February 13th, 2019 • Procurement Process • Vendor Management
As most procurement teams know, businesses have evolved from focusing on purchasing alone, to a more vendor-relationship focused approach. It’s been over 25 years since organizations first shifted focus onto business relationships with vendors.
The challenge in today’s option-heavy and marketing-saturated business world is picking the right approach to vendor management. There is no dearth of vendor management solutions out there today.
Before we get into the promised one-hour VMS system, let’s take a quick recap at the basics of Vendor Management Systems and see why every business needs them.
VMS systems are software suites that help businesses take care of processes involved in the end-to-end vendor management process, from the initial contact to final closure of a deal or establishing a business relationship. Taking a modular approach, they usually have specific modules or apps that take care of processes like vendor onboarding or vendor payments.
Vendor management is key to the success of any procurement team, and using VMS systems offers undeniable benefits in this context. Let’s take a look at a few of these.
Before picking a vendor management system, make sure the answer to each question given below, is a ‘yes’.
Using KiSSFLOW, an easy-to-use procurement software solution, you can create your own dynamic vendor management system in no time. KiSSFLOW isn’t a dedicated VMS system, but a simple no-code automation platform that you can use to build the VMS system you need.
Pick the vendor management processes that you want to automate/optimize, and create an app using KiSSFLOW’s drag-and-drop tools to design forms and workflows. Alternatively, you can start using one of KiSSFLOW’s 50+ built-in templates, and customize that.
Assign task-wise responsibilities, and design workflows for every process you want to automate. You can only achieve improved efficiency, consistent results, and automation through properly designed workflows.
Use KiSSFLOW’s visual, simple tools to add the data fields, policies, and approval points that your business’ specific needs dictate.
Once you’ve created the vendor management apps you need using KiSSFLOW, that’s it–you can get users working through them instantly. There’s no waiting period for software launch; you can use every app you create the moment you’re done creating and customizing it!
Suppliers are analyzed with respect to profitability from your organization’s perspective. For smaller businesses, this is based on business criticality. In the case of large enterprises, the deciding factors are risk and profitability.
Keep a close eye on the performance of every vendor you are in a business relationship vendor. This will help you make choices that make for effective expenditure by cutting out costly procurement efforts.
Automated vendor management tools make communication and collaboration easy and simple, helping you get the best out of fruitful vendor relationships.
You should be able to have a clear idea of how strong each of your various vendor relationships is, at any given moment. Spend visibility eliminates overspending and brings much-needed transparency into the procure-to-pay cycle.
Managing vendors and their information in email or sheets makes the vendor management process messy and inefficient. Some benefits of using a vendor management system as opposed to using emails or sheets, include:
An automated vendor management solution brings the best of cutting-edge procurement technology into the process. With KiSSFLOW’s simple, easy layout and convenient drag-and-drop tools, procurement becomes a breeze.
What’s more, KISSFLOW is designed for business users to create vendor management tools with no coding knowledge required.
If you’re in the market for a great procurement tool, take a look at KiSSFLOW.
* - Based on usage requirements