Efficient vendor relations management forms the crux of an efficient business venture. From a small-scale startup to a multination-level business, having all these right tools to centralize communications, track performances and optimize contracts can indeed save a business from world distress.
This is exactly when the business needs its application, VMS is a specialized tool designed to help businesses efficiently manage their relationships with vendors, suppliers, or service providers.
It centralizes vendor-related data and automates tasks like onboarding, contract management, performance tracking, compliance monitoring, and payment processing.
In this blog, we’re going to explore the best vendor management software solutions to transform the way you do vendor management for the smoothest, smartest, and most efficient process ever.
Top Features of Vendor Management Software
VMS offers a wide range of features designed to enhance vendor relationships and streamline operations. Here’s the top Features:
- Centralized Vendor Database: This centralized vendor database pools all vendor information into one place that can be easily accessed. This ensures that stakeholders have access to current information and decision-making will be faster, and audits will have fewer errors.
- Vendor Onboarding and Registration: VMS automatically allows vendors to onboard, and it lets the vendors self-register, upload their documents, and perform the necessary compliance checks. This reduces the onboarding time cycle, administrative tasks, and proper vetting at the onset.
- Contract Management: VMS puts all contracts in one place, tracks expiration dates, and sends automated reminders to renew. This will enable businesses to stay on top of contract terms similar like CLM systems, avoid missed deadlines, and be compliant through easy access to contracts and related documents.
- Performance Tracking and Analytics: With the in-built tracking tools, VMS enables businesses to track vendor performance through KPIs. This feature provides real-time data and analytics that help businesses make informed decisions on vendor relationships and identify areas for improvement.
- Compliance and Risk Management: VMS automates compliance tracking by sending alerts for expiring certifications or missing documents. It helps businesses stay compliant with regulatory requirements, reduces risk, and ensures vendors meet industry standards, minimizing legal exposure.
- Invoice and Payment Automation: By automating invoice generation, approval workflows, and payments, VMS eliminates errors and speeds up transactions. This ensures accurate payments, timely processing, and helps build stronger relationships with vendors through prompt and reliable financial management.
- Communication and Collaboration Tools: VMS has integrated communication features that make it easier to communicate between businesses and their vendors. All conversations and updates are logged, avoiding miscommunication and keeping all parties on the same page.
- Procurement Automation: Automating the procurement workflows in VMS eliminates all manual tasks, which means speeding up the purchasing process. It ensures timely order placement, minimizes errors, and improves procurement efficiency. Thus, it becomes easy to manage large volumes of orders and payments.
- Customizable Workflows: VMS offers to change the workflow to a tailored shape according to specific company requirements, making sure it complies with processes used within the organization. Through tailored approval paths, vendors could be categorized, and other forms of compliance can follow because business needs evolve accordingly.
- Integration to other systems: VMS ties up with other organizations that have ERP, CRM, and accounting packages on-board. It eliminates repetitive transfer of data and the application of uniform approach at large in the handling vendor’s relationship.
- Scalability: The Scalable VMS will help grow with your business; it accommodates more vendors and complex processes. Scalability means that the system can increase with demand in your business without being replaced.
- Audit Trails and Reporting: The VMS tracks all interactions with vendors and transactions by the use of audit trails to provide transparency and accountability. Customizable reporting features can be used to create reports on vendor performance, finance, and contracts to better make decisions.
List of 14 Best Vendor Management Software
1. SAP Fieldglass
SAP Fieldglass initially started as Fieldglass, founded in the 1990s and later obtained by SAP, is the most powerful VMS and is used to help firms manage their service providers proficiently.
It is applied in oil and gas, construction, and utilities, which are always dependent on contingent workers freelancers, contractors, as well as temporary staff among others.
With SAP Fieldglass, organizations can streamline the processes of sourcing, managing, and paying these external workers, thereby enhancing efficiency and compliance.
With the help of SAP Fieldglass, businesses can ensure smooth operations, reduce risks related to vendor management, and develop better relationships with external service providers.
