The Best Vendor Management Systems for 2022

Business Management
Josh Plotnek May 17, 2022 16 min read

Onboarding vendors, handling their contracts and collaborating with them can be tricky with just paper. So we’ve picked the best vendor management systems to make these processes paperless and painless. 

worker using vendor management systems

Quick Guide

    Most businesses work with vendors. As a result, most businesses have to deal with invoices, orders, contracts, payments and deliveries. You can waste a lot of time and money handling all of this on paper.

    These days though, many businesses use vendor management systems to make these processes more efficient and accurate. But which solution is going to be the best fit for your business? After all, there are so many to choose from. 

    That’s where we come in. We’ve narrowed down all the options out there to 11 of the very best vendor management systems, based on pricing, features, integrations, onboarding and how easy they are to use.

    Our Top Picks

    1. Connecteam – Best all-in-one vendor management system

    2. SAP Fieldglass – Best for banking and financial services

    3. Genuity – Best for IT companies

    What to Look For in a Vendor Management System

    There are a few key functionalities to consider when choosing the right vendor management system for your business:

    • Data management: An ideal VMS allows users to create and oversee both vendor data and to manage documents, such as financial statements, contracts and insurance certificates.
    • Risk and performance management: Assessing new vendors should be automated and measuring risk levels should be given automated scores. Your VMS should be able to track vendors based on risk and performance.
    • Vendor communication & collaboration: Vendors should be able to securely provide documentation and information to your business. With the right VMS portal, you and your vendors can communicate and collaborate before, during and after contract periods.
    • Reporting: An ideal VMS should allow users to report on vendor-based processes, making it easy to relay valuable information to management.
    • Compliance management: Many industries require vendor management software that makes it easy to comply to strict rules and regulations.
    • Recruiting and onboarding: You probably need a VMS that allows you to effectively hire and onboard appropriate vendors to align them with your business processes.
    • Integrations: Your chosen vendor management platform should be able to integrate with various business software solutions, such as payroll software and 3rd party risk intelligence solutions.

    The 11 Best Vendor Management Systems of 2022

    Best all-in-one solution with vendor management system capabilities

    Platforms: Web, iOS, Android

    Connecteam is an award-winning all-in-one solution primarily designed for deskless workers and remote teams. Though it also has a wide variety of features that are perfect for managing and engaging vendors and contingent workers. 

    With a comprehensive managers dashboard, the ability to onboard, communicate with and pay vendors according to your business’s needs, Connecteam makes vendor management a simple, secure and accurate process.

    It’s worth noting that while a lot of the following features that Connecteam provide aren’t explicitly designed to manage vendors, they can be treated and customized in a way that achieves the same goals of many of the other vendor management solutions on this list.

    Here are some of the reasons why you should strongly consider using Connecteam for its vendor management capabilities:

    • Maintain compliance and easily manage, organize and keep track of vendor contracts, certificates and licenses with the documents feature, directly from the app.
    • Build relevant courses and training manuals to align vendors with the workflows your organization use to run its business.
    • Reach specific vendors in seconds using the app’s directory and communicate about purchase orders, invoices, and delivery dates via the 1:1 or team chat.
    • Pay vendors with minimal hassle, ensuring timesheets are completely accurate and using Connecteam’s integration with Quickbooks Online.

    Other valuable employee management features that businesses can benefit from using Connecteam include tracking work hours using the employee time clock app and assigning shifts via the employee scheduling app

    Most importantly, you and your employees can use Connecteam’s features on mobile, making work processes paperless and painless.

