What to Look for in a Vendor Management System
Between constantly vetting, contracting, onboarding, and continually verifying vendors, it’s entirely too much work to use modular means. Cracks form between modules and crucial information is likely to fall through them.
To realistically succeed, you need a comprehensive solution from a dedicated tool. In other words, you need a vendor management system.
The entire purpose of using a VMS is to help your business, from beginning to end, establish and maintain good vendor relationships. This is all done seamlessly, with no cracks in sight.
The Benefit of Having the Right Vendor Management System
As previously stated, the overall purpose of a VMS is to establish and maintain good vendor relationships. To achieve this lofty, all-encompassing goal, there are quite a few components that must fall into place perfectly.
For example, relations will certainly be strained unless there is a streamlined process of selection and approval, a high level of safety and regulation compliance, wide visibility across all business units, and a savings of both time and money. This all must be accomplished consistently and efficiently. While it seems like an impossible task, it’s easily done by aligning all these components in one system and process. When they are, you and your vendors can focus more on developing trust, which leads to stronger, mutually beneficial relationships.
What Features to Look for in a Vendor Management System
Before you pick just any VMS that promises solutions to your vendor management issues, you want to make sure it can deliver. To do so, it must incorporate the following capabilities:
When it comes to specific features, your chosen VMS should include:
Quick and easy vendor access and onboarding with multilingual competence.
The ability to rate vendors according to KPIs such as policy compliance, quality of deliverables, and timeliness.
A clear and quick view of compliance and noncompliance
Alerts for vendors to update information and order details.
Screening and verification of vendors for proof of financial, regulatory, and insurance compliance.
Corrective plans for initiating corrections or offboarding.
What Questions to Ask Before Committing to a Vendor Management System
When speaking to a vendor management system representative, ask the following five questions. You want each of the answers to be in the affirmative:
Does the system control all aspects of vendor management?
Does it utilize an easy-to-understand dashboard for quick access to information?
Does it integrate easily with other software, such as accounting and HR?
Does it provide useful metrics and real-time reporting functions?
Does it scale up or down easily?
Does it come with reliable technology and attentive customer service?
Once you’re convinced that the VMS you’re researching offers the features you want and covers your concerns, it’s time to give it a try yourself. Participating in a demo will help you understand the software itself better, and also give you a chance to work with the VMS’ customer service representatives to find out if they are attentive, knowledgeable, and helpful.
When cutting-edge technology meets an industry’s specific needs for vendor procurement and maintenance, everything has a tendency to just work. It heightens your visibility and secures your best interests.
Avetta does this for you. Our vendor management system is second to none. Whether you are in the chemical, manufacturing, telecommunication, or transportation industry, you have a lot on the line.
Avetta can help you:
To learn more about Avetta's vendor management system visit our website, call 844-633-3801, or email email@example.com