Key features:
- Invoice Processing
- Purchase Order Management
- Safety and Training Management
- External Worker Onboarding
- Statement of Work (SOW) Project Tracking
- Vendor Performance Monitoring
- Compliance Management
- Payment Processing
Pricing:
- Customized pricing based on business needs
- Contract-based sales model
- Significant licensing and implementation costs
- Post-implementation fee of around 2.2% of total invoices processed
Website: https://www.fieldglass.net/
2. Airbase
Airbase is a full spend management solution for small and midsize companies. It integrates the accounts payable software (AP), corporate card programs, and employee expense reimbursements under one roof.
It aims to automate financial operations while helping the business improve the visibility into spending and the control of cash flow and budgeting.
Airbase’s system eliminates the need for individual tools, consolidating a host of spend management functions within one platform to avoid mistakes, increase accuracy, and improve overall operational efficiency.
Key features:
- AP Automation Vendor Portal
- Vendor Onboarding
- Payment Information Management
- Contract and Tax Document Management
- Payment Processing
- Corporate Card Program Integration
- Employee Expense Reimbursement
- Spend Visibility and Control
Pricing:
contact them for pricing details
Enterprise: Up to 10,000 employees
Premium: Up to 500 employees
Standard: Up to ~200 employees
Website: https://www.airbase.com/
3. QuickBooks Online
QuickBooks Online (QBO) is the accounting software that allows businesses to monitor income and expenses and completes all accounting work so as to prepare for tax filing.
QBO does not act as a vendor management software, but integrates nicely with VMS, along with finance tools including the vendor-related features in them, such as Rho and Procurify.
It helps in the efficient streamlining of accounting and vendor management processes. In addition, the owner of QuickBooks, Intuit, has recently launched QuickBooks Money, a new bill payment solution that provides small businesses with basic payment capabilities, enhancing the utility of the platform further in managing financial tasks.
Key features:
- Income and Expense Tracking
- Accounting and Financial Management
- Tax Filing Preparation
- Integration with Vendor Management Software (e.g., Rho, Procurify)
- QuickBooks Money for Bill Payment
- Basic Payment Capabilities for Small Businesses
- Seamless Integration with Finance Tools
Pricing:
contact them for pricing details
Simple Start: $35/month ($17.50/month for first 3 months)
Essentials: $65/month ($32.50/month for first 3 months)
Plus: $99/month ($49.50/month for first 3 months)
Advanced: $235/month ($117.50/month for first 3 months)
Website: https://www.airbase.com/
4. Onspring
Onspring provides an end-to-end platform for vendor risk management, making it possible for businesses to onboard new vendors, perform due diligence, and approve vendors with relative ease.
The software streamlines processes for evaluating and approving vendors, thus ensuring compliance and minimizing exposure to risks. However, Onspring lacks functionality in managing invoices and making payments to vendors.
Businesses will have to depend on other solutions to execute these tasks, making the overall process of vendor management complicated.
Key features:
- Vendor Onboarding
- Due Diligence and Compliance Tracking
- Vendor Approval Management
- Risk Assessment and Monitoring
- Reporting and Analytics
- Customizable Workflow Automation
Pricing:
contact them for pricing details
Bronze: Foundational platform services and storage.
Silver: All Bronze features, plus additional data storage and a development environment.
Gold: All Silver features, with increased storage, support, and both development and testing environments.
Platinum: Full menu of expanded features, more storage, higher API call limits, 24/7 support, and multiple environments for development, testing, and production.
Website: https://onspring.com/
5. Gatekeeper
Gatekeeper is a comprehensive vendor management platform that helps businesses efficiently manage purchase requests, vendor onboarding, and approval workflows.
While the platform excels in these areas, it does not offer functionality for managing invoices or making vendor payments. As a result, companies will need to integrate additional solutions to manage financial aspects of vendor relationships, which can introduce complexities.
Despite this, Gatekeeper provides valuable features to the business to streamline the processes involved with vendors while offering insights into vendor performance and risk.
Key features:
- Contract Management
- Contract Renewal Alerts
- Vendor Risk Assessment
- Vendor Performance Reporting
- Integration with Other Software
Pricing:
4 tier plan as given below:
Essentials: $1,245/month (Paid annually)
PRO: $2,995/month (Paid annually)
ENTERPRISE: $5,295/month (Paid annually)
ENTERPRISE CUSTOM: A fully bespoke plan for large customers
Website: https://www.gatekeeperhq.com/
6. PRM360
PRM360’s module on vendor management software centralizes all data about vendors and suppliers, providing a comprehensive view of all vendor interactions in one platform. This helps businesses streamline processes, improve decision-making, and ensure better performance management.
