February 5th, 2019 • Procurement Process • Vendor Management
Businesses that manage their vendors effectively grow 2x times faster than their peers who ignore vendor management and collaboration. However, the vendor management process is fraught with complexity: multiple steps, diverse supplier bases, too many stakeholders, ever-changing regulations, and more.
In order to achieve efficiency, organizations need to implement a sophisticated vendor management application that will not only optimize the entire process but also build a better relationship with suppliers. There are an array of standalone vendor management apps available in the market, and organizations don’t have the time to analyze each one.
What if there was a way to tailor your own vendor management application from the ground up without dishing out too much money or demanding coding expertise? No-code process automation tools offer organizations the power to create a robust vendor management application within minutes. Before we dig deeper into them, here’s all you need to know about a vendor management application in general.
A vendor management application is a software solution that automates every step of the vendor lifecycle from vendor identification and onboarding to vendor performance rating and offboarding. These vendor management apps help businesses collaborate effectively with their vendors, make insightful decisions, and track supplier performance easily.
If you’re new to the concept of vendor management automation, it might look daunting. However, in reality, vendor management applications allow organizations to automate a business process in the blink of an eye.
Before entering the realm of vendor management application to find the right solution, businesses need to sketch out their existing process, define tasks, draw workflows, spot stakeholders, and know about the required documentation.
Once the process is mapped out properly using procurement management tools like KiSSFLOW, businesses of any size can create an automated vendor management process in four simple steps.
Businesses can design an automated vendor management process from the ground up or take inspiration from the existing vendor management process templates.
Since the vendor management process is filled with a number of stakeholders, organizations need to map out digital workflows and establish accountability in every step of the process.
Once the basic process outline is ready, organizations can fit it to their requirements. Businesses can customize data fields, define rules, set checkpoints, and create dependencies in this step.
Now that the process outline is perfected, it can be shared with all stakeholders. Once the app goes live, organizations can retrieve real-time information on any approved vendor, spot process bottlenecks, and make instant changes.
In any vendor management process, the primary goal is not to make suppliers submit but to collaborate successfully with them. A vendor management application offers organizations the framework they need to enforce compliance and manage their suppliers as well as provide the tools they need to make it easier for them to collaborate with vendors.
Here are the five features every vendor management app must have:
A centralized platform that stores, routes, approves, and manages all supplier related documents can be accessed by all internal and external users irrespective of their location or time-zone.
Procurement automation tools like KiSSFLOW allow organizations to store these documents securely in cloud-hosting service of their choice like Dropbox, Google Cloud, etc.
Keeping track of vendor performance is an ongoing process. Manual tools like paper forms and disparate online files make supplier audits inherently difficult.
As all critical vendor performance data is stored in a centralized location, it is easy to analyze and rate suppliers. 360-degree visibility keeps the vendor management process transparent and provides real-time information.
Vendor management apps which come with an inbuilt reporting tool allow organizations to identify potential vendor risks.
Powerful reporting capabilities help buyers keep track of vendor quality events like deviations, corrective and preventive action (CAPA), supplier corrective action request (SCAR), and more.
Workflow automation improves the overall efficiency and cycle time by routing, coordinating, executing, and monitoring every step of the vendor management process without any human effort.
Automation helps buyers and vendors alike to stay track on contract terms and policies keeping the vendor management process in line with evolving best practices and regulations.
In a compliance-driven environment, ‘effective communication’ refers to much more than an exchange of information with vendors. To ensure compliance, all forms of communication must be tracked and well-documented.
An ideal vendor management app must offer a robust system to communicate and receive critical information from all third-party vendors.
Vendor management applications incorporate supplier management best practices and offer organizations the ability to efficiently manage their vendors and effectively track product/service quality.
An ideal vendor management application:
Vendor management applications can change and enhance the way your suppliers interact with your organization. These vendor management apps help you build a better vendor relationship by establishing accountability in the process, ensuring transparency in every step, accelerating the process crying, and improving the quality of supplier interactions.
Regardless of the process that you need to improve, a tailor-made automated process will go a long way than using a disparate application. With a reliable platform like KiSSFLOW, businesses can not only optimize their vendor management process but also reduce cost and save time.
Ditch your off-the-shelf, inflexible vendor management applications today and tailor your own vendor management process on KiSSFLOW.