    Key Features

    Document management

    Training and onboarding

    Internal communication features

    Reporting with forms & checklists

    Compliance management

    Integration with Quickbooks Online

    Pros & Cons

    Extremely easy to use

    All-in-one software with wide range of features

    Excellent customer service

    Affordable solution 

    Isn’t exclusively a vendor management system

    Price: 

    Starts at just $39/month for up to 50 users

    Free 14-day trial

    Free plan available

    The #1 Vendor Management System for Your Business

    Best for: Banking and financial services

    Platforms: Web-based only (iOS and Android for separate solutions)

    sap fieldglass vendor management system home page

    SAP Fieldglass is a well-known vendor management system that allows users to manage every part of their vendor network. This includes the ability to track each vendor’s performance and handle contracts and compliance.

    With SAP Fieldglass, it’s easy to manage every step of a vendor’s journey, from hiring them via the software’s Digital Partner Network, giving users the ability to filter service providers based on specific skills. Users can onboard and offboard vendors automatically. Paying directly from the software is also possible. SAP Fieldglass comes with a wide range of 3rd party integrations, with the ability to sync with cloud-based solutions such as Salesforce, Oracle, Kronos, and Microsoft Dynamics, to name a few.

    Although it’s pretty easy to use, we believe that users should seek assistance and training from its customer support, in order to use to software to its full potential. SAP Fieldglass provides separate mobile apps for different purposes – like one specifically for managers, and another two for vendors to receive tasks and submit timesheets, respectively.

    Unlike SAP Fieldglass, Connecteam’s all-in-one capabilities mean that it boasts a much wider range of features, while still lending itself to vendor management – such as onboarding, contract management, integrations with payroll software and internal communication features – all from one device.

    It’s also worth noting though that SAP Fieldglass doesn’t come cheap, and pricing is only available upon request. 

    Key Features

    Contract management

    Compliance/performance tracking

    Payment options

    Onboarding and offboarding

    Pros & Cons

    Good customer service and support

    Strong list of integrations

    Some companies may be overwhelmed by number of features

    Expensive solution

    Price: 

    Contact a SAP Fieldglass sales representative for pricing information.

    Best for: IT Companies

    Platforms: Web-based only

    genuity vendor management system home page

    One of the most affordable vendor management systems on this list is undoubtedly Genuity. This platform includes many IT-based features, like being able to manage telecom expenses, as well as automating help desk requests. 

    It also provides most of the capabilities one would come to expect with vendor management – such as contract management, spend tracking, and asset visibility. One big plus is the many platforms that Genuity integrates with, such as Quickbooks, AWS, Salesforce and G Suite, amongst others.

    Genuity’s low, transparent pricing is mainly due to its limited range of features, compared to other solutions on this list. For example, while you’ll spend a bit more using Connecteam, you’ll get a much wider range of business management features via its free plan, with the ability for you and your vendors to handle daily business directly from mobile devices.

    Key Features

    Contract management

    Track spending

    IT assets

    Telecom expense management

    Pros & Cons

    Unlimited users

    Easy-to-use and attractive interface

    Not the best option for deskless teams

    Doesn’t have a wide range of features

    Price: 

    Costs $29.99 for unlimited users

    30-day Free Trial available

    Best for: Businesses in highly-regulated industries

    Platforms: Web, Windows, Mac

    ivalua vendor management system home page

    Ivalua is an ideal vendor management system for medium-to-large businesses looking to manage budgets, contracts, and invoices. With strategic sourcing, procure-to-pay and direct spend management, Ivalua includes many of the classic features you’d come to expect from vendor management software.

    Ivalua key strengths lie in its customizability, with many ways to tailor its features to meet specific business needs. It is also very easy to use and is pleasing on the eye. Truth be told though, Ivalua can run slowly at times and when there are errors or bugs, it can be difficult to get in touch with customer support.

    And as previously mentioned with other solutions, Ivalua doesn’t include it’s pricing online. Other apps on this list like Connecteam don’t have the same kind of pricing transparency issues.

