Vendor management solution or vendor onboarding management solution helps in gathering documents and data from a company or individual, verify the details and set it as an approved vendor.
It enables the management to efficiently run the business, purchase goods and services, and make payments on time. It mitigates the risks of fraudulent vendors by providing compliance and validations in an automated manner. Risk rating of vendors is based upon a company’s specific risk tolerance. The vendor onboarding process involves industry-specific vetting and validation, and a good vendor management system is efficient enough to meet these industry-specific requirements. What are the functions of a vendor management solution? A vendor management system is responsible for mainly the following three functions. Vendor engagement It is an effective and globally accessible channel that enables easy communications between the company and the associated vendors. This system ends the need for the physical presence of communication between the parties. The solution will help to ensure ongoing risk management and compliance by providing an audit trail and record-keeping of all activities and related data or documentation. Project management It is a very convenient tool and can perform the following task related to project management.
Payment management You can easily make payments to the vendors or contractors based on the material received or work completion. There is no chance of paying for material never received or service that is yet to complete as you have all the associated records with you. What are the features of a good vendor onboarding management solution? A good vendor management solution should have the following qualities. Easy to use The management solution should provide an easy Graphical User Interface (GUI) so that end users can work on it easily without requiring special training. Compatibility and integration Several other systems are running with a vendor onboarding system. So it must be compatible with them and support integration if required. Facilitate payroll and work hours logging The vendor management solution should have the facility to track your contractor’s working hours so that you don’t need to fill it manually at the end of the week or month. Based on the working time, it needs to automatically calculate the payment to end the need for a separate payment system. Compliance and regulations A vendor onboarding management solution must meet the industry-specific compliance and regulation validation facility. Provide training to the existing vendors and staff The software company should provide training to the existing staff and vendors to work easily and efficiently on the system. Project management If you need to assign different tasks to the vendors according to their skills and abilities, the software solution must handle and track all the activities and their workflow. Security and reliability The vendor management system needs to provide a safe and secure environment to the business processes and be reliable. It must not collapse during peak hours.
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April 2021
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