How to Create Your Own Vendor Management System in 30 Minutes?

You Can Create Your Own Vendor Management System in 30 Minutes. See how!

Shivasankari Bhuvaneswaran

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.

vendor management system

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.

What Is a Vendor Management System?

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.

Why You Should be Using a Vendor Management System (VMS)?

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.

  • Your procurement team established a successful vendor relationship management initiative with minimal expenditure of resources, both personal and financial
  • Goods are delivered, and services rendered, in time
  • Customer relationships improve too, as you deliver consistent results
  • Vendor management systems bring consistency and efficiency into the end-to-end processes involved
  • You can introduce automation to tasks like vendor management, and then analyze vendor performance with zero manual effort
  • Compartmentalize vendors according to factors you choose, using custom reports
  • Optimize productivity in procurement management

Questions to Ask Before Choosing a Vendor Management System

Before picking a vendor management system, make sure the answer to each question given below, is a ‘yes’.

  • Can the system process purchase requisitions and purchase orders?
  • Does it support an approval process?
  • Can it handle invoicing tasks?
  • Does it allow easy integration with the other accounting systems or ERP?
  • Does it provide reporting and metrics, specific to the vendor management process?
  • Is it responsive or mobile-friendly, for on-the-go approvals?
  • Can it handle all the information about the vendors and the company they are associated with?
  • Can it scale well?
  • Is the system user-friendly and will it garner employee buy-in?

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Creating Your Own Automated Vendor Management System in 4 Easy Steps with KiSSFLOW

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.

Step 1: Create apps

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.

Vendor Management App

Step 2: Automate workflows

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.

Step 3: Customize apps

Use KiSSFLOW’s visual, simple tools to add the data fields, policies, and approval points that your business’ specific needs dictate.

Customize Vendor Management App

Step 4: Launch apps

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!

publish vendor management app

4 Features Every Competent VMS System Needs

Vendor segmentation

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.

Performance analysis

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.

Collaboration

Automated vendor management tools make communication and collaboration easy and simple, helping you get the best out of fruitful vendor relationships.

Transparency

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.


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Benefits of Using a Vendor Management System

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:

  • Transparent purchase requisition approval process
  • Better vendor relationship management
  • Centralized management of purchase requisitions, invoice payments, billing information and contracts
  • Unified interface to manage vendors and their work
  • Better security and compliance management
  • Visibility into the spend
  • Integration with the other tools in the company
  • More detailed information about the performance of the suppliers and the vendors
  • Availability of past records for audit trails
  • Ability to make informed decisions about the choice of vendors

Why a Simple Tool Like KiSSFLOW Makes the Most Sense

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.


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