The vendor management software market is booming, and for a good reason. Strong relationships with suppliers can get you preferential treatment—whether that’s being first in line for new products, speedy assistance when a shipment goes AWOL, or bulk discounts to further improve your profit margins.
With a market size expected to hit $17.2 billion by 2030, businesses are clearly investing heavily in better ways to manage vendor relationships.
But with hundreds of solutions available, finding the right one can feel like searching for a needle in a haystack. Ahead, you’ll discover the six top VMS options to date, with criteria for choosing the best one for your business.
What is vendor management software?
Vendor management software (VMS) handles all your supplier relationships. It centralizes everything vendor-related: contracts, performance tracking, payments, products, and vendor communication. Rather than dig through endless email chains and spreadsheets, all your information lives in one place.
Most modern vendor management systems are cloud-based, so you can access them from anywhere. You can also use them throughout the entire vendor lifecycle, from onboarding to contract renewals.
Companies of all sizes use VMS, but it’s especially important for retail brands that manage multiple suppliers, manufacturers, and service providers.
Key benefits of vendor management software include:
- Saves time by automating routine tasks
- Reduces errors in vendor payments and contract management
- Provides real-time visibility to track vendor performance
- Helps spot cost-saving opportunities
- Makes compliance and audit processes smoother
- Improves supplier relationships through better communication
6 best vendor management software
1. Shopify
Best for: Retailers looking to integrate vendor management with their unified commerce strategy
Shopify provides essential vendor management features that support a unified commerce approach to retail operations. While not a dedicated VMS, it offers management tools for retailers to oversee suppliers and inventory effectively through its admin interface and the Stocky app integration.
The unified commerce platform connects vendor data with product management and inventory control, making it an ideal solution for retailers looking to consolidate their tech stack and manage operations cohesively. Integrating vendor management with other commerce operations allows you to create more seamless workflows and gain visibility across your entire supply chain.
Retailers can also extend their vendor management capabilities through Shopify's App Store using specialized apps for supplier portals, advanced inventory management, and automated purchasing workflows.
Features:
- Built-in vendor information management in Shopify admin
- Product filtering and sorting by vendor
- Bulk editing capabilities for vendor assignments
- Stocky app integration for detailed supplier profiles and inventory management
- Vendor performance tracking through sales data
- Shopify Bill Pay for streamlined vendor payments (region-dependent)
- CSV import/export for vendor data management
Havens Luxury Metals is just one retailer using Shopify Bill Pay to manage vendors. It previously paid suppliers manually by check, but things fell through the cracks because the onus was on founder Alex Havens to pay bills before their due dates.
The ability to upload vendor invoices to Bill Pay meant that Alex could use automated invoice processing to pay bills by credit card, ACH transfer, or Shopify Balance. Alex estimates this saves up to two hours a week, while also better organizing the company’s finances.
“Shopify Bill Pay transformed our payment process, eliminating the need for writing checks and giving us more control over our cash flow,” Alex says.
Pricing: Included with Shopify plans. Stocky is included with the Shopify POS Pro subscription.
2. SAP Fieldglass
Best for: Large enterprises and organizations with complex external workforce needs
SAP Fieldglass offers an enterprise VMS for large brands. The platform helps retailers manage complex networks of temporary staff, service providers, and contractors with its workforce management features.
As part of SAP's ecosystem, Fieldglass helps organizations integrate workforce management with their broader enterprise systems, offering visibility and control over external talent and services spending.
SAP Fieldglass also tracks statement of work (SOW)-based projects with external service providers. For example, if you’re placing a purchase order with a supplier for 500 units, you can upload the SOW to Fieldglass and track the procurement process. This extra visibility gives 360-degree insight into expenses to assist with budgeting.
Features:
- Contingent Workforce Management module for holistic non-payroll workforce oversight
- Services Procurement capabilities for SOW-based project tracking
- Assignment Management for coordinating multiple external workers
- Worker Profile Management for talent tracking and compliance
- Cloud-based application with ERP integration
- Security and risk mitigation tools
- Comprehensive analytics and reporting
- Automated onboarding and workflow management
Pricing: Contact SAP for custom pricing.
3. Coupa
Best for: Retailers looking to automate supplier management processes while maintaining strong risk controls and compliance
Coupa offers a supplier management solution as part of its business spend management (BSM) platform. It focuses on vendor self-service and supplier risk management, helping businesses manage supplier relationships more efficiently.
For retailers dealing with complex supplier networks and compliance initiatives, Coupa provides AI-powered insights and automated workflows to reduce manual processes, mitigate supplier risk, and strengthen relationships with vendors.
Features:
- Intuitive supplier self-service portal for information management and updates
- AI-powered risk monitoring and automated alerts
- Multi-domain risk assessments (InfoSec, GDPR, anti-bribery)
- Diversity and inclusion tracking with access to 2M+ certified diverse suppliers
- Performance scorecards and continuous monitoring
- Automated supplier onboarding and information validation
- Built-in vendor fraud prevention for sensitive supplier data
- Real-time compliance monitoring and alerts
- Seamless integration with procurement and invoice management
Pricing: Contact Coupa for custom pricing.
4. Oracle SCM Cloud
Best for: Large-scale enterprises already invested in the Oracle ecosystem
Oracle is a well-known enterprise-grade software brand. Its tools are part of its SCM cloud suite, and help organizations standardize the vendor management process from qualification to evaluation.
As part of Oracle's unified cloud ecosystem, the vendor management module integrates seamlessly with other Oracle applications, offering enhanced visibility and control across the entire supplier lifecycle. It’s a good option if you already use Oracle products like the NetSuite enterprise resource planning (ERP) system.
