan, plus the following features:
- Dedicated customer service and expert advice to boost results
- Register free for SAP Ariba Live (annual networking and commerce conference)
#4) Tradeshift
Overview
Tradeshift is an end-to-end business commerce platform. It’s the #1 network solution for automating vendor processes. The system enables a company to go paperless and touchless throughout the entire order-to-pay cycle. Capture invoices digitally and let Tradeshift do the rest.
The program was designed to help your business grow by building a modern B2B supply chain network and digitizing trade. Tradeshift helps a brand become continuously adaptable, no matter the pace of change.
Top Features
Tradeshift Engage
Give suppliers a reason to do business with you. Rather than pushing vendors through another portal, Tradeshift gives a company free access to supplier collaboration and analytics. From day one, you can lead sellers into a more productive partnership.
Insights and Analytics
Drive deeper value with actionable insights that enable better decision making. This includes tools for better transaction visibility, advanced analytics, and data capture from your ERP solution.
Central Communication Hub
Communication between buyers and vendors has never been easier. All interactions in the Tradeshift platform are tracked and documented. You won’t have to rifle through your inbox ever again.
Easily attach credit notes, invoices, remittance advice, and support documentation. The hub boasts a fast and intuitive interface that consolidates all the data you need to streamline vendor communication.
Spend Management
Eliminate paper receipts and overblown staff spend. Tradeshift Go is a web app that makes corporate cards better. Combine the system with your corporate card program and issue pre-approved, encrypted virtual cards through a single web app. This gives a business the freedom to buy, free of worry.
Additional Features
- Tradeshift Pay elevates AP processes and automates pay cycles
- Guaranteed supplier onboarding rate with real value to draw vendors in
- Capture and validate invoices digitally, regardless of how they are sent
- AI-enhanced dashboard that is dialed up/down depending on desired control
- Tradeshift Buy to fill your supply chain with offers from chosen vendors
Price
Tradeshift does not list transparent pricing on their site. The service is offered for free to vendors so they may invoice your business, but the cost of using the software relies on a variety of factors. For exact pricing, it’s best to contact a Tradeshift representative.
#5) Genuity
Overview
Genuity provides tools that help you navigate the IT market, optimize technology spend, and improve the bottom line. Take advantage of your entire tech stack with a platform developed for IT pros, by IT pros. It’s a members-only network with no gimmicks that is designed to help a business grow.
Top Features
Leverage Your Tech Tools
Gain a bird’s-eye view of your vendor expenses so you can optimize spending. Eliminate unused applications and instances. Track vendor products, spend, cloud, and more.
Easily identify opportunities where you can reduce spend and save. Set alerts to track trends and changes in vendor usage.
Visualize Costs
Find ways you might be overspending and chart your spend over time. This helps to recognize patterns and discover savings opportunities. Know exactly where your money is going so you can optimize financial trends.
Optimize Vendor Spend
Drill into cloud usage and license details. You can also look into billing trends and contract details to streamline workflows and save.
Featured Integrations
Genuity easily integrates with all the top tools you trust. This includes top brands like:
- Salesforce
- Office 365
- GSuite
- Azure
- Xero
- QuickBooks
- And more…
Additional Features
- Contract management to guarantee compliance and increase revenue
- Asset management to onboard all IT tools with ease
- Telecom expense management to illuminate savings opportunities
- Network monitoring to stay ahead of IT infrastructure issues
- Help desk to track your needs and go beyond ticketing
Price
Genuity offers every single feature for a single, flat rate. The first 30 days are free and then the cost is $29.99/month per company, with unlimited users. There is no credit card required to test the software out.
#6) Gatekeeper
Overview
Gatekeeper is a cloud-based vendor management solution that helps a business drive maximum value from its contracts and supplier relationships. Store all vendor data in a central repository to give your business a single source of truth.
Place AI and automation at the heart of your business to save time and money while minimizing risk and creating more resilient processes. The built-in communication platform stores all incoming and outgoing vendor messages in a searchable audit trail that keeps your business in control.
Top Features
Comprehensive Vendor Management
Manage vendor information and relationships in a single spot, across your entire team. Quickly and easily view data like:
- Supplier contact information
- Related documents
- Contracts
- Compliance and regulations
You can also send email requests directly inside the application.
Gatekeeper also has a central repository for all contracts and renewal dates. Clarify ownership and store all communications, contract obligations, and key documents in one spot, up-to-date, and across the entire company.
Seamless Integration
Gatekeeper offers an open API for unlimited integration capabilities. The system also integrates with specific popular brands, like:
- NetSuite
- Microsoft
- Single Sign-on with SAML 2.0
Risk and Action Tracking
Easily manage risks, compliance, and RAG status. Monitor KPIs using simple and powerful action tracking and reporting.
