6 Crucial Value Propositions for enterprises to have an AI-driven VMS

Procurement is the backbone of supply-chain for any enterprise and vendor management is the most critical part of procurement that moves the business forward.

But traditional vendor management systems usually cause inefficiencies in business with lack of a centralized platform, disjointed communication, time-consuming onboarding mechanism, siloed processes and compliance risks. Gartner, a globally known research and advisory firm, has forecast that 50% of organizations world-over by 2027 will support supplier-contract negotiations through the use of AI-enabled contract risk analysis and editing tools.

An AI-enabled end-to-end Vendor Management System (VMS) software works as a solution that addresses inefficiencies of traditional procurement systems. AI-powered VMS makes every aspect of vendor management like onboarding, compliance-check, performance-monitoring, invoice processing and payment scheduling automated, enhancing data-accuracy and reducing errors and delays.

Different modules of a new-gen VMS make the vendor management for enterprises a seamless connected journey. But there are 6 benefits which would immediately prompt enterprises to integrate an AI-powered VMS into their ERP-systems.

1. Intelligent Sourcing- It all starts with Intelligent Sourcing, wherein the system leverages on AI-based sourcing tools to gain accuracy and consistency in data-sets, enable automated assessment of supplier capabilities and keep real-time tracking of the sourcing process. Right from identification, documentation, qualification, evaluation and negotiation to selection of vendors, sourcing process becomes digitized and automated.
2. Simple Vendor Onboarding- AI-led Vendor onboarding is simple and rapid with simplified registration, validation and screening of compliances. The reduction in manual tasks frees up procurement teams from a repetitive schedule to concentrate more on other relevant business-activities.
3. Real-time Compliance Tracking- The AI-algorithms of the system make a definite risk assessment of each vendor on the basis of well-defined criteria. Continuous compliance tracking in terms of real-time updates from vendors on requisite certifications, conformity to industry standards and regulatory filings keeps enterprises away from any unnecessary legal troubles.
4. Immediate performance Visibility- AI-led performance monitoring helps enterprises keep a constant eye on delivery timelines of vendors. Dashboards and concurrent analytics keep extracting real-time data-inputs on performance of vendors.
5. Quick and Accurate Invoice Processing- Intelligent algorithms authenticate invoices against negotiated prices and POs in seconds and receipt, modification, approval and processing of invoices from vendors get done with precision seamlessly.
6. Support to Multi-vendor network- An AI-based VMS scrutinizes large data-base, gives out meaningful analytics from real-time tracking of SLAs of all the vendors and executes automated analysis for competitive pricing instantly, making management of a large vendor-network an effortless reality.

Raapyd, a global technology company, offers an AI-powered Vendor Managmenet Solution that is structured as a ready-to-deploy SaaS platform on microservices-based architecture. Raapyd VMS is pre-integrated with ERP-systems to simplify vendor lifecycle management. The system harnesses AI/ML capabilities to optimize source-to-pay operations, support timely decision-making and deliver real business impact for enterprises.