Features:
- Comprehensive vendor record management with detailed profiling
- Structured pre-qualification workflows for new vendors
- Advanced vendor evaluation and performance tracking
- Master Service Agreement (MSA) management and automation
- Facilities bid management and vendor sourcing
- Integration with Oracle ERP and procurement modules
- Automated compliance monitoring and tracking
- Real-time vendor performance analytics
Pricing: Contact Oracle for custom enterprise pricing.
💡 Are you an Oracle NetSuite user? Connect your system to Shopify through the NetSuite ERP Connector.
5. Kissflow Procurement Cloud
Best for: Retailers looking for a solution with quick implementation and ease of use
Kissflow Procurement Cloud offers a flexible, user-friendly procurement platform focused on customization and ease of use. It stands out for its low-code capabilities that allow retailers to tailor the procurement process to their specific needs.
Unlike more rigid enterprise solutions, Kissflow focuses on making supplier management accessible while providing the tools required for end-to-end procurement automation.
Features:
- Intuitive supplier portal for self-service management
- Customizable supplier onboarding workflows
- Performance tracking with configurable scorecards
- Centralized supplier information management
- Real-time catalog management capabilities
- Contract storage and management
- Integrated supplier performance ratings
- Custom metric tracking for supplier evaluation
Pricing: Starts from $1,500 per month
6. Procurify
Best for: Companies looking to reduce maverick spending and establish more structured procurement processes without overwhelming complexity
Procurify simplifies the retailer-vendor relationship with strategic sourcing and documentation management features. You can centralize vendor records and documentation while integrating external supplier catalogs for more efficient ordering.
With Procurify’s centralized approach, you can better negotiate rates, track spending against established vendor contracts, and assess vendor risks. It also has built-in approval processes to ensure the appropriate person signs off on purchase orders and invoices.
Features:
- Automated vendor onboarding workflows with standardized forms
- Pre-approval system for vendor management
- Centralized document storage for W9s, contracts, and agreements
- Custom product catalogs for controlled purchasing
- PunchOut capabilities for external supplier catalogs
- Contract tracking and renewal management
- Vendor performance tracking and analysis
- Integration with major retail ERP and accounting systems
Pricing: Contact Procurify for more details.
How to choose vendor management software
Scalability
A vendor management platform should grow seamlessly with your organization. The last thing you want is to migrate your VMS later down the line.
Consider whether your shortlisted vendors can handle an expanding supplier base, increasing transaction volumes, and growing user counts without slowing performance.
Look for features like batch processing capabilities, automated workflow scaling, and load balancing. The platform should also offer flexible pricing models that align with your growth trajectory.
Customization
Your vendor management solution should adapt to your organization's unique processes, not force you to change them. Key customization features should include configurable vendor management workflows, custom fields and forms, adjustable approval hierarchies, and branded portal interfaces.
Review whether you can modify dashboards, reports, and notification settings without developer support to reduce your total cost of ownership. The platform should also accommodate industry-specific requirements and regional variations.
Integration
Integration capabilities should go beyond API connections. Look for platforms that support real-time data synchronization, automated data validation, and secure information exchange to keep the VMS running like a well-oiled machine.
The VMS should have a native integration layer that works seamlessly with your existing systems—including ERP, inventory management, and order management systems. Consider whether the platform offers real-time data synchronization without requiring complex middleware solutions. Evaluate both pre-built connectors and custom integration capabilities.
Reporting and analytics
Before committing to a VMS, look for features like vendor scorecards, spend analysis, compliance tracking, and risk assessment reports. These insights give 360-degree-visibility into your procurement processes to reduce maverick spending and identify cost savings.
It’s not just you who needs these reports—your software should offer real-time performance metrics and the ability to export reports to share with stakeholders, such as store managers, buying teams, and merchandising managers.
Support and training
Evaluate the vendor's support infrastructure and training resources to ensure successful implementation and adoption. Look for multiple support channels, including phone, email, and chat, with clearly defined response times. The ability to reach out to a dedicated account manager can help you quickly resolve issues that impact your ability to communicate with suppliers.
Also, assess whether the VMS provides personalized onboarding, ongoing training sessions, and a dedicated customer success manager. These extra materials can be passed onto your employees to get buy-in for the new software.
Find the right vendor management software for your organization
While comparing vendor management solutions, remember that the goal isn't to find the best overall platform, but the one that best aligns with your vendor ecosystem and procurement workflows. Your VMS should seamlessly fit into your daily operations while making supplier relationships more efficient and transparent.
Consider the core vendor management features and the additional procurement and compliance tools offered. A unified system like Shopify connects your vendor database, contract management, payment processing, and compliance monitoring to streamline operations significantly.
Vendor management software FAQ
Does Microsoft have a vendor management system?
Microsoft doesn't have a standalone vendor management system, but it offers supplier management capabilities through Microsoft Dynamics 365 Supply Chain Management. This module handles vendor management tasks like onboarding, performance tracking, and relationship management as part of their broader ERP solution.
How much does vendor management software cost?
Vendor management software typically ranges from $50 to $500 per user per month, with enterprise solutions costing several thousand dollars monthly, depending on features and scale. Many providers offer tiered pricing based on the number of users, vendors managed, and functionality needed, with some requiring annual commitments for better rates.
Is SAP a vendor management system?
SAP isn't solely a vendor management system. It’s a comprehensive enterprise software suite with robust vendor management capabilities offered through its SAP Ariba and SAP S/4HANA modules.
How do I manage vendors on Shopify?
Follow these steps to manage vendors on Shopify:
- From your Shopify admin, go to Finance > Bill Pay.
- Click Manage vendors.
- Click the vendor.
- Next to the details or delivery method that you want to edit, click Edit.
- Edit the details, and then click Save details.
