The Best Vendor Management Software of 2021

Our vendor management software reviews are the result of over 40 hours of research on 160+ vendor management software companies from across the web. These reviews and our vendor management software guide help small businesses and startups find the best vendor management software for their business.

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How We Chose the Best Vendor Management Software

Any company that purchases products or services from multiple companies or individuals can benefit from vendor management software. With so many software programs to choose from, it can be difficult to know which options are right for your organization’s specific needs. While compiling our list of the best programs, we took into consideration the top three criteria that matter most to companies – having an audit trail, integration capability, and reporting features.

Audit Trail

In the event of an audit, it’s important to have accurate financial statements and accounting records. A vendor management software program should keep all vendor information in one place for easy retrieval. The software should function as a storage center for contracts and vendor agreements, and it should also contain a list of critical vendors, due diligence documents, and any other essential information. You should be able to track all activities and changes to the data, including who entered the information and when. The software should also have an automatic update feature to make it easy to maintain.

Integrations

Vendor management software should work in conjunction with multiple software programs, including supply chain management and accounting software. Consider what programs you run to track purchasing, sales, and finances and identify which programs will run seamlessly. The software should streamline vendor management and decrease the workload of employees.

Reporting Features

A good vendor management program should be customizable and allow businesses to pull and print information it deems most important to the success of the company. Companies with a board of directors are required to keep members informed of vendor relationships through reporting. These reports might include:

  • Risk assessments
  • Total inventory of third-party vendors
  • Ongoing activity monitoring
  • Information about renewals
  • Terminations and any other problems with current and past vendors
  • Reports on major changes with high-risk vendors

The 15 Best Vendor Management Software Options of 2021

CompanyPriceFree Trial / DemoMore
BeelineCustom quoteDemoVisit Beeline
Coupa SoftwareCustom quote30-day free trialVisit Coupa Software
GatekeeperEssentials: $775/month
Pro: $1,855/month
Enterprise: $3,325/month
Free trial and demoVisit Gatekeeper
IntelexCustom quoteDemoVisit Intelex
KissflowStarter: $390/month
Growing: $1,000/month
Enterprise: $2,000/month
14-day free trialVisit Kissflow
NetSuiteCustom quoteDemoVisit NetSuite
PrecoroSmall: $29/month/user
Medium: $24/month/user
Large: $19/month/user
Enterprise: Custom quote
14-day free trialVisit Precoro
ProcurifyCustom quoteDemoVisit Procurify
SAP AribaCustom quoteDemoVisit SAP Ariba
SAP FieldglassCustom quoteDemoVisit SAP Fieldglass
ShortlistCustom quoteFree trialVisit Shortlist
TradeshiftCustom quoteDemoVisit Tradeshift
TradogramBasic: Free
Premium: $15
Enterprise: Custom quote
Free account and demoVisit Tradogram
Vendor Management$175/user/monthDemoVisit Vendor Management
Zycus iSupplierCustom quoteDemoVisit Zycus iSupplier

Beeline

Beeline
Beeline is a vendor management software program that helps companies manage their nonemployee workforce. This SaaS solution is web-based, which makes it easily accessible for those traveling or working remotely who need to manage vendor activity while in the field. Pricing depends on the number of options and customizations chosen. A demo makes it possible for business owners to see the program in action before committing to buy.

Beeline automates all your current processes, which can save employees time and the business money. It makes it easier to locate problems in the workflow and address them immediately. The software helps reduce risks and improves consistency through company policies and vendor compliance. Administrators can set up multiple users’ views depending on privacy concerns. The program requires very little training, so it can be used by nearly anyone.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based deployment
>Shows transaction history
>Ability to access offline
>More features at Beeline

Pros & Cons of Beeline Vendor Management Software
Beeline makes it possible to see the lifecycle of any vendor in a single location, from financials and billing to order milestones and user activity. It can track time and attendance of vendors and can store invoices, which creates an audit trail for increased protection. Beeline doesn’t integrate well with existing software programs, which can make it difficult for established businesses to transition to the program. However, it’s easy to use and navigate.

