The procurement software market is projected to reach $9.5 billion by 2028 according to Verified Market Research. Encompassing all solutions designed to automate and streamline procurement processes, the software market for procurement isn't growing without a reason.

Through the years of data, business owners, executives, supply chain managers, and procurement officers have realized that automated procurement processes help optimize resources, streamline processes, and competitiveness in a crowded market.

One popular type of procurement software is a vendor portal. A vendor management portal automates manual tasks and eliminates many cumbersome workflows in conventional procurement processes.

Especially in today's business landscape where disruptions are happening on all fronts, the process of sourcing and obtaining supplies, raw materials, service providers, and contractors must be completed quickly. Using supplier portal software speeds things up and lets businesses and organizations stay relevant in their spaces.

This article serves as the ultimate guide to the world of vendor portals, covering what they are, their benefits, applications, and more. Before diving deep into the topic, let’s properly explain what a supplier portal is.

Table of Content:

• What is a Vendor Portal?
• What are Key Features of Vendor Portals?
• What are Benefits of Using a Vendor Portal?
• Types of Supplier Portals
• How to Implement a Vendor Portal?
• Top 3 Vendor (Supplier) Portal Solutions
• Challenges and Considerations
• Conclusion and Recommendations

What Is a Vendor Portal?

A vendor portal or supplier portal is a web-based portal where businesses and other establishments looking to procure goods and services connect and collaborate with vendors. The primary purpose of a vendor’s portal is to help get goods and services from suppliers seamlessly and efficiently.

Clinked Vendor Portal

A typical supplier portal is used for managing supplier contact details, contracts, documents, workflow progress, and communication.

The vendor portal should have robust features that help account for all goods received, outstanding invoices, cleared invoices, purchase history, and other information and data.

In terms of infrastructure, many businesses and organizations use hosted SaaS procurement software solutions. Larger organizations tend to build their vendor portals from scratch for more customizations tailored to their needs.

Service providers like Clinked offer client portal solutions customizable for the requirements of small businesses up to large organizations.

What are Key Features of Vendor Portals?

When looking for procurement software to invest in, here are some functions and capabilities to consider in a vendor portal.

User Access and Authentication

A vendor portal should be a secured platform that is accessible not to just anyone but authorized individuals. A combination of username and password is the standard access control for many solutions.

Clinked User Access and Authentication

But this combination isn't enough considering the confidential nature of procurement documents and files. Product specifications, pricing, and supplier details are valuable to competition and must be protected.

Therefore, look for a procurement portal that provides an extra layer of security with two-factor authentication (2FA).

2FA could be through one-time OTP, biometric verification, or trusted device access. So in addition to providing a username and password, a user would need to confirm their identity using one of these methods.

Clinked Two-Factor Authentication (2FA)

This layered approach to security is important, especially in today's digital landscape where cyber security threats are a real concern.

File Sharing

A procurement portal should make it easy for users and your business to securely share important files, with the emphasis being on security like user access and authentication, security for sensitive information, classified documents, and trade secrets is crucial.

Securely share files with Clinked

Prioritize a platform that uses, for instance, bank-grade encryption and robust security measures to secure everything that happens within its environment, including the transfer of files.

Document Management

There are so many different business documents to be shared during a procurement workflow. These include product or service information, contracts, compliance documents, and confidentiality agreements. For every document type, there is a corresponding level of importance.

While a typical vendor portal will have a module through which stakeholders can share documents, how easy it is to manage such files should be an important consideration.

A procurement platform having an option to digitally sign documents like contracts, proposals, and Non-Disclosure Agreements (NDAs) should be desired.

On-platform document signing provides security benefits. It can eliminate the need to download a file to a local computer before adding a signature. Data breaches could occur during the download process, leading to all sorts of complications.

The ability to manage sensitive documents within the platform’s environment reduces the risk of data leaks.

Other desirable document management features to consider in a procurement solution include but are not limited to search, tags, labeling, sorting, and version control.

Task Management

Creating, assigning, and managing tasks should be part of a supplier portal infrastructure. This feature helps both sides create and complete tasks required to progress from one stage of the procurement activities to another.

For example, stakeholders may create a task for a proposal request. Once the vendor provides the requested information, that task can be marked as complete and attention can shift to the next task in the procurement pipeline.