The software supports essential vendor management services such as vendor profiling, strategic sourcing, and third-party risk management. These features are designed to help companies select and manage the right vendors, monitor performance, and mitigate risks.
By integrating seamlessly with Enterprise Resource Planning Software (ERP), PRM360 ensures that all critical documents such as contracts, quotes, invoices, and purchase orders are easily accessible, thus making it efficient to manage the entire lifecycle of vendors.
Key features:
- Vendor Deliverables Management
- Performance Tracking
- Vendor Comparison
- Compliance Monitoring
- ERP Integration
Pricing:
contact them for pricing details
- Mid-Market and Enterprise pricing levels
- The Average Cost of a basic Procure to Pay Software plan is $142 per month.
Website: https://prm360.com/
7. NetSuite
NetSuite’s ERP system is a robust, integrated solution that automates critical business processes such as accounting, inventory management, and human resources, helping businesses improve operational efficiency.
The Procurement module in NetSuite is designed to automate and streamline the procurement process, including purchase requisitions, POs, and approval workflows, thereby saving time and reducing errors.
The system centralizes all procurement-related data and communications, which enables businesses to manage their vendor relationships more efficiently. The vendor portal allows for the uploading of documents in real-time, as well as communication with the AP staff.
This also provides visibility into corporate spending and vendor performance. This kind of transparency enables informed decision-making and improved cost management.
Key features:
- Automated Procurement Process
- Centralized Data & Communication Hub
- Vendor Portal for Real-Time Communication
- Visibility into Corporate Spend
- Vendor Performance Tracking
Pricing:
contact them for pricing details
- Annual License Fee: NetSuite ERP follows an annual subscription model based on the core platform, optional modules, and the number of users.
- One-Time Implementation Fee: There is a one-time fee for the initial setup and configuration of the system. platform, optional modules, and the number of users.
Website: https://www.netsuite.com/portal/home.shtml
8. Qntrl
Qntrl is one of those versatile platforms made to centralize all work flows, messaging, information, and tools in just one place. That helps businesses see their entire picture at any given time.
By automating various business functions such as accounts payable, marketing, HR, customer support, and IT, Qntrl promotes smoother, more efficient workflows. This level of automation not only saves time but also reduces the risk of human error.
The Qntrl vendor management solution further enhances operational efficiency by centralizing all vendor data and communications, making it easier to manage relationships and streamline procurement workflows.
Key features:
- Centralized Vendor Data & Communications
- Vendor Document Submission
- Automated Invoice Approvals & Payments
- Vendor Onboarding
- Vendor Performance Monitoring
Pricing:
- Standard Plan: ₹900 per user/month (billed annually), offering unlimited workflows, process automation, and centralization.
- Enterprise Plan: ₹1800 per user/month (billed annually), with additional features like process compliance, extensibility, and enterprise security.
- Custom Plan: Custom pricing for larger enterprises, including all Enterprise features plus enhanced data protection and IT orchestration.
Website: https://www.qntrl.com/
9. Vanta
Vanta is an all-around risk management solution that comes with vendor management services focused on vendor risk assessment.
It does not manage accounts payable or payments but rather integrates with your ERP or accounting system to identify the vendors, assess their risks, and align with your procurement workflows.
The platform uses a sophisticated rubric to evaluate the risk associated with each vendor, based on factors such as access to sensitive data and their role in your business.
This helps businesses ensure that their vendor relationships are secure and compliant with internal risk management standards.
Key features:
- Vendor Risk Scoring
- Pre-built Integrations
- Risk Assessment Rubric
- Sensitive Data Access Evaluation
- Integration with ERP and Accounting Systems
Pricing:
- Core Plan: For teams starting with compliance, offering a single framework, 375+ integrations, access and vendor management, policy templates, and role-based access controls.
- Growth Plan: For scaling teams, adding custom fields, automated access reviews, risk customization, and advanced security features like questionnaire automation and extra reports.
- Scale Plan: For advanced compliance teams, including everything in Growth, plus 24 questionnaire automations, custom role-based access, SCIM, and customizable reports.