ProsCons
>Reporting
>Audit trail
>Lack of integrations

What Customers Are Saying
Customers appreciate the ease of use of this software program. One customer said, “I’ve been working on Beeline (vendor Management system) for over 2 years. It does not require any IT expert skills to use the software. You just need a user login and password to access the application.”

Coupa Software

Coupa
Coupa Software makes it possible to view supplier information, track invoices, view merchandise, and quickly and easily get any additional information regarding products and services. Users can get vendor information, invoice data, and view POs in one place. The program can send out automated emails, capture paper invoices for storing online, and digitize the entire supply chain, including monitoring supplier risk, onboarding, and maintenance.

Coupa is a web-based program, so no downloads are required. It is also easily accessible in the cloud, so you can get facts and figures from your Android or Apple device while in the field. Customer support is available through email, phone, or live support online for quick answers to questions. Compliance maintenance ensures the program stays up to date on rules and regulations. Coupa comes with a 30-day free trial, so you can try it before you buy.

PriceFree Trial / DemoFeatures
Custom quote30-day free trial>Web-based deployment
>Email, phone, and live support
>Compliance maintenance
>More features at Coupa Software

Pros & Cons of Coupa Vendor Management Software
Coupa is easy to use and integrates well with other software programs, which makes it easy to streamline a variety of processes, from hiring new vendors to paying and filing existing invoices. Audit tracking is not available, which can be a problem for those who want to rely on the software to maintain records of the vendor process from start to finish.

ProsCons
>Integrates with other programs
>Sourcing management
>Lack of audit tracking

What Customers Are Saying
Customers enjoy the ease of use from start to finish. One customer stated, “It does what you need it to, in terms of filing expenses and submitting. It also does a good job of other tasks like setting up new vendors and getting payments processed.”

Gatekeeper

Gatekeeper
Gatekeeper is a cloud-based vendor management system that also helps companies manage contacts from potential suppliers, employees, and clients. Pricing is variable depending on the number of options needed. These options may include multiple employee portals, balanced scorecards, market IQ, and the risk nodule. The base Essentials package includes data extraction and analysis, eNegotiations to help get the best price, eSign to make it easier to finalize deals. and an easy-to-use workflow engine. Additional packages include Pro and Enterprise. There’s also a free demo so companies can see what the program does before they buy.

Gatekeeper includes audit tracking that ensures the company is prepared by keeping all records in one place in the event of a financial audit. For questions, the program has a self-service portal.

PriceFree Trial / DemoFeatures
Essentials: $775/month
Pro: $1,855/month
Enterprise: $3,325/month
Free trial and demo>Web-based deployment
>Audit tracking
>Self-service portal
>More features at Gatekeeper

Pros & Cons of Gatekeeper Vendor Management Software
Gatekeeper can be quite expensive for smaller companies and start-ups with just a few vendors, so it’s best suited for medium-to-large businesses. The program is available for both Apple and Android devices, which makes it easy to use the software while away from your desk. It also integrates easily with many other financial processes to save both time and money. One drawback — the software doesn’t generate vendor payments.

ProsCons
>Available for iOS and Android mobile devices
>Integrates with other software programs
>Doesn’t generate vendor payments

What Customers Are Saying
Customers like how the company constantly updates the processes with Gatekeeper to keep it relevant and modern. One client noted, “Continual improvement is very impressive. Always looking to improve the system from client feedback. Flexible, and responsive.”

Intelex

Intelex
The supplier management software from Intelex helps companies reduce risks, improve performance, and maintain documents all from a single platform. The program is web-based and available on Apple and Android devices, making it accessible anywhere there is a reliable internet connection. Users have excellent phone and email support when generating documents or accessing information. The program also integrates with other software programs to save time and money.

