Top 8 vendor management systems (VMS) for 2025

Managing vendors is one of those business tasks that can quickly become a challenge without the right tools. From tracking contracts to paying invoices, it’s easy for things to spiral out of control if you don’t have a good system in place. Mismanaged vendor relationships can lead to missed deadlines, wasted money, and unnecessary stress.

Vendor management systems (VMS) can make the process simpler by helping you track vendor performance, payments, and compliance, all in one central platform. If you’re looking to save time and run a tighter ship, a VMS may be the way forward.

In this article, we share some of the best vendor management systems for 2025 and how they can help your business.

What is a VMS?

A vendor management system is software that helps businesses manage their suppliers and contractors more efficiently. It’s like a central hub for keeping track of everything related to your vendors—contracts, performance, payments, and more.

A VMS acts as a single platform where you can manage every detail of your vendor relationships. This includes tasks like collecting and storing vendor data, overseeing contracts, tracking service delivery, and managing financial transactions.

The system can also help you efficiently handle vendor-related workflows from one place. These workflows may include selecting suppliers, onboarding them, and processing invoices. This centralized approach reduces the need for manual tracking and provides a clear overview of all vendor-related activities.

4 benefits of using a vendor management software

Managing vendors manually can be time-consuming and prone to mistakes. Vendor management tools take the guesswork out of the process, making it easier to keep things organised and efficient. Here are four key benefits of using a VMS:

Streamlined vendor onboarding and management

Vendor management software simplifies bringing new suppliers on board. It keeps all the necessary information, like contracts, certifications, and contact details, stored in one place, making it easy to track and update. With clear workflows, you can get new vendors up and running quickly without unnecessary back-and-forth.

Improved cost control and budgeting

Staying on top of vendor costs is much easier with vendor management software, because it provides a clear view of how much you’re spending, who you’re spending it with, and where you might be able to save. By tracking invoices and payments in real time, businesses can avoid overspending and stay on budget.

Enhanced vendor performance tracking

A VMS makes it easy to monitor how vendors are performing. You can set up key performance indicators (KPIs) and track metrics like delivery times, quality of work, or compliance with contracts. If issues arise, you’ll have the data to address them quickly.

Automation of vendor payments

Processing payments manually can lead to errors and delays. Vendor management software automates this step, ensuring accurate and timely payments. It also provides a detailed payment history, so you’ll always have records ready if you need them.

Top 8 vendor management systems

Choosing the right vendor management system can feel overwhelming with so many options on the market. To help you narrow it down, we’ve compiled a list of eight of the best vendor management software for 2025, each offering unique features and capabilities to suit different business needs.

1. Rippling

Rippling is a powerful all-in-one workforce management platform that combines vendor management with HR, payroll, and IT tools. It can help businesses handle everything from vendor payments to compliance, all from a single system.

Key features

• Centralized database for managing all vendor details
• Automated payment workflows, including support for global transactions in over 100 currencies
• Seamless integration with accounting tools and CRMs
• Scalable for businesses of any size, from startups to large enterprises
• Customizable workflows to meet your specific business needs

Strengths

• Combines vendor management with other core business tools in one platform
• Simplifies global payments with automatic currency conversion and tax compliance
• Provides real-time visibility into spending, helping businesses avoid unnecessary costs
• Offers flexible customization, making it easy to adapt to different industries
• Features granular, automated approval workflows for enhanced oversight and control
• Delivers real-time notifications on vendor payments to flag any irregularities or transactions above certain volumes

2. SAP Fieldglass

SAP Fieldglass is a cloud-based vendor management system that can help businesses manage external workforce and service providers. 

Key features

• Management of contingent workers and services
• Real-time analytics for tracking vendor performance and spend
• Workflow automation for procurement and vendor selection
• Tools for contract compliance and risk management
• Mobile app
• Integration with other SAP solutions and third-party systems

Strengths

• Large, complex organizations with diverse vendor needs can use SAP Fieldglass to manage their operations.
• It has a focus on compliance and risk reduction.

Weaknesses

• There can be a steep learning curve because of the system’s complexity and wide range of features.
• It's most suitable for larger enterprises, which might make it overwhelming or unnecessary for smaller businesses.

3. Airbase

Airbase is a spend management platform that combines vendor management with accounts payable, corporate cards, and expense tracking. 

Key features

• Includes vendor and expense management
• Automated approval workflows for vendor payments
• Virtual and physical corporate cards for vendor payments
• Real-time reporting for expense visibility
• Tools for managing subscription payments and recurring vendor bills

Strengths

• Can be a good option for businesses seeking a unified spend management solution.
• Has a focus on automation, reducing the need for manual processes.