    Key Features

    Document validation workflows

    Risk evaluation

    Issues management

    Performance evaluation

    Pros & Cons

    Highly customizable features

    Affordable solution

    Prone to running slowly at times

    Poor customer support

    Price: 

    Contact an Ivalua sales representative for pricing information

    Best for: Large Companies

    Platforms: Web-based only

    gatekeeper vendor management system home page

    An ideal solution for large companies, Gatekeeper is a vendor management system where every single plan has unlimited storage and unlimited users – a huge plus when considering how much you want to spend on a solution.

    A key strength of Gatekeeper is that its a cloud-based system that is very easy to train teams, both big and small. This means that its vendor management features are easy to learn and get the most out of.

    Regardless whether you’re working with 10 vendors or a thousand, it’s easy to manage, store and oversee contracts, while also seamlessly tracking every stage of a vendor lifecycle. So everything, from recruiting new vendors and approving contracts with an eSignature to automating the onboarding process are super easy.

    Another strength of Gatekeeper is its customizability. With its Kanban board, users can create workflows suited to their business needs. Also, this solution integrates with more than 200 solutions, including DMS, communication software and SSO.

    While it has many strengths, Gatekeeper is one of the more expensive solutions on this list. If you work in a large company, it’s best to try out the solution’s free trial to see if its features match your business’s needs.

    Key Features

    Customizable vendor portal

    Record management

    SLA management

    Supplier onboarding

    Pros & Cons

    Platform is completely cloud-based

    Multiple 3rd party integrations

    Only annually-paid plans

    Enterprise plans can be expensive

    Price: 

    Essentials plan costs $875 per month for unlimited users (paid annually)

    Free trial available

    Best for: SMBs

    Platforms: Web-based only

    precoro vendor management system home page

    Another vendor management system with highly customizable features, Precoro’s online portal allows you to manage contracts, store all relevant vendor information and track performance. Procurement is easy to manage using this software solution.

    Users benefit from Precoro because of its simple, easy-to-use interface, as well as its helpful customer service. This means that it’s easy to get vendors up to speed on the technology through seamless onboarding. Also, it integrates with a variety of platforms, including Quickbooks Online and Xero.

    Businesses in industries such as construction, healthcare, hospitality and manufacturing benefit from Precoro’s vendor management capabilities.

    While you need to inquire about pricing for more than 20 users, anything less than that will cost you $35 per month, per user, making this one of the more affordable vendor management systems on this list. However, when you consider that solutions like Connecteam start at $39 per month for up to 50 users (in total), it is clear that you’ll get bigger bang for your buck elsewhere.

    Key Features

    Suppliers portal

    Performance reporting

    Contract management

    Contact directory

    Pros & Cons

    Easy to use and set up

    Useful for businesses in all industries

    No compliance management feature

    Can’t pay vendors directly via the platform

    Price: 

    Small plan costs $35 per user per month (for up to 20 users)

    14-day free trial available

    Best for: Integrations

    Platforms: Web-based only

    beeline vendor management system home page

    With a wide range of integrations, Beeline is a highly adaptable vendor management system, which means that practically any cloud-based software solution your business is currently using can be synced up with it.

    On its own, managers can use Beeline to handle virtually every aspect of vendor management, from contract management and service procurement to vendor compliance, onboarding and training. Another big advantage is how users can use its Direct Sourcing tool to search for and recruit vendors. 

    However, it’s not perfect. Beeline isn’t the best software on this list when it comes to usability and implementation. Scheduling a team training is the best way to test out its features and to see if it’s easy enough for your business and vendors to use.

    It’s worth noting that Beeline’s pricing isn’t available online. This is something worth thinking about when choosing the right VMS. Other solutions on this list, like Connecteam, are more transparent with their pricing.

    Key Features

    Resource tracking

    Contract management

    Compliance management

    Vendor onboarding

    Pros & Cons

    Wide variety of vendor management tools

    Easy to use via the mobile app

    Lack of pricing transparency

    Not easy to set up

    Price: 

    Contact a Beeline sales representative for pricing information.