Website: https://www.vanta.com/
10. Kissflow Procurement Cloud
Kissflow Procurement Cloud is a comprehensive, cloud-based solution that is designed to simplify and automate the entire procurement process. It manages purchase requisitions, POs, invoices, approvals, and vendor relationships in one place.
Centralizing these processes streamlines workflows and ensures efficient, transparent, and compliant procurement operations.
With built-in integrations, Kissflow can easily connect with other systems, such as accounting and enterprise resource planning (ERP) software, further enhancing its ability to automate tasks and reduce manual efforts.
This makes Kissflow an ideal solution for businesses looking to optimize their procurement operations and improve overall efficiency.
Key features:
- Vendor Registration Template
- Customizable Workflows
- Automatic PO Generation
- 3-Way Matching
- Automated Approvals
- Analytics and Reporting
- Vendor Data Access for AP Team
- Integrations with Other Systems
Pricing:
Basic Plan: Starts at $1,500/month (includes 50 users)
Enterprise Plan: Custom pricing
Website: https://kissflow.com/procurement/
11. Precoro
Precoro is a comprehensive cloud-based SaaS solution for optimizing the procurement process of businesses of all sizes.
The platform automates the purchasing workflow to help organizations streamline spending requests, approvals, and document management to reduce manual effort and human error.
With Precoro, businesses can easily handle vendor onboarding through a dedicated portal, allowing suppliers and accounts payable teams to exchange data and documents in real-time.
Its user-friendly interface lets users have approval workflows according to different criteria, which ensures all spending decisions made are on the right path according to organizational policies.
Key features:
- Supplier Onboarding Portal
- Vendor Invitation and Approval
- Customizable Workflows
- Role-Based Access Control
- Automated Spending Workflows
- Approval Criteria Customization
- Document Management & Storage
- Data Sharing & Communication
Pricing:
- Core (Starts at $499/month, billed annually)
- Automation (Starts at $999/month, billed annually)
- Enterprise (Individually tailored pricing, billed annually)
Website: https://precoro.com/
12. Tradogram
Tradogram is an all-in-one procurement management system developed to optimize and automate all the key aspects of a procurement process, such as vendor management, purchase order intake, and payment processing.
This software helps streamline the purchasing workflows of a business, improves relationships with suppliers, and offers more control over spending. It accelerates invoice processing, simplifies vendor onboarding, and provides faster operations.
This helps the platform to secure better deals, improve spend control, and reduce manual administrative work, thus helping organizations attain cost savings and operational efficiency in their procurement activities.
Key features:
- Vendor Management
- Purchase Order Intake
- Payment Processing
- Automation
- Invoice Processing
- Spend Control
- Supplier Relationship Management
Pricing:
PRO: Starting at $198/month
PREMIUM: Starting at $380/month
ENTERPRISE: Custom Quote
FREE BASIC: One user only
Website: https://www.tradogram.com/
13. Ramp
Ramp is an all-in-one finance platform, specifically designed to simplify and automate financial operations for modern businesses.
Ramp provides a comprehensive set of tools including corporate cards, expense management software, bill payments, and vendor management, that can help the finance team to efficiently process their processes.
Ramp has automated some of the most important tasks that help in saving time, reducing costs, and improving operational efficiency.
Ramps has been trusted by more than 20,000 companies including Shopify, Zola, Opendoor, and Glossier in providing proven benefits to save an average of 5% more for organizations and to close the books up to 8 times faster while supporting healthier financial practices and smoother business operations.
Key features:
- Corporate Cards
- Expense Management Software
- Bill Payments
- Vendor Management
- Financial Automation
- Faster Book Closing
- Cost Savings
- Integration with Leading Businesses
Pricing:
- Free ($0/mo/user)
- Plus ($15/mo/user)
- Enterprise (Custom pricing)
Website: https://ramp.com/
14. Venminder
Venminder is a market leader in third-party risk management solutions. It offers a centralized platform designed to streamline the management of vendor and supplier risks.
Its comprehensive tools include vendor onboarding and offboarding, document storage, contract and SLA tracking, questionnaire management, risk assessments, workflow creation, and detailed reporting.
This makes it possible for organizations to effectively manage third-party relationships, ensure compliance, and proactively mitigate risks. Venminder’s solutions help businesses stay ahead of potential issues, reduce manual tasks, and improve overall risk management processes.