The software is priced based on the number of users and the types of processes needed. The base price is $20 per month per user for up to five users. With this contract, companies can generate 80 different reports, assess any audit findings, and locate any conformance issues. The different price points makes this software ideal for small to large businesses. A demo is available for companies that want to explore their options before committing to a monthly charge.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based, iPhone, and Android deployment
>Phone and email support
>Integrates with other software
>More features at Intelex

Pros & Cons of Intelex Vendor Management Software
Document control is one of the biggest benefits of Intelex’s supplier management software. You can search for documents and note the contents which saves time over paper files. Custom reports are available, so companies can analyze any issues before they arise. There is a lack of compliance management, which can help solve issues between companies and vendors.

ProsCons
>Audit trails
>Reporting available
>Lack of compliance management

What Customers Are Saying
Clients appreciate the overall performance of the software. One user reviewed the benefits, “Platform flexibility, great applications out of the box, great customer service, and mobile functionality.”

Kissflow

Kissflow
Kissflow is a business process management program that manages vendors and automates a variety of work tasks, including building a project board and handling a case flow or teams collaborating on company goals. Because it’s web-based, you can access documents and projects and collect approvals on purchases remotely, which is ideal for executives who travel and those who work at different sites.

Kissflow provides a variety of reports, including vendor invoices and financial statements. It also includes compliance management, so transactions follow the rules and regulations set by both your company and any external nonemployee workers.

The cost of Kissflow varies, depending on the package. A basic starter package is $390 per month. The next tier is $1,000 per month, and the most comprehensive Enterprise package is $2,000 a month. There’s also a 14-day free trial.

PriceFree Trial / DemoFeatures
Starter: $390/month
Growing: $1,000/month
Enterprise: $2,000/month
14-day free trial>Web-based deployment
>Reporting available
>Compliance management
>More features at Kissflow

Pros & Cons of Kissflow Vendor Management Software
Kissflow is available for Android and Apple devices, so you can work from your cell phone when you’re away from your desk. Customer service provides answers to setup and installation questions and can help walk you through any problems you might have. The program lacks the ability to pull a transaction history, which might be an issue during an audit.

ProsCons
>Available for Apple and Android mobile devices
>Excellent customer service
>Lacks transaction history

What Customers Are Saying
Customers brag about the ease of use and number of processes available. “Kissflow is one of the best software tools I have ever used,” one customer says. “It optimizes time as it is possible to include documents, access projects and collect approvals remotely.”

NetSuite

NetSuite
NetSuite’s purchase management software helps streamline all financial processes from supply chain management to billing and accounts receivable. This saves companies time and manpower so they can focus on sales and bringing in new business. The software also makes it easier for owners to identify risks and make changes before small issues with money become major problems.

The cost of the program varies depending on the optional features added, but it works well for both small businesses and large corporations. There is a demo for those who want to see what the software is all about and what it can do before committing to buy. NetSuite is web-based, so it’s easily accessible from anywhere, including on Apple and Android devices. It integrates well with other software programs to help eliminate the paper trail with vendors and nonemployee workers.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based, iOS, and Android deployment
>Phone and live support
>Integrates with other software
>More features at NetSuite

Pros & Cons of NetSuite Vendor Management Software
NetSuite leaves an audit trail that is easy to follow. The program generates reports that show incoming and outgoing cash flow and which users made changes to specific accounts. The biggest drawback is the lack of off-boarding, which makes it difficult for companies to continue working and servicing customers in the event of a power or internet outage.

ProsCons
>Leaves an audit trail
>Compliance management
>Off-boarding unavailable

What Customers Are Saying
The ability to use NetSuite’s purchase management program for multiple processes is its strongest selling point. One customer commented, “We use NetSuite in several capacities across our entire organization, specifically for our ERP system, our CRM, and also for our eCommerce website which is hosted on an older eCommerce tool called Site Builder. ”

 

Precoro

Precoro
Designed for small and medium-sized businesses, Precoro helps eliminate the manual processes of purchasing, budgets, and public relations. Companies can reduce paperwork to save both time and money while also reducing the amount of storage space needed. The basic plan starts at $29 a month for a single user, which is ideal for sole proprietors or individuals starting a business at home. The more users a company adds, the less expensive the cost is per individual, which means it remains affordable as the business grows. A 14-day free trial allows those interested to explore functionality before making a final decision.