    Best for: Customer Support

    Platforms: Web-based only

    onspring vendor management system home page

    For businesses selecting a vendor management system for the first time, Onspring is a good place to start. With helpful customer support and virtual training sessions, users can quickly get on their feet with this software. 

    In terms of its features and capabilities, Onspring allows users to store, manage and access all vendor contracts and information from one place. It’s easy to onboard and offboard vendors, track their contracts, customize the dashboard and much more. Onspring also has an intuitive user interface, in which users can simply drag and drop tasks, without too much complication. 

    One of Onspring’s main downsides is that it doesn’t include the widest range of integrations on this list. Also, the only way to see pricing information is by contacting a sales representative. 

    It’s also worth mentioning that its features are designed for vendor management, while apps like Connecteam provide features that are much more dynamic for a wider range of business needs.

    Key Features

    Contract status tracking

    Vendor onboarding

    Customizable dashboards

    Risk assessments

    Pros & Cons

    User-friendly drag-and-drop interface

    Good customer service

    Can’t pay vendors directly

    Functionality can be limiting

    Price: 

    Team plan costs $175 per user/month (up to 20 users)

    Best for: Retail businesses

    Platforms: Web-based

    chondrion vendor management system home page

    Through one single, centralized dashboard, Chondrion allows users to manage all vendor-related areas, such as inventory control, selling, pricing and shipping.

    In terms of its key benefits, Chondrion provides users with visibility of what they need, while also being able to set rules on pricing, communication and reducing operational costs.

    Also, it’s worth noting that Chondrion’s customer support team are very good at helping teams get the most out of the product, while also striving to add new features that might be missing from their current experience.

    It’s fair to say that in terms of integrations, Chondrion could be more flexible. Many solutions on this list are able to integrate with accounting and payroll softwares like Quickbooks Online. Connecteam is a good example of this.

    Key Features

    Order management

    Inventory management

    Reports and analytics

    Bulk invoicing

    Pros & Cons

    Supports inbuilt accounting reports

    Good customer service

    No quote management

    Requires more 3rd party integrations

    Price: 

    Pricing is based on sales order volume per month. Standard plan costs $100 per 1,000 orders.

    30-day free trial

    10. Oracle SCM Cloud

    Best for: Manufacturing companies

    Platforms: Web-based only

    oracle SCM cloud vendor management system home page

    Best suited for small businesses and medium-sized ones, Oracle SCM Cloud is one of the longest-running vendor management systems on this list, and there are plenty of good reasons why it has been running for so long.

    Boasting a wide range of applications to handle procurement, order management, product lifecycle management, inventory and much more, there is nearly nothing this software solution can’t do from a vendor management perspective.

    Once again, it’s worth mentioning that this solution’s primary function is vendor management, whereas apps like Connecteam provide an all-in-one experience for businesses to manage employees. Although it is possible to use many of Connecteam’s features to execute vendor management.

    Key Features

    Procurement cloud

    Supply chain analytics

    Product lifecycle management

    Supply chain planning

    Pros & Cons

    Plenty of storage space

    Easy to use and customizable

    Poor customer service

    Slow to load at times

    Price: 

    Contact Oracle SCM Cloud for pricing information.

    Best for: Sourcing and purchasing

    Platforms: Web-based only

    bright source vendor management system home page

    Bright Source is a solution with vendor management, inventory and sourcing features. It allows companies to effectively manage inventories and their vendor networks. Suited for industries such as healthcare, office supplies, consumer goods and more, Bright Source is designed for businesses of all sizes.

    Some of Bright Source’s key benefits include the fact that you can easily handle software integrations, select vendors by filtering the required criteria, and create replenishment orders directly from the software.

    It’s worth noting that Bright Source is just one component of Deposco Bright Suite, which includes other applications for a variety of purposes, including order management, warehouse management and a point of sale retail app.

