7 features to look for when choosing Vendor Management Software

Vinay Agrraval
October 8, 2020

If you have understood the concepts of Vendor Management, the roles of a Vendor manager, then you might have as well know the pros and cons of Vendor Management Software. However, as procurement is a never-ending process, businesses are looking for the right vendor management software. The process of understanding the nuances of this software and checking if it fits your requirement is mostly a confusing decision.

We say that picking the right Vendor Management Software is challenging because, a procurement process embraces several steps like deployment, cost scalability,tracking of the progress, communicating with the vendor, and so on.

With so many options laid before you, it might be confusing to choose the right procurement solution for your organization, and we are here to make clear this mix-up. From our experience working with Vendor Management Software, we have come up with the seven must-have features one has to look for when choosing a Vendor Management Software.

The must-haves:

 1.     Vendor Management Software – One-stop shop: It might be a popular term used for something that does multi-tasking. VMS is also a multitasker that allows the user to maintain records about the entire procurement cycle,separate documentation, approvals, order requests, order status, and more.

 2.    Budget manager:One more important aspect of procurement management is budget. It is vital to track and manage the budget as this has a direct impact on the organization.

 3.   Supplier life cycle management: As mentioned earlier, the Vendor Management process is a mix of multiple steps, and supplier life-cycle management is one of the core functions. VMS software helps in identifying, onboarding, managing, and analyzing suppliers across different departments and categories.

4.   Seamless integration:If you procure software and it works as a standalone, then it does not help in handling multiple scenarios. Whereas, one should look for a good procurement platform that lets you integrate third-party tools also for better functionality. These tools can be related to accounting, finance, purchase of goods, and more. 

5.   Reporting for better understanding: While looking for an ideal vendor management software, when you are searching for data or want to retrieve data, the information should be presented – something like a report with all the details stated. Reports serve an easy and comfortable purpose of explaining the entire information, simplifying the decision making.

 6.  On the cloud: With almost all the software being cloud-based, having a cloud-based vendor management software makes it accessible, which is a must in today’s on-the-go settlements or discussions.

 7.   Self- serve portal: Another appreciable feature of the vendor management software is there is a transparency between the buyer and the service provider. This self-serve portal is a feature that one can look for before procuring the software.

 You may have to visit a good amount of time to choose the best fitting software for your organization. As soon as you get it, the waiting will turn out to be worthy of the special features, wherein the user can have accessibility and management of the entire procurement life-cycle.