Precoro is web-based, so remote users and traveling sales staff can access reports and data while on the road. The software also integrates with other programs to help streamline the entire accounts payable process into a single location, and it creates an audit trail for easy reporting.

PriceFree Trial / DemoFeatures
Small: $29/month/user
Medium: $24/month/user
Large: $19/month/user
Enterprise: Custom quote
14-day free trial>Web-based deployment
>Integrates with other programs
>Creates an audit trail
>More features at Precoro

Pros & Cons of Precoro Vendor Management Software
Precoro is easy to implement and use even for employees who have little to no technical experience. The reporting feature makes it easy to identify risks and locate any issues before they happen. The company offers excellent customer service for help with customization or any problems that arise. One drawback is the inability to manage sources, including the inability to delete data.

ProsCons
>Reporting available
>Excellent customer service
>Inability to manage sources

What Customers Are Saying
The reduction in company paperwork is a commonly talked about feature. One customer said, “Paper-printing has been reduced by a huge margin. Approvals are done not only promptly but accurately. We are a more efficient supply chain team since we logged onto Precoro.”

Procurify

Procurify
Procurify is a web-based vendor management program that helps companies track, control, and manage spending. All information is centrally located, which makes it easy for employees to track and manage their own purchases, requisitions, and expenses. The app is available for Apple and Android devices, so users can locate information on orders while working away from their computers, and it integrates well with a variety of other software programs to help automate the supply chain process. Customer service is available through email, by phone, or via live support online for those who have any issues, but the software is easy to use regardless of a users’ skill level.

The cost of Procurify varies depending on the number of users and options chosen. The company does offer a demo, so companies can experience all the software has to offer before making a purchase.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based, iOS and Android deployment
>Email, phone, and live support
>Integration with other programs
>More features at Procurify

Pros & Cons of Procurify Vendor Management Software
One of the biggest benefits of Procurify is the information it stores, which enables companies to be prepared for an audit at any time. The program leaves an easy-to-find audit trail with quick access to purchase and payment information.

ProsCons
>Leaves an audit trail
>Reporting available
>No free trial

What Customers Are Saying
Customers love how the program streamlines multiple financial processes to save time. One customer stated, “This tool is excellent for any company that makes different orders and has an inventory control in constant change. The characteristics of purify are designed to obtain the best performance in this type of work, streamlining the whole system.”

SAP Ariba

SAP-Ariba
SAP Ariba is a cloud-based solution that connects suppliers and business on a single platform. The software acts like a supply chain that allows companies to take care of financials globally. Connect quickly with millions of suppliers who meet your business needs and manage all processes quickly and easily. With SAP Ariba, you can create customized reports, request and accept payments, create contracts, as well as monitor quotes. It also allows you to compare multiple vendors at once before signing a contract to ensure you get the best prices on merchandise.

The program is web-based and works with all Android devices. It also integrates with other software programs. The cost of the software varies depending on the number of services needed. A demo is available so users can see how the program works and how it would benefit their organization.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based, Android deployment
>Integrates with other software
>Viewable work in progress reports
>More features at SAP Ariba

Pros & Cons of SAP Ariba Vendor Management Software
The biggest advantage of SAP Ariba is the online availability of the program. This is ideal for companies with multiple locations or for business owners who like to travel. The program doesn’t offer support for Apple devices, which might be an issue for some. Advanced features can be difficult to navigate, even for someone with technical experience. The company does offer excellent customer service to help answer any questions.

ProsCons
>Available online
>Works with Android mobile devices
>No free trial

What Customers Are Saying
Clients enjoy the easy accessibility of SAP Ariba. One customer commented, “With Ariba Procurement, users now have a simple, smart, and open way to connect all systems and stakeholders through the powerful global Ariba Network. Being part of this network enables users to reduce costs, mitigate risks, and get products to the market.”

