What Is VMS
VMS stands for vendor management software. A VMS is an internet application that is designed to give organizations the tools they need to use vendors on a temporary, on-demand, or contract basis. VMS is a software solution that is usually in the category of software-as-a-service (SaaS).
An effective VMS has many important features. It can aid in classifying vendors to identify and report the risks they pose. Vendor contacts can be stored and managed through the VMS. The VMS can notify the bank or credit union and its vendors of upcoming due dates. It provides portals for temporary vendors to use to interact with the bank. Digital files can be stored in the VMS for easy access when they are needed. Digital files may include contracts with vendors as well as service orders or invoices.
Managers can configure workflows to get the best results from working with the vendors. They can gather information through the VMS that assists in their decision-making. Vendor report templates are included in VMS and may be customizable.
A VMS has a dashboard where managers can see what is happening with their vendors at a glance. This feature improves the response time when vendor risk occurs. It is an important tool for identifying risks and making decisions about how to handle those risks.
A secure VMS allows managers to set the security level for each employee. It can assign vendors to employees based on parameters set by management. The VMS keeps data safe with continuous automatic backup. An audit history log in the VMS can be used to track documents about vendors and their services as well as the employees that work with the vendors.
The VMS has several benefits. It can cut costs by identifying cost-effective vendor solutions. It provides visibility and transparency within the organization to ensure that temporary vendors are not being used more than needed. It is effective in establishing guidelines for choosing, monitoring, and working with vendors in ways that reduce vendor risk.