Weaknesses

• Airbase isn’t as comprehensive for large enterprises with complex vendor ecosystems.
• Users mention that receipt uploads can be frustratingly inconsistent at times, which undermines the efficiency the platform is designed to deliver.

4. Coupa

Coupa is a spend management platform that supports vendor management, procurement, invoicing, and expense tracking.

Key features

• Real-time visibility into spending and budgets
• Tools for procurement, invoicing, and expense management
• AI-driven insights to improve cost-saving opportunities
• Integration with ERP systems like SAP and Oracle
• Compliance tracking for vendor contracts and purchases

Strengths

• Coupa can offer scalability, which may make it suitable for large enterprises with complex vendor and procurement needs.
• The platform provides analytics and AI-driven insights, which can help businesses identify cost-saving opportunities and improve decision-making.

Weaknesses

• Users report the interface feels unintuitive and clunky, which can make navigating the platform frustrating.
• Implementation can be time-consuming, requiring significant effort to integrate with existing systems and processes.

5. OneTrust

OneTrust is a third-party risk management platform that can help businesses manage vendor relationships with a focus on security, compliance, and data privacy.

Key features

• Centralized platform for managing third-party risks and vendor compliance
• Tools for conducting vendor assessments and risk evaluations
• Integration with other compliance and governance tools
• Workflows for vendor onboarding and monitoring
• Reporting and dashboards for tracking vendor performance
• Built-in compliance features for regulations like GDPR and CCPA

Strengths

• OneTrust can help businesses maintain compliance with complex regulatory frameworks.
• The platform provides risk assessment tools, allowing organizations to identify and mitigate potential vendor risks early.

Weaknesses

• Some users say that the interface feels clunky and unintuitive, making it hard to navigate efficiently.
• Users mention that the support team struggles with responsiveness, often taking weeks to resolve issues.

6. QuickBooks

QuickBooks is an accounting platform with basic vendor management capabilities built into its system. 

Key features

• Dashboard for tracking vendor payments and bills
• Tools for recording and categorizing expenses by vendor
• Automated payment scheduling
• Integration with payroll and tax filing tools
• Vendor transaction histories
• Simplified tax reporting with expense tracking by vendor

Strengths

• QuickBooks provides a user-friendly platform that enables small businesses to handle vendor management and accounting.
• The system integrates with other QuickBooks features, creating an all-in-one solution for managing finances.

Weaknesses

• Setting up and customising the platform can be challenging, often requiring a steep learning curve or professional assistance.
• Some users find QuickBooks’ reporting tools limited for tracking vendor-specific performance metrics.

7. Workday 

Workday’s VNDLY Vendor Management System focuses on managing external workforces and services procurement.

Key features

• Platform for managing contingent workers and vendors
• Real-time dashboards for tracking vendor performance and spend
• Workflows for onboarding and compliance checks
• Reporting and analytics tools to evaluate vendor performance
• Mobile-friendly platform

Strengths

• Workday's VNDLY integrates with its broader ecosystem, which can make it suitable for companies already using Workday products.
• The system offers compliance and governance tools, which can help businesses reduce risks associated with vendor relationships.

Weaknesses

• Some users feel that the platform still needs improvement in terms of features and functionality.
• The interface can overwhelm users who are new to VNDLY, leading to confusion during setup and use.

8. ServiceNow

ServiceNow’s Vendor Manager Workspace can give businesses visibility into their vendor relationships while simplifying operations and assisting with compliance.

Key features

• Workspace for managing vendor relationships and performance
• Real-time dashboards for vendor analytics and tracking KPIs
• Workflows for onboarding, compliance, and performance reviews
• Integration with ServiceNow’s broader IT and service management solutions
• Tools for contract and risk management

Strengths

• ServiceNow provides a customizable platform that integrates with its IT management ecosystem.
• The real-time dashboards offer visibility into vendor performance and compliance metrics.

Weaknesses

• The platform includes a lot of features that can take time to understand and may require proper expertise to configure effectively.
• Customizing the platform for specific enterprises can be time-consuming, especially for organizations with unique requirements.

How to choose a vendor management system

Finding the right vendor management solution can feel overwhelming, especially with so many options available. To make the decision easier, you can focus on these key factors and how they’ll impact your business:

Ease of use and user experience

A system that’s difficult to navigate can cause delays and frustration for your team. Look for software with an intuitive interface that’s easy to learn and use daily. For example, if your team needs to onboard a new vendor quickly, the process should take just a few clicks, not hours of training or digging through menus.

