Evolution of Digital workplace has created a broader environment for technological proceedings. This technology is considerably helping the business to strategize their actions for achieving the objectives. Vendor Management is adopted by many progressive organizations for their work processes. Companies and enterprises relying on multiple third party solutions to manage vendors. However managing the vendors virtually on a portal can lead in a complex and chaotic task.
Vendor Management Software offers organizations with a competent way out for the vendor management process and obtains a complete view of vendor relationship and vendor risk. The services which portals possess include;
- Vendor due diligence
- Vendor risk assessments
- Vendor contract review
- Ongoing monitoring
It is basically a web based solution that allows collaboration with vendors in a secure online network. This way the vendors can easily provide on-boarding information and also allow the existing vendors to submit invoices for payment and also enable them to initiate the payment with performing 24 x 7 payment inquiries. Such vendor management portals help the business organizations to maintain long term vendor relationships.
Creative Social Intranet is a compact Intranet solution serving various comprehensive solutions for business along with inbuilt Vendor Management Portal. It serves as a platform for various factors concerning the vendor management portal. The portal offers additional benefits beyond the risk mitigation and ensuring compliance such as reduces the costs, improves contract terms and even actually helps to drive more effective results from vendors. The whole process of vendor management has been enhanced thoroughly via digital functioning along with whole control over vendors and contracts.
Benefits served by Vendor Management
Manage vendor along with third party risk
As the vendor management is a centralized portal to regulate the vendors of the organization it tracks and identifies risk in case of incurring costs, regulates the efficiency in the transactions and takes actions to reduce the risks. The portal entitles the organization to give more visibility.
Enables Operational and financial efficiency
Vendor Management portal offers such services which are of optimized quality and manages the business volume. The data storation of all the vendors, contracts and insurance and other related documents are saved and formulated at one single server. Analysis also pertains regarding these factors which prevents data duplication, loss of contracts and other vital information.
Lower Freight for Transaction
The freight turns out to be a huge inventory cost. The portal allows organizations to focus on suppliers that will reduce the cost through large volume shipments. Further with the centralised system it can be ensured that everything is in budget.
Proficiency In Vendor performance
The Software could easily track the performance of the vendors. The objective assessments function offers an actionable feedback to the vendors on improving the quality and standards in order to upgrade the performance.
Highlights of Vendor management portal
Compliance Management in the portal mentions that vendors will access protected data to priorly notify the financial institution of the security breach. As some industries require specific processes to comply with local legislation and regulations. Institutions such as Banks, construction projects and medical fields, etc are the ones that demand vendor management software with support for specific functions, workflows and training procedures.
Offboarding is a third party vendor just as important as onboarding in the first place. If failure occurs in offboarding can expose the organization to compliance breaches and data breaches. Creative’s vendor management portal ensures that everything is in process and nothing is missed, minimizes the risk and compliance is achieved. The portal makes the separation process handled appropriately, including the return of property and assurance of data destruction.
Vendor Performance Management (VPM) means monitoring the reliability, quality and performance of a company’s vendors. This enables the companies to reduce the stock levels and inventory costs and improves customer satisfaction. The performance metrics is usually measured by a series of agreed and contractual Key Performance indicators (KPI’s). Often the vendor management portals use dashboards or balanced scorecards to measure a vendor’s performance.
Self Service Portal
Vendor Management Portal allows third parties for multi-tiered assessments, identify remediation strategies and also share the results with upstream business partners. The portal also enables the users to add comments on assessments and accept the reviews of materials. The vendors can manage their own assessment data and share it with business partners on an individual basis.
After the objectives and functions are set up into the portal, the next step should be to build and update a categorized database of all relevant vendor and vendor related transactions. This can majorly benefit the needs of business units and also the administrators can identify the actual vendors for whatever they are in need. After the categories are set depending on their type, cross vendor comparison can get easier. This can accompany to store the scattered, disparate vendor information at a single location and consequently provide insights for that particular stage of vendors.
The Process of payment to the vendors is the second step on the purchase to pay cycle. When the goods are ordered the suppliers raise a Purchase order(PO) and when the goods and service arrives, the company gets the invoice from the supplier. If the goods and service matches with the PO, the details are entered into the Account Payable System. The process of centralised payments has got a number of advantages from a corporate point of view. The advantages lie in the subsidiaries, as they are keeping the control of the funding and payment process. The vendor management centralization factor of the payment process improves control for the organization.