    Key Features

    Purchasing automations

    Price tracking

    Inventory management

    Customizable reports

    Pros & Cons

    Great for procurement

    Easy to use

    Unsatisfactory built-in reporting

    Difficult to implement

    Price: 

    Contact a Bright Source sales representative for pricing information

    Compare the Best Vendor Management Systems:

    Reviews (Capterra star-rating)

    Pricing (for 50 users)

    Free Trial 

    Free Plan

    4.8/5

    Starts at $39/mo for 50 users

    14-day trial

    Start Trial

    Yes, up to 50 users

    4.1/5

    Contact a SAP Fieldglass sales representative for pricing information.

    No

    No

    N/A

    Costs $29.99 per month for unlimited users

    Yes

    No

    3.8

    Contact an Ivalua sales representative for pricing information.

    No

    No

    4.8/5

    Essentials plan costs $875 per month for unlimited users (Paid annually).

    Yes

    No

    4.8/5

    Contact a Precro sales representative for pricing information.

    Yes

    No

    4.2/5

    Contact a Beeline sales representative for pricing information.

    No

    No

    4.8/5

    Contact an Onspring sales representative for pricing information.

    No

    No

    4.6/5

    Pricing is based on sales order volume per month.

    Yes

    No

    3.9/5

    Contact an Oracle SCM Cloud sales representative for pricing information.

    No

    No

    N/A

    Contact a Bright Source sales representative for pricing information.

    No

    No

    Reviews (Capterra star-rating)

    4.8/5

    Pricing (for 50 users)

    Starts at $39/mo for 50 users

    Free Trial 

    14-day trial

    Start Trial

    Free Plan

    Yes, up to 50 users

    Reviews (Capterra star-rating)

    4.1/5

    Pricing (for 50 users)

    Contact a SAP Fieldglass sales representative for pricing information.

    Free Trial 

    No

    Free Plan

    No

    Reviews (Capterra star-rating)

    N/A

    Pricing (for 50 users)

    Costs $29.99 per month for unlimited users

    Free Trial 

    Yes

    Free Plan

    No

    Reviews (Capterra star-rating)

    3.8

    Pricing (for 50 users)

    Contact an Ivalua sales representative for pricing information.

    Free Trial 

    No

    Free Plan

    No

    Reviews (Capterra star-rating)

    4.8/5

    Pricing (for 50 users)

    Essentials plan costs $875 per month for unlimited users (Paid annually).

    Free Trial 

    Yes

    Free Plan

    No

    Reviews (Capterra star-rating)

    4.8/5

    Pricing (for 50 users)

    Contact a Precro sales representative for pricing information.

    Free Trial 

    Yes

    Free Plan

    No

    Reviews (Capterra star-rating)

    4.2/5

    Pricing (for 50 users)

    Contact a Beeline sales representative for pricing information.

    Free Trial 

    No

    Free Plan

    No

    Reviews (Capterra star-rating)

    4.8/5

    Pricing (for 50 users)

    Contact an Onspring sales representative for pricing information.

    Free Trial 

    No

    Free Plan

    No

    Reviews (Capterra star-rating)

    4.6/5

    Pricing (for 50 users)

    Pricing is based on sales order volume per month.

    Free Trial 

    Yes

    Free Plan

    No

    Reviews (Capterra star-rating)

    3.9/5

    Pricing (for 50 users)

    Contact an Oracle SCM Cloud sales representative for pricing information.

    Free Trial 

    No

    Free Plan

    No

    Reviews (Capterra star-rating)

    N/A

    Pricing (for 50 users)

    Contact a Bright Source sales representative for pricing information.

    Free Trial 

    No

    Free Plan

    No

    What Are Vendor Management Systems?

    A vendor management system is a web-based software solution that helps businesses manage and acquire staffing services, whether on a permanent or temporary basis. With this kind of software, managers can oversee their entire workforce’s hiring process from one place. They can also reduce risks to boost vendor value throughout all deal life-cycles, while also controlling costs.

