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Companies may put off the expansion of their vendor bases for two reasons: the process of new supplier enrollment is time-consuming, and further managing multiple relationships and contracts is complicated. Vendor management software is designed to cope with both problems at once.
VMS has an easy and clear self-registration process for vendors that saves your procurement staff from unreasonable efforts to collect all the required information about new suppliers. With VMS, you can pre-qualify vendors against your critical requirements like an ability of a vendor to produce goods under your brand or to ship products to certain countries.
All in all, using a vendor management system, you can obtain all the necessary vendor information (such as bank details, regulatory data, capacity details, etc.) in a fast and error-free way for approval. The sooner you onboard new vendors, the faster you start getting value from your cooperation.
A vendor management system brings increased visibility into all transactions with your vendors. You can, for example, detect hidden costs or note discrepancies in payment details reported by a vendor (e.g., exaggerated pay rates). Besides, when integrated with accounting software, a VMS system can enable automated invoicing, allowing your business to cut costs associated with manual invoice processing and get rid of mistakes caused by manual data entry.
An effective vendor management system helps you reduce operational costs, assess vendor risks more accurately, and facilitate supplier search and onboarding. If you feel hesitant to go into VMS implementation investment right now and need to get a better understanding of the business value it can bring, you can start with a free demo from different VMS providers and get real experience with the tool. And if you are looking for professional help in implementing a vendor management system, don’t hesitate to contact ScienceSoft’s team.
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