Vendor management involves selecting suitable vendors, sourcing pricing information, collecting quality details, evaluating amongst different vendors and maintaining relationships with them. Vendor management is the process of minimizing the costs in procuring supplies, maintaining effectiveness and quality and avoiding possible vendor risks. A robust vendor management system can help in increasing productivity, add value to operations and drive long term growth of organizations.
Many organizations face many challenges in the implementation of vendor management. Few among them are-
1. Handling multiple vendors is very complex and difficult. Maintaining the quality across vendors is time-consuming. Coordinating activities among various vendor is also a critical process.
2. Maintaining vendor data- A secure and easy to use data storage system is necessary to maintain all the vendor-related data.
3. Vendor payment- Organizations face major issues while dealing with multiple vendor payments. The payment structure varies with each vendor and ensuring effortless and uncomplicated payments is essential.
4. Compliance risk- Different standards and policies may have to be set while dealing with different vendors. This may lead to increased complexity. Hence choosing vendors who adhere to the organization’s policies and standards is important.
Vendor management is a very crucial and critical process in an organization’s operations. Ensuring the smooth functioning of this process, in combination with other processes is very important. Manually vendor management may prove to be challenging and time-consuming. The probability of errors is also very high.
There are numerous vendor management platforms which can help in ensuring a trouble-free vendor management system. These platforms help in integrating vendor management with business goals and objectives. It can aid in preventing wastage of resources and duplication of efforts. All vendor related information can be stored in a streamlined and categorical manner. It also enables minimization of vendor risk and coherence in the activities of the vendors with the goals set by the organization. Another major advantage is- performance of the vendors can be analyzed and measures can be taken in order to improve it. This is very important as companies invest a lot in the vendors and it is essential to know the returns on their investment. It can be done by setting KPIs and constantly monitoring them. Audits are also highly simplified and automated reports are produced with the data, for easier analysis.
Vcomply is an integrated, user-friendly GRC platform that helps organizations in effective vendor management. Vcomply provides various features for governance, risk management, compliance management, performance management, audit management and many more. Through these modules, vendors can be used efficiently to achieve better results. Handling risks and regulatory policies and compliances is also easy with Vcomply. Apart from vendor management, Vcomply can be used to monitor a plethora of other processes in the organization.