Vendor Portal Software – Here and Now
Vendor portal software has become hot button for debate in Procurement and in the greater Procure-to-Pay space. There are many different opinions about what a vendor portal is or is not. Most agree that baseline Vendor Portal Software is at minimum a platform that provides a single web interface for suppliers to log-in, update information, upload documents and view their orders and balances. It can also display information like electronic invoices, delivery notifications, acknowledgments, etc.
One necessary element of effective vendor portal software is communication! Better out-reach and communication drives more connectivity with vendors – and connectivity is key! Communications should be sent via SaaS-based methodologies to allow for faster interaction between a company and its vendors. Once vendors arrive at their portal – any best-in-class systems will offer self-service functionality to provide a seamless experience for the vendor. A vendor portal allows companies and vendors to communicate in a highly secured environment and to enjoy controlled access for all parties.
The Rise of Vendor Portal Software
In the mid 90’s, portals were leveraged for news, email, stock, and searching. During the late 90’s, additional software vendors created pre-packaged enterprise portals, but the systems required customization. Projects frequently took years to complete and ran over budget. By the early 2000’s; bigger organizations stepped in to develop their portals for their own usage, which required intensive coding and vendor management protocols. The utility of this successful vendor portal software got the attention of analysts, experts, end-users and service providers. By the year of 2009, terms like “vendor portal” “portal-less” and “lean-portal” were getting a lot of attention by many analysts. The new vision of Vendor Portal Software promised vendors a more personalized experience and offered highly simplified and flexible configuration to clients. Since then, many changes were made in the Vendor Portal Software, to make them more competent and reliable. Today, many big and small companies rely on their vendor software to make their business more effective and productive throughout the world.
Cost & Causes of Poor Vendor Management
The cost of a poor vendor management can reveal itself through profit loss; poor governance and controls, opportunity costs and revenue loss. Companies can suffer from a limited ability to centralize and enforce governance, and risk increases significantly without proper oversight put into place. In the absence of vendor portal software, the companies can lose very tangible dollars. Large enterprises lose millions of dollars in duplicate payments per year due to inaccurate data. The ACFE reports that a staggering 7% of the annual revenues are lost annually to fraud. Vendor on-boarding can become very manual and although some companies dispute the totals, the process can cost millions of dollars each year.
The competition and growing complexity in every market are at all time high, and the implementation of simple and reliable vendor portal software is very crucial. Companies have become exceeding complex matrix organizations that observe multiple divisions, languages, regions of the world, commodities, and more. Managing all of these moving pieces is a must, and Vendor Portal Software also assists organizations in achieving this milestone effortlessly.
When a vendor population grows into the thousands and tens of thousands, you need an effective system that can manage the sheer volume of data you are required to sift through. A proper vendor portal software solution can help to remove redundant and inactive vendors while maintaining communication with your active suppliers and mapping their relationships.
In addition, every company big or small needs to find a solution for fraud protection and risk mitigation to protect their critical data. The solution must be cost efficient and highly functional at the same time.
With integrated vendor portal software, a company can benefit greatly improve their data validations, transaction processing, receipt errors, physical document collection, operational speed, and other areas that are crucial for a success of an organization.