Key features:
- Vendor Onboarding and Offboarding
- Document Storage
- Contract and SLA Tracking
- Questionnaire Management
- Risk Assessments
- Workflow Creation
- Detailed Reporting
- Vendor Risk Mitigation
- Compliance Monitoring
Pricing:
contact them for pricing details
- Professional: Designed for organizations that need all the key capabilities to run their vendor risk management program
- Enterprise: Designed for organizations with a mature or complex vendor risk management program
Website: https://www.venminder.com/
Why Do Businesses Need Vendor Management Software?
The most critical aspect of any business is managing vendors, which often comes with its own set of challenges.
Be it juggling multiple contracts, ensuring compliance, and maintaining effective communication, the issues related to vendor management can become overwhelming very fast.
This is where Vendor Management Software (VMS) comes into play by streamlining the process in dealing with these issues.
Common Issues Related to Vendor Management:
1. Dispersed Data and Processes
- Businesses often find themselves drowning in scattered vendor data lying across emails, spreadsheets, and documents. As a result, it proves to be inefficient and nearly impossible to access the information when most needed.
- How VMS Helps: A VMS centralizes all vendor-related data, making it easily accessible and well-organized for better decision-making.
2. Lack of Visibility into Vendor Performance
- Without proper tracking, businesses may struggle to assess the reliability, quality, and adherence to deadlines of a vendor.
- How VMS Helps: VMS provides tools to monitor and evaluate vendor performance using metrics and analytics, ensuring accountability and continuous improvement.
3. Complex Compliance Requirements
- Ensuring that vendors meet regulatory and industry standards can be a time-consuming and error-prone process.
- How VMS Helps: VMS automates compliance tracking, alerts for documentation updates, and generates audit trails, reducing risks and saving time.
4. Inefficient Communication and Collaboration
- Poor communication with vendors leads to misunderstandings, missed deadlines, and strained relationships.
- How VMS Helps: Many VMS platforms come with integrated messaging or collaboration tools that help to keep all parties in sync.
5. Difficulty in Managing Contracts
- Businesses face the challenges of tracking contract terms, renewal dates, and obligations, leading to missed opportunities or penalties.
- How VMS Helps: VMS streamlines contract management by automatically sending reminders for renewals and offers a single repository for contract storage and review.
6. High Costs and Uncontrolled Spending
- Without a clear system, businesses may end up paying more than they should, receiving duplicate invoices, or missing cost-saving opportunities.
- How VMS Helps: VMS optimizes procurement processes, tracks expenses, and identifies cost-saving opportunities through detailed financial insights.
7. Scalability Issues with Vendor Growth
- With increasing business, managing a greater number of vendors becomes challenging.
- How VMS Helps: VMS is built to scale. This enables businesses to manage an increasing vendor base without adding any administrative burden.
How to Choose the Right Vendor Management Software?
It is crucial to have the right VMS, which would be helpful for streamlining all vendor-related processes and improving operational efficiency. Here’s a step-by-step guide to make the best choice:
Step 1 - Assess Your Business Needs
It’s important to evaluate your existing vendor management processes before deciding on a VMS to identify pain points. This means areas such as compliance tracking, inefficient communication, or lack of monitoring of vendor performance.
Understanding these challenges will help you determine which features are essential for your business. Consider the scale of your operations, such as the number of vendors and the complexity of your procurement processes, to ensure that it meets your needs effectively.
Step 2 - Identify Your Budget
A clear budget will help guide the selection process and narrow options. Consider not only front-end costs such as licensing or subscription fees but also those hidden expenses, like implementation, training, and add-ons.
Balance value with affordability; a higher investment in the right software might actually save more money over time and prove more efficient.
Step 3 - Identify Key Features
Not all VMS platforms are created equal, so prioritize the features that align with your business requirements. Look for capabilities like a centralized vendor database, automated compliance tracking, performance analytics, and contract management.
If you handle a large number of vendors, ensure the software offers scalability. By focusing on must-have features, you can avoid paying for unnecessary functionalities.
Step 4 - Check Integration Capabilities
For smooth operations, integration with your existing tool kits, such as ERP, CRM, or accounting, is essential.
