According to Robin Swami, the growing business culture demands for a solid vendor management system. It will help manage the suppliers, ensure proper flow of cash and inventory and healthy management. It is therefore important to choose a system that fits your business requirements. Here, we will take you through the tips that will help you choose a good system.
1. Centralized display of information is key for business decision makers. When you have a dashboard that quickly showcases important information of the vendors, it saves decision makers a lot of time. For instance, if you know what is the amount you are paying a particular vendor, you can know if the amount works or not. You can easily evaluate other vendors using this data. This information table also consists of the public ratings and self registration details for the particular vendor.
2. When you are evaluating the vendor management system, you should consider two aspects – the performance of the system and the risks involved. The system should be able to decipher the process, conduct a thorough analysis and identify the probabilities of risks involved, according to Rohit Agrawal. The system should identify both inherent and residual risks so that it can be mitigated. You should also prepare a scorecard for your vendors. This will help you identify the most capable and most underperforming vendor within your system. You will be able to take the exact action. You will get a complete picture of the vendor’s past and present performance. You will see the values of the KPIs and how close it is to expectations. Based on the feedback received, you will know what best practices to involve to improve the efficiency of the management system
3. Integration is key to a successful vendor management system. If you want to invest in a good system, make sure it has good integration capabilities - says Robin Swami. The vendor management system should get a good deal of its data from the processes to manage its effectiveness. For instance, if you want to place an order, you should know the type of instrument, the total pieces and the need for it. his will be provided from the processes that are connected with the vendor system. As a result, it is important for you to integrate systems and fetch data
4. Reporting is key to identifying what is going wrong at the shop floor level and knowing what actions to take to improve the condition. You should consider opting for automated report generation when choosing a vendor management system. This will ensure proper monitoring, real-time fetching of important details and seamless process management.
When choosing the vendor management system for your requirements, you should also look for a solution that offers expert advise and is rock solid on experience. You may want something that a lot of people are using for custom solutions.
Choosing the right vendor management partner, according to Rohit Agrawal, requires a complete understanding of what you need and the available partners. It also depends on your budget, feature requirement and accessibility.