SAP Fieldglass

SAP-FieldGlass
SAP Fieldglass is a web-based vendor management system that makes it easy to find vendors, talk to them about products and services, sign contracts, manage orders and pay for services all in a single location. The software offers multiple networks, so companies can manage different types of vendors in a single location, including gig workers, independent contractors, consultants, and freelancers. The program lets you add detailed job descriptions for each vendor which can be useful in the event of an audit.

The cost of SAP Fieldglass depends on the number of users and additional options chosen. The company provides a demo that highlights some of the most popular features. Live support is available for any issues that arise. The software also integrates with several other programs so you can automate emails, reports, purchasing, invoicing, and risk management while saving both time and money.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based deployment
>Live support available
>Integrates with other software
>More features at SAP Fieldglass

Pros & Cons of SAP Fieldglass Vendor Management Software
SAP Fieldglass creates audit trails which makes it easy to follow transactions back to their origin. This increases transparency for board members and results in record integrity and accuracy. Users can create a variety of business reports from this information for easy reporting. Unfortunately off-boarding is unavailable, which makes it difficult to manage information during a power loss or when traveling without internet access.

ProsCons
>Audit trails
>Reporting available
>Off-boarding unavailable

What Customers Are Saying
Customers agree SAP Fieldglass is ideal for companies that outsource. One customer commented, “Fieldglass is perfect for situations in which payments are contracted out, or paid on a project-completion basis. ”

Shortlist

Shortlist
Shortlist is a software program that helps companies find vendors and manage their entire external workforce in a single platform. The software is designed for the gig economy. The platform makes it easy to rate workers and pay them. It also provides contact management, expense tracking, and employee onboarding processes. Because the software is web-based, traveling executives and remote workers can access Shortlist to locate freelancers for quick paying jobs.

Customer service is available by email, phone, or through live internet support, which makes it easy to get answers to questions any time of the day. The program integrates with other software processes to help reduce the paper trail. While the cost of Shortlist depends on the number of options added, business owners can take advantage of a free trial to try the program out before committing to a monthly fee.

PriceFree Trial / DemoFeatures
Custom quoteFree trial>Web-based deployment
>Email, phone, and live support
>Integrates with other software programs
>More features at Shortlist

Pros & Cons of Shortlist Vendor Management Software
Shortlist offers excellent customer service. They can walk new users through all of the available reports and features. They also offer information on customization. While the program does offer basic printouts, limited reporting is a problem. Advanced details on risk management are unavailable.

ProsCons
>Excellent customer service
>Streamlines multiple processes
>Limited reporting

What Customers Are Saying
Businesses who use Shortlist appreciate the ability to connect with their freelancers. One company owner commented, “Using Shortlist will allow us to better manage and engage with our partners but it will also impact our internal teams giving them the visibility needed and helping them to deliver for our customers.”

Tradeshift

Tradeshift
Tradeshift is a web-based invoicing and procurement platform that connects businesses with their suppliers. The software is completely customizable, which makes it easy to adjust the documents and options to your needs. For questions involving programming and operations, customer service is available on the phone or through email. The program also integrates with other software, which can reduce the number of processes.

Pricing on Tradeshift is available through a company quote. The cost of using the software depends on the size of the company, the number of users, and how many additions are needed. Prospective buyers can watch how the program works through the free demo.

Tradeshift lets vendors send invoices and allows companies to view statements and pay directly from the application. This helps eliminate any issues that arise through contract disagreements or lost payments. The program can send notifications to the user for any activity on the account.

PriceFree Trial / DemoFeatures
Custom quoteDemo available>Web-based deployment
>Phone and email support
>Integrates with other software
>More features at Tradeshift

Pros & Cons of Tradeshift Vendor Management Software
One of the biggest complaints about Tradeshift is the slow load times. The document process can also be cumbersome and difficult to navigate. There is also a lack of audit trails. However, the app has a wide variety of custom options and choices, and the sourcing management makes it easy to track invoices through all levels of the cycle. Offboarding is also available.

ProsCons
>Sourcing management
>Off-boarding available
>Custom options available
>Audit trails unavailable
>No free trial

What Customers Are Saying
Customers do have a lot of good things to say about Tradeshift. One customer said, “Compared to many related goods, this app has fantastic functionality, with multiple customizations with choices … I can track my invoices during all levels of the cycle and include comprehensive inventory status details throughout illustration-up. The tech team is very kind and supportive.”

