Nowadays, most of the companies have several, or in some cases hundreds of vendors. They provide services and good to the company. Some of them work on temporary contract, others have fixed rates, there are vendors who are paid on hourly basis. And all of them require a proper management. When vendor management was done separately and on paper, it was extremely time-consuming. However, today, you can forget a pen and paper and long hours calculating which vendor should be paid today and which tomorrow. Vendor management system software is a good way to save your time and energy.
What is vendor management system?
Vendor management systems helps you or your company to coordinate and plan the whole relationship between an employer and vendors. Vendor management is broken into several parts. Firstly, the system ensures that all requirements and duties are clear so vendors know what they should do and how. After goals are set, the company should choose the best vendors. After that vendors need to be constantly monitored to make sure they meet specific requirements and goals.
How can vendor management system software help companies?
Managing all the vendors is very time consuming process. Vendor management software can help your company in several aspects, such as:
- Vendor management systems make it easy to make payment operations. Using the software, your centralize billing and invoicing process;
- Vendor management systems reduce time needed to hire vendors;
- Vendor management system helps company to monitor and manage work done by vendors.
With a wide range of options choosing an ideal vendor management software can be very overwhelming. Here are several key features that vendor software should have.
System Should Be Easy To Use
The main advantage of vendor management software is that the system makes it easy to monitor and coordinate your relationship with vendors. And if the software you have chosen is difficult to use, what is the point of investing money in it? Your managers should find it very easy to work with the system and the software itself should be adjustable and flexible.
System should be easy to integrate
For working properly, every vendor software needs to be connected to other programs you use to run the company. It can not work in vacuum. The vendor management software should be able to adapt to the programs and systems already used in the company. It is important to integrate your vendor software in already existing payroll system, to make sure that billing and invoicing procedures are transparent and done on time.
System should be able to fill specific requirements
Some industries require specific functions to match with regulations and requirements. Before choosing vendor software system, make sure that it can match with your company’s special needs.
Vendor management software
Every vendor is unique. It might sound funny, but that the truth. This is the reason why there is no one answer to the question – what is the best way to manage vendors? Usually vendors need to turn in timesheets and track time to get paid for their work, but with the right management, they will be happy to work with your company. with it you can economy time and money and let vendors focus more on their job, than on the paperwork. In this article, we will try to answer the question: how to I choose a vendor management software that will work the best for me?
First of all, what is vendor management at all? Vendors can provide pretty much any kind of service to your company, the only thing that all of them have in common that they need to do a lot of scheduling and paperwork. Vendor management helps them with this tasks, from timecard to paychecks. Traditionally, all of this was tracked on the papers, but fortunately technologies made this relationship between a company and the vendor easier. Now, you can use specially developed software for vendor management.
Now, let’s head straight to out topic and see how to choose vendor management software.
- Collaboration: when you are looking for a vendor management, do not do it on your own. It is a good idea to let your vendors know about it and listen to their opinion. It will be perfect if you choose it together, because both sides will need to work with it. Collaboration is the main thing here. Some systems are easier to use, some of them have more features and functions, so they are harder to understand and get used to. Some of them are designed for specific types of vendors and companies. You want to choose what will work the best for both, vendors and companies.
- Measure: ask yourself, what should the vendor management software measure? Time and expenses, for sure. That is why you need the software to start with, to make these thing easier to keep track of. But is that the only thing? VMS should not just measure time and expenses, but should also support service level. It should be designed so that it is easy to use it in the new areas.
- Result: finally, you should answer the questions: do I really need it? What will it improve? Is it worth the money? Answers to these questions will be different for different companies, but we will tell you what it will improve for sure. First of all, it will save up labor and costs, help you work more efficiently and handle the details easier. Other than this, it will also prevent you from human errors and result in better relationship and better business. With the software you can create centralized system for bills, payments, invoices and contracts. This is especially important if you are working for a big company, with several offices.