Multi-currency Capabilities
Gatekeeper enables a business to set a reporting currency and enter contracts and spend accordingly. This gives you total control over exchange rates that are in line with corporate standards.
Additional Features
- Unlimited users on a single plan
- MS Word compatible redlining solution to check documents in and out of the system
- Cost reduction tools for workflows, reporting, and consolidation
- Analytics suite for clarity on renewals, spend, risk, compliance, and user activity
- Renewals management tools to receive alerts and reports to manage contracts
Price
Gatekeeper pricing has three tiers. Each comes with shared and separate features and are charged on a monthly subscription basis (which can be paid annually).
Essentials – $775/month
- 150 vendors
- 150 contracts
- Unlimited archives and users
- Assisted data import
- Email support only
Pro – $1,855/month
- 500 vendors
- 500 contracts
- Unlimited archives and users
- 4 hours of onboarding
- Quarterly reviews
Enterprise – $3,325/month
- 1,000 vendors
- 1,000 contracts
- Unlimited archives and users
- Customized onboarding
- Quarterly reviews
- Dedicated account manager
#7) Taulia
Overview
Taulia is a leading provider of working capital technology solutions that help a business access the value tied up in a supply chain. The system helps a company transition from manual vendor management practices into technology-led, working capital optimization strategies.
Taulia’s vision is to create a world where buyers and vendors thrive by enabling parties to choose when to pay and get paid. Whether providing third-party liquidity to suppliers using supply chain finance or generating yield with dynamic discounting, Taulia helps a business gain operational efficiencies and strengthen vendor relationships.
Top Features
Automated Invoice Processing
Taulia delivers invoice automation that enables you to receive electronic vendor invoices quickly and efficiently from vendors of any size. Automate manual processes, eliminate paper, reduce errors, and capture early payment discounts.
The system allows a business to streamline invoice data capture while dramatically reducing processing costs. Invoicing options include:
- Supplier self-service
- Cognitive invoicing
- Integrated invoicing
Dynamic Discounting
Offer vendors early payment discounts and earn a risk-free return for your business. Dynamic discounting is a form of vendor financing that puts surplus cash to better use. Suppliers can take payments early in exchange for a discount.
Vendors choose which invoices to accelerate according to cash flow needs. Take payment at any time between invoice approval and maturity. Strengthen supplier relationships by injecting liquidity into your supply chain.
Supplier Management
Access up-to-date supplier information and reduce incoming queries with a self-service supplier portal that will empower your vendors. The supplier portal provides a timely and transparent flow of data between you and your vendors.
Reduce incoming calls and maintain vendor details without hassle. Stop chasing suppliers for tax forms and bank account details by offering an easy tool they can use to maintain data.
Streamline supplier communications and reduce the backlog of emails in your inbox to ensure nothing gets missed. Keep all communication in one place and associated with the document being discussed.
Additional Features
- Supply chain finance to boost cash flow with third-party funding
- Cash forecasting to accurately predict cash flow and reduce reliance on data
- Invoice automation to process invoices quickly and efficiently from any size vendor
- Seamlessly switch between self-funded dynamic discounting and third-party supply chain finance
- Single, scalable solution where two-thirds of your vendors are already enrolled
Price
Taulia does not list any pricing on their site. The service is free for vendors to use so they can send your business invoices. If you need an exact cost, it’s best to contact a Taulia representative for a custom quote.
#8) Productiv
Overview
Productiv is a leading enterprise SaaS management platform that provides a full picture of every asset in your vendor portfolio. Business, Finance, and IT leaders collaborate in Productive to understand everything from application adoption to company productivity and cost reduction.
The system was created to help improve the employee software experience and maximize application value. It’s designed to create insights that help people work smarter, not harder.
Top Features
Manage SaaS Sprawl
Visualize all applications and intelligently allocate licenses. Productiv makes it easy to gain visibility into all of your tools and track renewal, adoption milestones, and spend. Evaluate redundancy by looking at metrics like engagement instead of log-in data alone.
Reduce Vendor Costs
Continuously evaluate and manage your application spend. The system will ensure a business always has the right mix of applications and that you have optimal control over licenses and spend. Find where app redundancy exists, then slice and pivot on overlap data.
Drive SaaS Value
Gather data and insights to maximize application adoption and drive efficient operations. Once you have a working knowledge of which applications suit your business best, you can begin to analyze how much you need of each platform. This helps to control costs, manage spend, optimize licenses, and capture true value from your tools.
