7 key features to look for in vendor management system
Vendor management software allows you to place all your vendor-related information in a single database. Not only does that centralize all the information, but it also helps digitally scan and point out errors that a manual vendor management system may not be able to do.
What are vendor management systems?
A vendor management system is an empowering tool for businesses that are in the process of scaling, or on a speedy path to growth.
It includes the steps that help control costs, places appropriate orders, and determine which vendors are a good long-term investment. In the digital age, this task is managed by vendor management software.
Why do businesses need vendor management system?
It is crucial to have a smooth running vendor management system in order to create a successful vendor relationship. A good vendor management software is not just an organizational tool - although that is a highlight of vendor management software features. Having a vendor management software means that you have a wide range of vendors to choose from, allowing you to pick the best one for your needs. Having access to well-organized vendor data can also help prevent vendors from overcharging.
Optimized performance management
Organization leads to efficiency. An updated vendor management software can remove redundancy, catch errors that a human eye cannot, and automate processes that get confusing with manual labor. Not only does this allow employees to focus on catching errors & seeing the big picture but it also enables them to save time to focus on productivity and ideation.
Consolidated contracts and invoices
Vendor management automation means that all your purchase orders and vendor contracts are on a singular database. Having it all collated makes it much easier to manage invoices, invoice corrections, and transaction approvals. Verification becomes swifter when the purchase orders are present for immediate comparisons. When the time comes to renew contracts, it’s great to have your orders & invoices listed together so that your ROI is clear.
Improved vendor relationship
Vendor relationships can be fleeting or long-term, depending on how both parties manage their side of the bargain. With all your supplier information in one spot, it is easier for companies to track their progress and decide if a vendor is worth maintaining a contract with. It also creates an elaborate network, over time, so that you have a sizeable range of vendors to choose from for your future requirements. Keeping information well maintained also makes timely vendor payments streamlined, resulting in an improved relationship with your current vendor list.
Streamline your vendor payments with Volopay
Key features of vendor management software
Vendor onboarding
Adding vendors to a vendor management software is a one-time step. With software having address book capabilities, you need only link invoices and purchase orders to an existing vendor. All payment information and previous transactions are stored under the vendor entity.
Tracing payments to a single vendor is no longer grueling when all the data (including any future automated payments) is present. In addition, this creates a larger vendor network for cost-benefit analysis.
Data analysis
Vendor management software features include exporting capabilities. This means that all transactions linked to an invoice or an individual vendor can be examined by downloading a ledger. Ad-hoc reporting and analysis are also made possible by one-click information downloads.
It’s a neat trick that allows you to backup data offline or on company servers. Flagging any errors or picking up on unnecessary purchases also becomes easier when the raw data is available to plug into an analysis software of your choice. Certain predictions and spending patterns can also be seen on the vendor management dashboard.
Employee engagement
The goal of any software onboarding is to improve employee engagement and productivity. It has also become a need of the hour as more businesses digitize in a post-COVID world. Time and cost reduction tactics feed into designing vendor management software features.
Employee engagement grows exponentially when their focus is shifted from redundant data entry towards credible data analysis, product ideation, vendor outreach, and selection. It also doesn’t hurt that transparent transaction records create an employee culture of trust and reliability.
Strategy and aid
Vendor management automation comes with a degree of predictive analytics. Volopay’s Bill Pay dashboard is ideal for assigning budgets for specific departments or vendors. These pictographic patterns let the finance department and team managers allocate vendor budgets appropriately.
The bird’s eye view of company-wide vendor expenses aid in the strategic implementation of spend policies and approval tiers. Multiple tiers of approvers prevent compulsive spending or bad vendor decisions.
Software integrations
Any software becomes more conducive the moment it allows integrations. The same goes for a vendor management system. Volopay’s vendor management software can be integrated with accounting software like Xero, Quickbooks, and Netsuite.
The integration allows for easy data transfer for accounting purposes. Auditing vendor payments becomes less of a hassle, especially since integration takes away the need for human intervention or manual data entry. Accountants can also be onboarded onto Volopay’s interface so they can access and download accounting-relevant data independently.
Risk assessment and compliance
Readily available vendor data allows for error correction much quicker than manual scanning. Visible patterns with previous vendors let data analytic teams highlight patterns behind purchase orders and cost-heavy spending decisions. Vendor relations with low or negative ROI can be easily flagged for re-assessment.
Fraudulent and repeat transactions are near impossible with vendor management automation. Moreover, the streamlined process of auditing then makes compliance work equally manageable.
Payment automation
Recurring payments are easy to miss, and a hassle to correct. They’re a monthly headache that comes along with many vendors, especially those providing SaaS With a digitized vendor management system, you can set up automatic recurring payments for vendors that require them.
It takes the burden away from repetitive manual labor, while also ensuring timely payments to all vendors. Payments can also be linked to budgets and approval policies to control expenditure.
How can Volopay make vendor management easy for you?
Volopay’s features make vendor payouts easy as pie. The platform supports a variety of B2B transactions, in over 130 currencies. Crossborder payments to vendors become easier through Volopay, whether you choose the swift or non-swift route. The comprehensive supplier network also lets you engage with vendors who offer handsome discounts for early payments and invoice closures.
Opting for vendor payment automation with Volopay also ensures that your invoices are streamlined. This creates a wholesome environment for employees to become more productive and focus on accounting analysis and budgets. Vendors remain happy as their payments come quickly and precisely.
The added benefit of automation is that all payments are secure, which builds trust between vendor and buyer. Compliance for both entities is no longer tedious, with all information on invoices and receipts being digitally compiled into a single, transparent database.
Volopay’s card systems let you create temporary cards and specific budgets for vendors providing SaaS. In this way, vendor management automation also creates a security net to prevent fraudulent payments. Since none of the cards are linked to company or vendor bank accounts, these payments are entirely traceable while being a safety issue. Vendor payout with Volopay is the ideal solution for your vendor management needs.
Trusted by finance teams at startups to enterprises.
Bring Volopay to your business
Get started free