Task management functionality serves as a checklist for all necessary steps to get to the successful completion of a buying process and provides a structured workflow, breaking down overwhelming procurement tasks into small chunks.

Clinked's Task Management Tool

Teams on the procuring and vendor sides should have the option to comment, tag, start discussions, and share files during task management. Calendar integration will also be useful in visualizing upcoming tasks and deadlines.

Other stages of a procurement process that may benefit from a task management module include contract e-sign, goods inspection, issues resolution, invoicing, and billing settlement. 

All in all, task management provides a structured framework for managing workloads and other activities that move a procurement effort from point A to point B until completion.

Ease Of Use and User Experience

Is the vendor management portal interface easy to navigate and inviting to the user? This is another crucial consideration before committing to a portal software.

In many cases, those handling a procurement portal on both sides aren't technologically advanced individuals. They are just regular folks with basic knowledge of computers and the internet. So, it's going to be a disservice to them if the procurement portal is difficult to navigate.

Designs like helper texts or tooltips (the small notes or messages displayed when you hover over a page element) can be incorporated into the portal design for ease of use.

Whether the portal development project will be handled by an internal design team or contracted to an external agency, it is important to get the UI/UX right in terms of usability as well as functionality.

Invoice Submission and Processing

Vendor portal solutions should have a direct feature to send/receive invoices for goods or services provided. This automated invoice processing eliminates the need for paper-based or traditional invoice management.

Depending on the industry and needs, a vendor portal may best connect with the ERP system of your establishment if you have one. This integration means vendors' payment is automated too, adding to the accuracy and efficiency of payment processing. 

The invoice submission and processing feature in a procurement portal should also securely store financial records. Having financial records in the portal’s environment prevents disputes and misunderstandings and ensures business continuity and compliance with the legal requirements of keeping financial records.

Security & Compliance

A secure vendor platform should have bank-grade encryption against unauthorized access and malicious actors. Robust security features are essential to prevent hackers from stealing information and data.

Also, security measures help businesses comply with data privacy regulations like CCPA (California Consumer Privacy Act) and GDPR (General Data Protection Regulation).

Common security approaches for vendor portals include encryption, firewalls, and DDOS protection systems. These are in addition to robust access control and authentication on the part of individual users. 

In individual cases, a procurement platform would do well to provide onboarding education, including reminders on proper login detail practices.

This reminder is important because it’s one thing for a procurement platform to be well secured by advanced security measures but a completely different matter for users to keep their login information safe from unauthorized access.

Through and through protection not only gives the vendor and the supply of peace of mind that confidential information is secured but helps with compliance efforts.

Communication Tools

A vendor portal’s primary function is to facilitate procurement communication and coordination between all parties involved. As such, any procurement portal should have robust communication tools as part of its features.

Update to any task should automatically send notifications to teams or individuals working on the task.

There should be a dedicated messaging channel where the vendor’s point of contact or representative can communicate directly with the procurer.

A separate messaging channel helps distinguish private correspondences from comments meant for tasks or project boards.

Integration Capabilities

Integration of a vendor management portal with CRM, Enterprise Resource Planning (ERP), and any other financial software used by the establishment is important.

Integration eliminates the need for manual data entry and streamlines processes. It also provides a comprehensive view of procurement workflows.

Integration, for example, can help populate invoices from the supplier portal into the ERP software, ensuring data from the procurement environment of your business is added to your ERP database. This helps maintain a centralized space for all business functions, including manufacturing, finance, HR, and procurement.

Reporting and Analytics

Some of the other essential features to look out for in a supplier portal are reporting and analytics. Reporting helps your procuring firm visually see data that has been sorted and summarized.

Reporting takes care of data like the total amount spent with a supplier in a structured format like on a dashboard, chart, or table. 

Analytics, on the other hand, helps draw information or conclusions from available data. Use analytics to get insights, identify trends and patterns, forecasts, and draw conclusions.

Analytics on how long it took a vendor to deliver goods or services can help your management team decide whether to find another supplier with faster processing and delivery times.

What are the Benefits of Using a Vendor Portal?

If your business or organization is engaging with multiple suppliers, then there are many benefits a supplier portal brings to the table. Below we consider some of the advantages to having a vendor portal as part of your business tools.