Tradogram

Tradogram
Tradeogram is a web-based procurement software program that lets you track the entire purchase process to help you gain control over company spending. The software is available for both Apple and Android mobile devices, so it’s easy to access company supply chain information from anywhere. Support is available in person, through webinars, live online, or through emails and online documents. The product includes a self-service portal where users can locate answers to any issues that arise without external help. Tradeogram pricing starts at $15 a month per user, which makes it affordable for small businesses. There’s also a free trial available for those who want to explore what the software has to offer. Options include catalog management, fixed asset management, contract and inventory management, shipping and receiving, and supplier management.

PriceFree Trial / DemoFeatures
Basic: Free
Premium: $15
Enterprise: Custom quote
Free account and demo available>Web-based, Android and iPhone deployment
>Email, phone, and live support
>Self-service portal
>More features at Tradogram

Pros & Cons of Tradogram Vendor Management Software
Tradeogram provides a trackable audit trail for all processes, which keeps businesses prepared for financial audits. A variety of reports are available to help companies assess risks and to identify any issues in supply chain management. Off-boarding is unavailable, which makes it difficult to look for vendor information in the field when internet access might be restricted.

ProsCons
>Trackable audit trail
>Reporting available
>Off-boarding unavailable

What Customers Are Saying
Customers appreciate the ease of use of Tradogram. One stated that it’s, “Easy to use and input your own information. Works well with other companies, they receive the purchase orders correctly and easily.”

Vendor Management Software

onspring
OnSpring Vendor Management Software is a web-based information technology service management (ITSM) software that helps companies plan, deliver, operate and control any information technology services that are provided to customers. The base cost of the software is $175 per user per month, which can be expensive for small businesses to operate. The cost is payable by the year and a free option is not available. A demo allows business owners to see the program in operation before deciding to buy.

The software has excellent customer service with support available by email, phone, or live online. Business owners may also schedule in-person training or classes through webinars to ensure employees know how to navigate the system. A variety of reporting features allow users to respond to IT tickets, assign and prioritize tasks, and optimize a customer’s experience.

PriceFree Trial / DemoFeatures
$175/user/month
Custom for Enterprise
Demo available>Web-based deployment
>Email, phone, and live support
>Reporting available
>More features at Vendor Management

Pros & Cons of Vendor Management Software
One of the biggest advantages with Vendor Management Software from OnSpring is off-boarding, which makes it possible to download and check information even when the internet is unavailable. The software also provides audit tracking, which makes audit preparation simple. OnSpring doesn’t integrate with other software programs, so services not covered will have to be automated through another process.

ProsCons
>Off-boarding available
>Audit trail tracking
>Lack of integration with other software

What Customers Are Saying
Customers comment on how intuitive the software is. One individual noted, “OnSpring is honestly THE easiest software to use. Right from the start the layout is appealing and not overwhelming at all.”

Zycus iSupplier

Zycus
Zycus iSupplier makes it easy to carry out your business processes with vendors, suppliers, and buyers. The software is designed for medium to large businesses and it helps automate supplier performance and information management, including managing and tracking orders, maintaining relationships, tracking payments and growing your business.

Pricing for Zycus is available upon request and is dependent on the number of users and options needed. A free trial isn’t provided, so customers should explore user reviews and read up on the available processes before deciding to purchase. Those interested can see the software in action with an available demo. For support, customers may contact the company through email or by phone. The software integrates with other processes, so it’s possible to automate the entire vendor relationship to save both time and money.

PriceFree Trial / DemoFeatures
Not providedDemo available>Web-based deployment
>Email and phone support
>Integrates with other software
>More features at Zycus iSupplier

Pros & Cons of Zycus iSupplier Vendor Management Software
Zycus allows users to create multiple reports for easy analysis and use during board meetings. The software leaves an audit trail, so you can track each process back to the individual who entered it into the system. The program doesn’t make vendor payments, so a third party software will need to be used for accounts payable.

