The Top 4 Vendor Management Tools Every Organization Needs to Consider
Vendor management tools are the technological solutions that allow organizations to manage their vendors consistently, through frequent collaboration and regular monitoring.
Managing vendors manually is a cumbersome and time-consuming process. Vendors management tools help businesses manage costs, track quality, and measure the performance of third-party vendors.
There is an array of vendor management tools available in the market today. Picking the right solution for vendor management is challenging, and demands a lot of planning and assessment.
We have compiled a list of the best supplier management solutions that help organizations in their search for the right VMS. Here are four vendor management tools that stand out from the crowd:
Procurify is an all-in-one procurement management software. Its vendor management module stores essential vendor information like contact information, address, payment terms, and contracts all in one place.
For organizations that purchase multiple goods from the same vendor, Procurify allows them to store all purchase orders in a centralized location to cut down shipping costs and minimize paperwork for both parties involved. Their vendor performance rating helps buyers determine how well a vendor is performing through scorecards and team reviews.
While Procurify is easy to use and implement, it lacks flexibility. Businesses have trouble tailoring workflows to fit around their operations. Also, Procurify can be a bit too expensive for small and medium businesses.
Kissflow Procurement Cloud
Kissflow is a cloud-based digital procurement tool that helps businesses run procurement processes throughout the entire procure-to-pay cycle. It comes with dedicated functions including vendor management, but can also cover purchase order and purchase requisition management, invoice management, and more.
You can use fluid forms to collect data, and Kissflow uses its built-in capabilities like rule-based workflow routing to make sure that requests get to the right place. It integrates seamlessly with other third-party tools through Zapier, so there is no need for manual workarounds.
Here’s what it can do for vendor management:
- Register vendors quickly and easily, use multilingual catalogs, and access vendor information instantly
- Rate vendors using key performance metrics like policy compliance, delivery quality, timeliness, and more
- Give vendors the ability to easily update their information, and get alerts on order and payment details
- Retrieve and verify supplier data like business reports, financial and credit risk data
- Instantly confirm goods receipt notices (GRNs), goods return ship notices, and more
- Access all POs, PRs, contracts, and confidential vendor payment information, all in one place
- With sub-par supplier performance, initiate corrective action plans (SCAR) or offboard them
- Incorporate rate contracts; enforce contract pricing when catalog prices are raised
Zycus is a workflow-based procure-to-pay management solution that optimizes every step of the vendor management process from vendor qualification to selection and vendor rating.
It offers an online self-service portal for suppliers which can be used for pre-qualification, catalog and bid management.
Its transparent rating system evaluates suppliers based on a number of pre-defined factors and picks an accurate bid winner every time. The AI-based auto-classification capability of Zycus made it a leader in the spend analysis space.
While Zycus offers a deep value for small to medium businesses, it may not fulfill the needs of large enterprises that are looking for a product with a global footprint.
Precoro is a user-friendly spend management solution that is designed to help businesses optimize their spendings and generate savings.
Its supplier management module stores all vendor information, purchase orders, invoices, and contracts in one place. The smart notification feature tracks agreements and makes sure nothing falls through the cracks.
Precoro’s self-service supplier portal allows vendors to manage catalog, update prices, control delivery dates, and respond to RFPs (request for proposals) in a click. It simplifies vendor communication and enhances collaboration.
Although it is quite extensive when it comes to functionalities, Precoro’s rigid approval workflows make users wish for more flexibility when trying to tailor a vendor management process attuned to their business needs.
Procurement teams can use procurement tools like Kissflow Procurement Cloud to collaborate efficiently with their vendors and track their performance better. With the evolution of cloud technology, digital procurement has come a long way.
Although some of these vendor management-only tools listed seem like a good prospect, the truth is that a comprehensive procurement solution is usually either easy-to-use, but lacking features, or packed with features, but requires months of training.
Before you leap onto a specific product, take a look at each tool and verify whether it suits your unique vendor management process. Looking for a vendor management tool that streamlines your supplier relationship management process with absolute ease? Try the Kissflow demo for free today, and see if it is the right fit for your organization.