Vendor Management System helps to manage the company's suppliers and the processes related to it.
What Does Supplier Management Involve?
Supplier management encompasses a wide range of processes that companies use to manage their interactions with suppliers. These processes can vary significantly across different industries, and thus, the scope of what a Vendor Management System (VMS) addresses can also differ. For most businesses, supplier management includes:
Relationship Management: Using a Vendor Relationship Management (VRM) system, you can record all relevant information about suppliers, such as contact details, order history, and communication logs, tailored to your needs.
- Contracts: Managing agreements with suppliers.
- Supply of Goods or Services: Overseeing the delivery of products or services.
- Invoicing: Handling invoices for delivered goods.
- Quality Control: Ensuring the quality of supplies.
- Risk Management: Mitigating risks associated with suppliers.
Effective supplier management reduces the risk of supply chain disruptions and ensures that goods and services are delivered on time and meet the expected quality standards.
- Cost Control: Monitoring and managing costs.
- Document Management: Enabling employees to efficiently manage and store documents such as invoices and contracts. Documents can be easily searched and filtered by various criteria, such as date, document type, or page.