ProsCons
>Reporting available
>Leaves an audit trail
>No vendor payments

What Customers Are Saying
Customers appreciate the ability to customize the software to their needs. One said, “The product itself has multiple levels of categories, which makes it a good product and quite efficient. They have a suggestion section for the new categories to be added. The reporting functions seem to be very adapted to your own needs. It is easily customizable according to need. “

What Is Vendor Management Software?

Vendor Management Software (VMS) is a program that allows businesses to manage temporary or contingent workers and outside contract labor. These workers include freelance writers, consultants, and independent contractors.

An example of a vendor is a temporary agency. They may also be called suppliers because they supply labor to the organization. Vendors may be permanent, in which case they are called vendor on-premises. They only provide services to the company where they are located.

Keeping all the information on contingent workers in one place makes it easier to be prepared during tax time, call a worker back at a later date, or create reports regarding worker performance. The software can streamline every step of the onboarding process, including hiring, managing and paying workers or vendors.

A VMS program can help control costs, ensure excellence, and reduce risks involved with continent workers. Most of these software programs are customizable, so you can create reports and documents that fit your particular business.

Benefits of Vendor Management Software

Vendor management software keeps everything related to vendors in one place, giving managers and business owners instant access to important data. Consider the following benefits of vendor management software:

  • Increased visibility: Hiring and procuring temporary staff members or vendors can be a complex process. Keeping track of all the steps using paper files can make it difficult to see the overall picture. Vendor management software makes it easy to view the process with a single glance and keep track of spending.
  • Company growth: Many companies go through seasons where they require more help. A VMS makes it possible to grow your company’s employee base during the periods before these rushes begin. This allows you to keep up with seasonal demands.
  • Automating processes: Hiring and training involves a lot of man hours regardless of whether you use temporary employees or vendors. A vendor management system allows you to automate the entire process, so you get the data you need without increasing the paper trail.
  • Control over finances: Decreased visibility with temporary staff can lead to overpayments or lack of an audit trail. Using a vendor management system enhances oversight of spending to help reduce waste. Generating reports lets you see how your payroll compares to the market rate, so you can adjust the cost accordingly.

Must-Have Features of Vendor Management Software

Navigating your business through vendor relationships and policies can put your company at risk. A vendor management software system helps automate these processes to improve relationships and simplify vendor agreement set up. There are a few things every VMS should have.

  • Compliance management:Managing the vendor lifecycle is one of the most important features of a VMS. The management portion of the software should categorize each vendor according to risk. Temporary workers can result in inherent risks. These risks should be identified through regulation requirements.
  • Integration with other software:A VMS should integrate with other human resource processes to save time and money. This can include payroll software to configure compensation or time tracking for monitoring time spent on the job.
  • Audit trails:Vendor management software should make it easy for business owners, board members, or auditors to quickly access up-to-date information on vendors.
  • Payments: Tracking time spent on the job should make it easy to generate pay for vendors. A quality VMS should generate invoices that are payable through an integrated payroll system. This automated feature helps eliminate mistakes made through user error.

The Cost of Vendor Management Software

The cost of a VMS can vary depending on the software provider. Among the providers we reviewed, listed prices ranged from free all the way up to $3,000 plus per month. Most software providers ask that you contact them for a price customized strictly for your business and its operations. For the most part, these programs are web-based and include cloud storage. Cloud storage costs are based on the amount of storage, the size of each file download, and the number of transactions. For small businesses, the software cost may be minimal for a single user. Companies that require multiple user access can expect to pay more.

Rates are typically charged by the month or by the year. Some programs offer trials so you can get a good idea of how the program will benefit your company before you commit long-term. Starter packages keep basic records of vendors, including when they worked and what they did. Companies that hire multiple types of vendors can expect to pay hundreds or thousands of dollars per month.

Pricing is also determined by the types of training and support that are available. Higher-end systems may provide in-person support or frequent webinar training, while basic programs may only offer phone support or documentation.