That said, this integration of systems would help eliminate siloed data, eliminate entry duplication, and increase cross-system consistency.
Consider and confirm the compatibility of VMS with your existing software stack during the assessment.
Step 5 - Usability first
A user-friendly interface ensures that your team and vendors can adapt to the software without heavy training. Look for intuitive navigation, easy setup, and clear workflows.
Most providers offer free trials or demos, which you can use to test the usability of the software before committing. This step ensures that the solution is practical and accessible to everyone involved.
Step 6 - Check Security and Compliance
Since the information shared with the vendors is confidential, the software needs to be highly secure. Check if the VMS complies with the current standards for data protection.
Features such as encryption and role-based access are to be available in the system. A safe system safeguards your data but also ensures the trust of your vendors.
Step 7 - Customization Options
Each business is unique, and the one-size-fits-all solution might not cater to your specific needs.
Search for VMS platforms that provide options for customization like customized workflows, custom reporting, or industry-specific features.Customization ensures the software matches your processes and goals to the dot.
Step 8 - Vendor Reputation Check
Choose a reliable software provider for reliability and long-term support. Research the company’s history, read user reviews, and case studies to know how they have helped businesses like yours.
A provider with a good track record and excellent customer feedback is likely to deliver a quality product and dependable service.
Step 9 - Assess Support and Training
Good customer support makes or breaks one’s experience with a VMS. Seek a solution that provides rich channels through which the support team interacts, including a 24/7 helpdesk or tutorials and onboarding.
The proper training materials then ensure that your staff has the means to rapidly accelerate and leverage the software’s real potential.
Step 10 - Provide for Scalability and Future Requirements
Your business will be likely to grow, and consequently, the vendor management will too. Choose a VMS which will be easily adapted by your growing demands whether for more vendors or features in it or in order to handle increased volumes of data.
A scalable solution provides you with avoiding switching of platforms as you scale operations.These considerations will help you select a vendor management software that is not only effective today but also adaptable to your business’s future needs.
Conclusion
In today’s fast-paced business environment, effective vendor management is essential for smooth operations and strong vendor relationships.
Vendor Management Software (VMS) offers a comprehensive solution to streamline processes such as procurement, performance tracking, compliance management, and contract oversight.
By choosing the right VMS based on your business’s needs—whether it’s focused on procurement, compliance, or performance—you can enhance efficiency, reduce risks, and improve vendor collaboration.
With multiple types of deployment methods and a wide range of industry-specific features, there is a VMS solution that suits the needs of every organization.
The right VMS would not only optimize vendor relationships but also contribute to long-term growth and success of your business.
FAQs
1. Which industries will benefit from VMS?
VMS can be helpful across many industries, including retail, manufacturing, healthcare, construction, IT, and technology.
Each industry has unique challenges in managing its vendors, and VMS helps businesses overcome these challenges by automating tasks, ensuring compliance, and improving vendor performance management.
2. How does Vendor Management Software enhance vendor relationships?
This has improved vendor relationships because the software offers transparency and much clearer communication between businesses and the vendors.
With real-time performance tracking, any problem is addressed promptly, making sure that it is sorted out in time and generating trust.
Automated workflows with regard to invoicing and payments also strengthen partnerships, ensuring smooth financial transactions.
3. What are the types of Vendor Management Software?
VMS can be classified based on features, such as procurement-focused, contract management-focused, or end-to-end solutions; industries, such as retail, manufacturing, healthcare; and deployment methods, such as cloud-based, on-premise, or hybrid.
The appropriate type of VMS depends on the organization’s specific needs and industry requirements.
4. How long does it take to implement a Vendor Management Software system?
This again will depend on the organization, its size and the solution’s complexity to deploy the VMS.
For a cloud-based platform, VMS implementation might take much less time in terms of deployment as an on-premise system needs setting up infrastructure and could be very time-consuming in itself.
In most cases, deployment takes weeks, if not months, in total for a custom deployment, but it really does depend on the scope.
5. Can Vendor Management Software be used for global vendors?
Yes, VMS is designed to handle vendors from different countries. It supports multi-currency, multi-language, and compliance with international regulations, making it an ideal solution for businesses with a global supply chain. It ensures that companies can manage diverse vendor relationships efficiently across borders.