    How Do Vendor Management Systems Work?

    As tools to manage and procure contingent workers via staffing agencies, vendor management systems automate all processes when it comes to sourcing, acquiring, overseeing and paying temporary workers. 

    There are some basic functionalities that clients can expect to find in the best vendor management systems. These include:

    • The ability to distribute orders and to combine multiple subscriptions of a customer into one invoice.
    • A repository in which users can create, store and manage data.
    • Businesses are able to make and receive payments using this software.
    • All work processes can be conducted via a main portal.
    • Businesses can track KPIs, service level agreements and contracts via analytics.
    • Features that track login activity and tack all forms of communication between vendors and clients.

    Why Should I Use Vendor Management Systems?

    A vendor management system can benefit a business a wide variety of ways. These include:

    • Users are able to manage the performance of vendors and suppliers.
    • Vendor management systems make businesses more secure and compliant, minimizing risks in the process.
    • Transparency is increased, meaning that approval processes are streamlined and users can easily keep track of all transactions during audits.
    • VMS software ensures that all billing rates, invoices, contracts and payment options are standardized. Users can also upload and manage forms and checklists, as well as certifications, resumes and IDs. 
    • There are many other benefits of VMS software. It saves time, makes organizations more efficient, pinpoints instances of overspending, reduces business costs, makes workflows completely visible, and increases productivity.

    How Much Do Vendor Management Systems Cost?

    The pricing of vendor management systems varies per provider and usually depends on how many users, as well as the plan provided. It also depends on the size of your business and how many vendors you need to work with.

    It’s also important to mention that many vendor management solutions don’t disclose their pricing information online. More often than not, you’ll probably need to contact a sales representation to get an answer.

    Genuity is one of the more affordable vendor management platforms on this list, costing just $29.99 per month for unlimited users. Then there are more expensive apps like Gatekeeper, which cost $875 per month, albeit for unlimited users too.

    connecteam vendor management system user interface

    At the end of the day though, you need to find a solution with vendor management capabilities, in which you will get the most value for what you’re spending. Our #1 pick, Connecteam, has a basic plan fee of $39 per month for the first 50 users. 

    FAQs

    What are the most common types of vendor management?

    Some of the most prevalent forms of vendor management include:

    • Procurement: choosing vendors and acquiring their services
    • Relationship management: forming and maintaining positive working relationships with vendors
    • Onboarding: helping vendors adjust to your business’s work processes and culture
    • Performance management: overseeing and analyzing vendor performance
    • Contract management: handling contract life cycles, as well as renewals, amendments and terminations
    • Vendor risk management: controlling vendor risks attributed to areas such as financial stability, information security and intellectual property.

    What ways can vendor management systems be deployed?

    This kind of software can be deployed in a variety of ways. Including:

    • Shared management services: in some cases, a business collaborates with a VMS provider, creating a shared responsibility between both parties. 
    • In-house management: the client has full control over the vendor management system, allowing them to use features internally without collaborating with the provider.
    • Manager service provider: businesses may choose to fully outsource processes to the provider.

    What is a vendor management lifecycle?

    This is the start-to-finish process of managing vendors in an organized, transparent manner. It is used to monitor vendors and to optimize compliance and performance during their time in the supply chain. 

    The Bottom Line On Vendor Management Systems

    Ultimately, the list of VMS portals mentioned above are designed to build transparent collaboration and communication between businesses and vendors, while also making it easy to share all relevant files and information and provide complete oversight over contract lifecycles.

    While Connecteam isn’t strictly a vendor management system like other solutions on this list, we still believe that it has the best value. This is because you are able to perform practically all of vendor management processes, while also managing your in-house employees at the same time. 

    At any rate, we recommended trying out the vendor management solutions on this list that provide free trials or plans. That way, you can test out their key features and get a better idea of which one is the best fit for your business.

    All of the Vendor Management Tools You Need, in One Place

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