Integration with existing tools

Your vendor management software should work seamlessly with the tools your business already relies on, like accounting software, payroll systems, or CRMs. For instance, if you use QuickBooks for financials, make sure the VMS can sync vendor payments directly with your QuickBooks account to avoid double entry or manual errors.

Customization and flexibility

Every business has unique needs, so the vendor management software you choose should adapt to your workflows, not the other way around. For example, a construction company may need customized workflows to track vendor compliance for safety regulations, while a tech company might prioritize performance metrics for service providers.

Scalability

As your business grows, your VMS needs to grow with you. Choose vendor management software that can handle more vendors, larger budgets, and additional features without requiring an overhaul. For example, a startup might start with just a few suppliers but may need the capacity to manage hundreds as they expand globally.

Customer support options

Reliable support can make all the difference when you hit a roadblock or need help to customize the system. Look for a provider with responsive support, such as live chat, phone, or dedicated account managers. Imagine having an urgent issue with a delayed vendor payment and needing help—quick, accessible support can save the day.

4 essential features of a vendor management software

A reliable vendor management solution should include features that simplify and enhance the procurement process, vendor relationships, and overall operations. Here are four key features every VMS should have:

Vendor onboarding

A good VMS streamlines the vendor onboarding process by automating tasks like collecting required documents, verifying credentials, and setting up contracts. This ensures you can bring new vendors into the procurement process quickly and efficiently. For instance, when onboarding a vendor for a contingent workforce project, the VMS can handle compliance checks and approvals, minimizing delays and errors.

Payment processing

Managing payments is a critical part of vendor management, and a VMS simplifies this with automated workflows. It tracks invoices, schedules payments, and ensures timely disbursements. For example, when dealing with multiple suppliers in a procurement cycle, the VMS can automatically match invoices to contracts and flag discrepancies for review, ensuring smooth payment operations.

Compliance tracking

Compliance is essential, especially when working with a contingent workforce or vendors subject to regulatory requirements. A VMS keeps track of certifications, contract terms, and other compliance-related details.

Reporting and analytics

Insightful reporting and analytics tools in a VMS provide a clear view of vendor performance, spending patterns, and the overall procurement process. These insights help businesses make informed decisions about their vendor relationships. For instance, a VMS can generate reports showing which vendors consistently meet deadlines and deliver high-quality work, allowing businesses to prioritize those suppliers in future procurement strategies.

Experience a better way to manage vendors with Rippling

Rippling isn’t just a vendor management solution—it’s a unified workforce management platform that combines HR, payroll, IT, and spend management. This approach ensures that every aspect of your business works seamlessly together, eliminating inefficiencies and simplifying workflows.

With Rippling's expense management software, you can manage all your business expenses in one place, from vendor payments to spend approvals and tracking. You can pay invoices globally in over 100 currencies while maintaining compliance with tax and reporting requirements. The system automates critical workflows, giving you real-time visibility into vendor spend and enabling you to approve payments with just a few clicks.

Rippling also integrates with your existing tools, like Xero, Quickbooks, and Netsuite, making it easier to streamline your procurement process while reducing manual work and the risk of errors.

The best part? Rippling can grow with your business. Whether you’re managing a handful of vendors or expanding to a global network, Rippling’s scalability ensures that the platform adapts to your changing needs without missing a beat.

Vendor management systems FAQs

What is an example of vendor management?

Vendor management involves the handling of every aspect of your relationship with suppliers or service providers. For example, let’s say you work with a marketing agency. Vendor management would include negotiating their contract, ensuring you pay their invoices on time, tracking their performance against agreed deliverables, and maintaining compliance with any regulations. Essentially, it makes sure the partnership runs smoothly and delivers value to your business.

What is a vendor?

A vendor is any individual or company that provides goods or services to your business. This could include everything from suppliers of raw materials to IT contractors or service providers, like cleaning companies. Vendors play an essential role in helping businesses operate and meet their goals.

Why is security important in a vendor management system?

Security is a major factor because vendor management systems handle sensitive information, such as contracts, payment details, and compliance documents. If that data isn’t secure, it can lead to breaches, financial losses, or regulatory issues. A secure system protects your business from risks like unauthorized access, fraud, or data theft, ensuring vendor relationships remain reliable and trustworthy.

What is a contingent worker?

A contingent worker is someone who works for your business temporarily or on a project basis, rather than as a full-time employee. This includes freelancers, contractors, consultants, or temporary staff. Businesses often rely on contingent workers to fill short-term needs or provide specialized skills for specific projects.

This blog is based on information available to Rippling as of March 27, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.