Plan SaaS Renewals
SaaS renewals are much more than costs and licenses. It’s also about how the business is using the app. Productiv provides deep engagement analytics that will help a company determine its most rewarding vendor relationships and assist in the negotiation process.
Additional Features
- Full ROI of application investments to identify gaps in adoption
- Remove data silos and inefficient communications by identifying redundancies
- Forecast and benchmark accurately to anticipate future upgrades
- Rightsize your existing licenses and make data-driven renewal decisions
- Set adoption goals to maximize organizational value of existing tools
Price
The pricing for Productiv comes in two tiers, the Essentials plan, and the Enterprise plan.
The “no-cost” Essentials plan provides comprehensive visibility that helps a business say goodbye to spreadsheets. There is no cost to use the basic platform and the system comes with these features:
- 360-degree visibility in real-time
- Manage spend and renewals
- Discover shadow IT
- Basic application analytics (20,000+ apps)
- Advanced engagement analytics – 1 video conference app of your choice
- Centralized notifications
- License recommendations
The Enterprise plan is designed for a larger business and the pricing is custom. All plans have complete customer service, support ticketing, and a help center. The Enterprise plan also comes with a dedicated account manager.
#9) Vanta
Overview
Vanta helps a business prepare for the time-consuming and tedious process of audits. It simplifies compliance for the SOC2 audit and provides a suite of tools that secures your business. Monitor your entire operations for security vulnerabilities and cut prep time by two to six months.
When your business is ready for the SOC2 audit, you have the benefit of working with a Vanta partner audit firm of your choice. Each audit partner has agreed to a fixed discount for Vanta customers and is trained to gather evidence directly inside of the program.
Top Features
Comprehensive Monitoring and Alerting
Easily connect all your tools to Vanta so you can spend less time bookkeeping and pay more attention to fixing issues. Flexible gap assessments with custom checklists can be tailored to a company’s needs and commitments.
Reliable alerts help a business understand when items are not in compliance and the appropriate remediation steps that must be taken.
Actionable Security Guidance
Respond quickly when issues are detected. The cloud infrastructure configuration ensures everything from IAM permissions to container vulnerabilities is secure. The system facilitates employee onboarding and allows you to grant or revoke permissions as appropriate. Easily manage and monitor all staff devices, including Mac, Windows, and Linux.
Audit Partnerships
Undergo compliance audits with confidence. Vanta partners with AICPA-affiliated auditors so you can receive certifications quickly and efficiently. The system collects all the info auditors need in a single database so you don’t need to maintain separate repositories.
There are also tools to perform policy documentation and risk assessment that easily translates into compliance speak.
Additional Features
- SOC 2 and compliance resource hub with extensive glossary
- Free SOC 2 compliance checklist
- 500+ companies secured by Vanta
- Full guides on everything you need to get audit-ready
- Clear dashboard with consolidated metadata from all channels
Price
Every audit Vanta partner has agreed to a fixed discount with the company so pricing will depend on a variety of factors. A typical SOC 2 audit can cost anywhere from $20,000 to $80,000. Any software that can alleviate that burden of cost should be welcomed.
All Vanta pricing is through custom quotes. Competitors use a subscription-based model, therefore expect something along the lines of monthly payments.
#10) Blissfully
Overview
Blissfully is an IT operating system that gives you complete and automated visibility into the technology used across your organization. It helps a business identify the tools to control and manage changes.
The vendor management platform automatically uncovers your SaaS strategy and keeps it continuously organized. It uses workflows that collaboratively manage, control, and track changes across your entire organization.
Top Features
Automated Invoice Detection and Document Management
Detect invoices sent to employees across the company to identify duplicate spend and shadow IT. Maintain all key vendor contracts and documents in one platform for easier access.
Vendor Enrichment
Use a tool that knows your tools. The system has a proprietary database of apps and vendors that will give you key insight at a glance, including contact info, compliance status, and more.
There are thousands of tools in the Blissfully roster. You can also centralize all vendor and app metadata with unlimited custom properties. All vendors are tracked and managed from a single platform.
Data Tracking
Use the built-in renewal calendar to track all your opt-out and renewal dates in one spot. Blissfully will use data from thousands of companies to benchmark your SaaS spend and app usage depending on your business stage.
Contract Concierge
Extract and manage up-to-date metadata on all vendor agreements and contracts. Automate contract management processes and streamline operations.
Additional Features
- Vendor workflows with approval, renewal, and termination in seconds
- Automatic SaaS discovery using various integrations
- Spend reporting over time to identify useful trends
- Smart checklist for all employee onboarding tasks
- IT automations to take care of repetitive tasks and save time/money
Price
Blissfully pricing is customized to an organization based on the size of the business and the technology it employs. If you need pricing, fill out the form on their site and a Blissfully team member will be in touch.
