FACT CHECKED
The best open source vendor management software (VMS) should control costs, minimize third-party risks, and enhance smooth operations.
Open source VMS provides workflow automation by developing, managing, and maintaining relationships. It helps determine if agreements with contractors and third-party vendors are met.
The best open source VMS should monitor products and services provided by various vendors. They must be safe and comply with the laws and regulations.
Additionally, the software should have a vendor portal and allow the organization’s workers to carry out various roles on the platform.
It should store all vendor documents and other necessary information for easy access.
What is open-source vendor management software?
An open-source vendor management software is an application developed in collaboration with the public and made freely available for individuals or businesses. The open-source VMS makes managing and procuring staffing services easier to save time and minimize errors.
Open source means anyone can use, study, change, or even distribute it after modification. The source code is publicly accessible, unlike other software.
Open source VMS makes it easier for companies to tailor the source code to run vendor management operations. The copyright holder grants the users the right to alter the source code in open-source software.
What should an open-source vendor management software do?
The vendor management process is lengthy and costly to be carried out manually. But a VMS can be customized to carry out the process to the end automatically.
Below is an overview of how this process automation reduces the department’s workload.
First, it identifies the organization’s needs and requirements. The software monitors various supplier performances. Then, it generates reports for the critical decision to keep renewing or ending the contracts. Finding the perfect solution becomes more straightforward once the organization’s needs and requirements are determined.
Secondly, it identifies potential vendors. The software initiates bids from vendors by allowing them to key in their details for the contract. Afterward, the software identifies each vendor’s strengths and weaknesses and analyzes risks posed.
Third, it initiates the contracts after selecting vendors by compiling the score reports in budget and business criteria. After signing the contract, the software helps the vendors to understand the delivery timelines and the reporting flow. It also enlightens the vendors on contract terms and all necessary obligations.
Fourth, it executes the contract by monitoring if deliverables are completed within the stated time frames. It also records the documents and the communication between the vendor and the necessary departments. And finally, it clears the financial terms.
Fifth, it monitors and generates reports on the vendor’s performance. Then it creates a report on improvement areas and the quality of the end products.
Lastly, it generates a report with a key decision to end or renew the contracts. If the contract ends, the cycle begins again.
Features of an open-source vendor management software
Below are the features that the open-source VMS needs:
1. Cost control
It should manage vendor payment processes and quickly identify discrepancies, especially exaggerated pay rates.
2. Tracking performance
By analyzing the vendor data, it should track performance and determine the suitable supplier for the organization.
3. Reporting and analytics
It stores vendor transaction data in a cloud-based solution. The data assists in identifying the new markets, products, and actual projects to expand with trusted vendors. It also generates emails on essential reminders.
4. Expense management
The system should identify the vendors that pose higher risks and allocate substantial resources efficiently.
5. Data storage
The software should store all necessary documents and information in one data storage area for easy assessment.
6. Security and control
Recording all the activities makes it easier to trace any risk factor and address it accordingly. So, all operations should be carried out through the software.
7. Staff management
Every department is assigned a different role. The software manages the staff by providing a platform for each to carry out their duty.
8. Vendor portal
The vendor portal should provide a platform for supplier self-service. Self-service activities include keying in their information and submitting it for analysis.
Open source vendor management software practices examples
Open source VMS are customizable hence compatible with nearly all organizations. They are preferable because of their flexibility, ability to train workers, enhanced performance, and stability.
Examples of open-source vendor management software practices are;
- Risks assessment by listing all organization’s vendors and ranking them according to their criticalities.
- Continuous monitoring by reviewing agreements and comparing performances. The software allows various staff to be assigned for reviewing monitoring reports.
- Documentation and reporting for accountability and easy conflict solving between vendors and the organization’s departments.
- Vendor activities discontinuation after the end of contacts. The practice minimizes errors and conflicts in terms of financial agreements.
- Confidentiality agreements to ensure critical data cannot be obtained and used for unintended purposes. Confidentiality is vital because some vendors may have unsupervised access to the organization’s facilities.
The best open-source vendor management software
| Software name | Free | Vendor portal | Reporting and analysis | Cost control | |
|---|---|---|---|---|---|
| 1 | Dolibarr | Yes | Yes | Yes | Yes |
| 2 | Odoo | Yes | Yes | Yes | Yes |
| 3 | ProcuMan | Yes | Yes | Yes | Yes |
1. DOLIBARR
Dolibarr has Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) functionalities.
It’s run on various mobile and desktop operating systems. The software is even more flexible because it can run on virtual, shared, or dedicated systems.
Notable features
- It has vendor portal
- Reporting and analytics
- Customizable
- Multi-platform suite.
2. ODOO
Odoo automates an organization’s administrative processes like inventory and stocks. The software is parceled together with its purchase solution suite.
Notable features
- Vendor portal
- Audit trial
- Reporting and analytics
- Workflow monitoring
3. PROCUMAN
Procuman is a solution to business procurement needs. It’s capable of integrating Vendor Relationship Management into one dashboard.
On the dashboard, it can track vendor queries and solve conflicts.
Notable features
- Audit trial
- Reporting and analytics
- Vendor portal
- Staff management
- Enhanced security
An open-source Vendor Management Software takes things up a notch because it’s customizable. So, nearly all organizations can benefit provided the staff has software development knowledge.
Nonetheless, they can hire an IT Specialist.
