5 Benefits Of Digitizing Your Vendor Management

When it comes to traditional vendor management, enterprises face a host of challenges, from lack of automation and missing supplier data to vendor payment risks and compliance issues. Your business usually deals with several vendors at the same time, with each vendor having their own communication and documentation methods. It is an arduous process to manually coordinate such a huge vendor ecosystem and ensure efficient supply chain management. Apart from having to manage each vendor’s unique requirements, a traditional system makes it harder to search for vendor information as there is no centralized data storage. The absence of a unified platform also reduces visibility for resource allocation, vendor quality assessment, and compliance management in the supply chain. If a vendor does not adhere to regulatory principles and industry standards, then your business is exposed to payment risks.

A digital vendor management platform can easily address these challenges to improve your vendor relationships. 

The conventional process of vendor management is bogged down with manual documentation, changing regulations, management of multiple payment schedules, and following up on contracts for multiple vendors. Investing in an automated vendor management platform will make the complete vendor management process seamless and hassle-free. Here are 5 advantages of a digital vendor management system.

1. Digital Vendor Management Simplifies Vendor Onboarding

The manual process of vendor onboarding is time-consuming and inefficient. The traditional system lacks a centralized platform to store and access vendor information. With a digitized vendor management system, enterprises can easily acquire and store vendor data like bank account details, order capacity, and regulatory data. This cuts down on onboarding time leading to improved productivity and reduced costs. Automated vendor management has features like form automation that make vendor onboarding simple and quick. So you can have a database of a large number of vendors in one place and select the right vendors quickly, depending on your needs, through the digital vendor management system.

2. Digital Vendor Management Reduces Supplier Risks

Automated vendor management includes a centralized database of supplier data giving you a complete bird's eye view of all your vendors. The Supply chain vendor management system increases the visibility and accessibility of vendor and supply chain information to every stakeholder and department in the process. You can seamlessly manage all contracts, mitigate conflicts, and improve vendor compliance.

Since conventional vendor management does not provide a comprehensive overview, vendor risks are overlooked, leading to inefficient operations and unexpected expenses. The increased visibility offered through digital vendor management gives your enterprise the ability to quickly address vendor compliance issues. The automated vendor management platform allows you to track the past records of your vendors, update the information on the database, and verify vendor certifications, finances, and other qualifications.

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3. Digital Vendor Management Improves Contract Management

Maintaining a huge number of contracts for different vendors can get tedious and confusing. By digitizing your vendor management, all your contracts will be in one unified place. Through this process, you can track all your open and closed contracts along with understanding the status of the open contracts for each vendor. The consolidation of contract data will improve project visibility and make tracking vendor compliance easier.

This centralized system would be accessible to vendors as well, improving overall transparency and thus strengthening the organization and vendor relationships.

4. Digital Vendor Management Automates Documentation

The probability of errors in physical documentation systems is very high. There's also an increased possibility of misplacing physical documents and records. With an automated vendor management platform, you can convert your physical records into digital entries that can be securely stored in the centralized system. Not only does automated vendor management reduce the possibility of misplacing records, but it also comes with a host of benefits like ease of updating documents, central access to all involved parties, seamless search functionality inside the documents, and easier correction of mistakes.

Another important advantage is the auto-delete feature that can improve vendor compliance by automatically deleting or archiving contracts after their contract period expires. Moreover, you can integrate digital payments into your supply chain vendor management, enabling your enterprise to control all payment and billing details.

5. Digital Vendor Management Enhances Vendor Relationships

A streamlined, digitized vendor management system will allow your business to effectively engage with your suppliers and develop fruitful long-term relationships. Automated vendor management platforms will allow you to build business relationships with vendors despite geographical locations and diverse economies. Your business can improve vendor accountability, accelerate growth opportunities, and develop trusted relationships with your vendors through a digitized, open vendor management platform. 

Vendor relationships directly impact your business growth and a digital vendor management platform allows you to effortlessly supervise your vendor ecosystem. The future lies with the enterprises that adopt a digitally enabled and data-driven ecosystem of vendors. Your business can seamlessly make the transition to a digital vendor management system with an out-of-the-box platform like Bizongo. Get in touch with us to get started.

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