A Quick Guide to Vendor Management Software
What is a Vendor Management System?
An entire vendor management system (VMS) is an internet-based means to manage and procure staffing services (usually in a temporary fashion). Typical features of a VMS that streamline operations include:
- Order distribution
- Spend management
- Consolidated billing and invoicing
- Contract management
- In-depth reporting
- Compliance management
Due to recent regulations in the finance industry, a vendor management software solution implies consistent due diligence and risk assessment to manage third-parties. Several institutions now call their programs Third-Party Risk Management (TPRM) to align the verbiage with regulatory compliance.
Types of Vendors
A VMS is a form of contingent workforce management. There are several terms associated with the people involved in this process, which include:
Vendor
The generic term for any person or organization that sells or “vends” a product or service. A vendor can be an independent contractor, consulting firm, staffing company, or large enterprise. Vendor performance can be measured through a pre-established set of KPIs (key performance indicators).
Vendor on Premises (VOP)
A vendor on premises sets up shop in your store. They are part of the supply chain that is concerned with filling the labor needs and requirements of a client. The VOP does this by directly sourcing contingent labor or pulling from other competing business units.
A VOP is typically responsible for onboarding, managing, and coordinating the labor for a client.
Managed Service Provider (MSP)
A Managed Service Provider deals with the requisition of vendors and measures their effectiveness in recruiting. MSPs do not directly recruit. Instead, they collect vendor information to match the best suppliers with a client. This makes them more neutral than a VOP since they only examine supplier data and do not hire directly.
Why Does a Business Need a Vendor Management Solution?
There are many reasons why a company needs this type of management platform. Supplier relationship management is at the top of the list. Remote workers can be hard to supervise; overseeing a contingent workforce is challenging.
Cutting costs is another key advantage to this procurement solution. A company avoids paying above-market rates and supplier markups. Reporting can be leveraged to examine current spend and vendor data.
Vendor management solutions also align with the emergence of the gig economy. Although vendor risk is elevated working with a contractor, it is the direction business is moving in. Establishing trust is important to stay ahead of the competition.
Choosing the Right Vendor Management Software
There are hundreds of software vendors online that will offer you the moon and the stars so, some discretion is in order. What might work for a small business could be disastrous for a large enterprise.
First, define the needs of what a vendor relationship management platform will serve. Then consider the procurement processes required to make your business run smoother and save on costs. Intelligent vendor software is a beeline to effectively managing the lifecycle of a vendor.
Here are a few things to consider when choosing the right vendor management solution today:
Ease of Deployment
The speed of deployment is an important variable, especially if your business is growing rapidly. A steep learning curve puts a strain on workflows and costs money.
Compatibility
Simple integration is important and this type of software doesn’t work in a vacuum. It should be able to align with other systems you already have in place.
Compliance
Many industries have specific regulations to comply with local legislation and processes. Some examples are:
- Financial institutions
- Construction
- Education
- Government
- Healthcare
These types of businesses demand a vendor management system that supports specific functions, procedures, regulations, and workflows.
Vendor Behavior
Choose a system that you are comfortable with and is easy to use. It will save time if you consider vendors’ habits, behavior, and characteristics, as both an individual and a group.
Payroll
If you already have an existing payroll system, look for a vendor management platform that already integrates with it. A business should be able to perform tasks like:
- Track billable hours
- Payroll and benefits
- Built-in time clock
- Performance reporting
Project Management
The system should enable a business to assign different tasks according to skills and abilities. Develop workflows with pre-made templates that allow for quick deployment and customization.
Communication and Engagement
Keep vendors working on what you pay them for by streamlining communication and collaboration. A good vendor management system allows for effective interaction between vendors and their team leaders. It’s also a great way to keep suppliers engaged with your company culture and working environment.
Training and Onboarding
Consider how the solution you choose will work with your established hiring and training processes. How can it make vendors more efficient and cost-effective? If you want a system that allows you to recruit, train, and manage suppliers properly, make this a critical requirement.
The Future of Vendor Management
Strategically managing vendors allows a business to quickly identify compliance gaps and areas of consolidation. Entering the gig economy looks good on paper but can be a hard system to initiate. There are a lot of moving parts involved and administrative processes get complicated.
Automating recruitment means a company can get the most out of its vendors. It reduces risks and leads to smarter business decisions. It also strengthens supplier relationships and creates cost savings.
The right vendor management software will align with the legacy systems you already have in place and add value to operations. It will streamline your AP processes, create self-service opportunities for vendors, and facilitate communication.
A business should consider its top needs, vendor behavior, and integration capabilities. That will dictate the start of your buyer’s journey.
