Vendor management is a crucial process for all businesses. But not all businesses do it with class.
Your business depends on many external partners to research, source, and supply you with materials and services. These vendors range from established businesses to freelancers across the world. Maintaining good relationship with your suppliers means you can save costs, bank on getting quality resources on time, improve your cash flow, and establish competitive pricing for your own business.
Statistically speaking, 79% of organizations with high-performing vendor management workflows are likely to achieve their revenue goals better than the average in their industries. If your business takes vendor relations seriously, you should start automating the processes around it.
Just like your internal business operations, your vendor management workflow is an important aspect of your business that demands time and commitment. Managing relations with vendors require you to obtain quotes, negotiate prices, assign jobs, track contracts, and make payments. When not handled properly, this can lead to chaotic circumstances.
Here are a few workflow automation ideas related to vendor management workflow that can give you a tailwind to your revenue goals.
When the vendor onboarding process is done on paper, it can take several days or weeks to review a vendor. Often, the supplier information has to go through multiple stakeholders until it gets approved and the vendor is added to your master database.
You can speed up the process with automation. Instead of having to copy information back and forth from emails, set up a public form that any new vendor can use to enter all of their information one time. As soon as they submit the forms, approvers in your company can review the data and take quick actions. All data can be automatically routed to data sets and other software without needing to copy and paste anything.
Vendors can also get a notification about the approval process as it moves on.
Paper-driven contract approval processes are slow and inefficient. In our fast-moving world, no one has time to type out a new contract, print multiple copies, and wait for signatures to come in from various offices. And if things go wrong, the contract is returned to the vendor for corrections and routed again for another round of approval.
An automated contract approval process is a vendor management workflow that can cut this route short and bring efficiency to your contract review and approval process. A vendor can attach their contract proposal through the workflow automation software shared with them, while your business can review and negotiate the contract terms from their systems.
The purchase order process in many businesses can be so archaic that it actually hurts the organization. Manual purchase orders happen in a roundabout manner, where different stakeholders don’t have clarity and visibility to see the big picture.
When you automate the procurement process in your business, you can tie up a lot of loose ends. With automated forms, a department head can fill out a standard purchase order that automatically pulls up the right vendor and items approved for purchase.
One of our customers, SAPIN, testified that using Kissflow reduced their processing time for purchase orders by 75%. They were incredibly happy to see an audit trail for all purchase
Vendor payment is a complex process for all businesses, no matter how big or small. While your finance department manages most accounts through their accounting software, the pace for a vendor payment slackens when it’s being communicated via email exchanges and phone calls.
Automating the vendor payment process ensures that everyone involved in the process has the visibility to see what’s happening with a payment request. Once an invoice is received, a finance personnel can select details from the pre-populated fields like vendor name, invoice date, invoice number, PO number, total amount, etc. You can even reference your vendor master sheet for address, contact number, or other details.
Maintaining a good relationship with vendors is a strategic skill that can help you achieve your business goals. Automating your vendor management workflows helps you reduce operational costs, build loyal business relations, and mitigate supply-chain risks.
If you haven’t automated your vendor management workflows yet, you can try it for free. Sign up with Kissflow for a free 30-day trial, install the Vendor Registration App from your account, and see how easy it is to kickstart a vendor management workflow on your own