Streamlining Procurement Processes

Contract negotiation and payment processing are inefficient and time-consuming with traditional procurement processes.

For example, sharing information and files with suppliers via e-mail creates many delays and complexities. This is especially true when simultaneously coordinating with multiple suppliers for different goods or services.

Vendor portals redefine how establishments manage relationships with their suppliers. A procurement portal serves as a centralized platform where a business can communicate with multiple vendors for different services or goods, discuss contracts, resolve issues, and sort payments on time.

Having everything concerning a procurement in one place leads to faster communication, reduced risk of errors, and overall procurement efficiency,

Improving Communication Between Buyers and Suppliers

At different stages and times, the business or company buying will have to issue various notifications and reminders possibly to different vendors. Likewise, suppliers have to communicate with the buying firm.

Without using a procurement portal, messages and reminders are often sent manually through email by the point of contact.

Introducing a supplier portal to a procurement process means all forms of communication can be delivered faster through the dedicated portal.

Many procurement portals come with complementary mobile apps so that those in charge of messaging can receive notifications and provide updates from anywhere in real-time.

Efficient messaging and communicating channels provided by a supplier portal let both parties have more time redirected to other important tasks.

Enhancing Transparency and Accountability

Audit trails functionality offered in a vendor management portal helps record all actions taken within the portal, ensuring transparency and accountability.

Clinked's Audit Trail Feature

An audit trail offers a date and time-stamped record of the details around a task, file record, conversation, financial ledger entry, and other events.

For instance, a detailed audit trail can make all the difference when resolving issues relating to payment or orders. Changes made to documents can be revisited, payment records can be accessed, and other user activities can be tracked.

Traditional procurement processes, on the other hand, often rely on paper-based records which can be difficult to track and trace, leading to accountability and transparency concerns. Even email records can be erased, leading to confusion and disagreements.

Reducing Manual Data Entry and Errors

In conventional procurement management systems, information and data are manually recorded and copied from one place to another, leading to inconsistencies in figures and data.

Integration is one of the features in a vendor’s portal that greatly reduces the need to enter data manually and brings entry errors to a bare minimum.

The portal can even integrate with existing ERP software for automated data transfer between systems.

In some cases, existing records can be used to prefill data like supplier information, reducing the need for manual input.

Also, automation can create workflows so that an item assigned to a procurement task carries over to the next stage based on predefined rules.

Accelerating Payment Cycles and Financial Management

With a procurement management solution, suppliers can upload invoices directly to the portal for faster approval and payment processing.

In some cases, the portal can compare invoices with orders and received goods for accuracy and error checks. Through automation, procurement portal solutions can route invoices to a predefined process for faster review and authorization.

Also, real-time information on invoices, order status, and payment records helps reduce delays and with efficient financial management.

Types of Vendor Portals

In your research, you will come across different types of supplier portals. It will be helpful to know the differences between all the options available out there. Here’s what to know about the main categories of vendor portals.

1. Standalone Vendor Portals vs. Integrated Portals Within ERP Systems

A standalone vendor portal as the name suggests is a software solution that focuses only on the management of a company's procurement processes.

Every single feature within such a platform is designed to make the procurement processes effective and efficient. It helps speed up the collection and processing of key procurement data so that the buying processes can be streamlined.

Typical features found in these systems are for client onboarding, communication, signing contracts, invoicing management, and payment processing.

On the other hand, an integrated portal within an ERP system means a distinct module or section of a company’s Enterprise Resource Planning (ERP) software used for handling procurement activities.

For perspective, think of an ERP system as a collection of all bricks used in building a house, while an integrated procurement portal is essentially a single brick within the structure.

ERP software in its entirety is used to handle various business functions including finance, manufacturing, and HR. It allows the integration of business processes into a single system, including customer relationship management, supply chain management, inventory and warehousing, and recruiting.

Though its built design can vary from industry to industry, ERP software generally serves as a centralized platform for comprehensive business management.

Again, an integrated portal within an ERP is just dedicated to supplier management.

The main differential point between a standalone vendor portal and an integrated solution within an ERP system is the robustness of functionality.

Standalone solution development is focused on building a feature-rich platform that makes procurement more efficient. While integrated procurement modules in ERP are also built to perform, adding too many functions or features can water down the entire platform’s usability and potentially compromise performance.

This is so as integrated solutions often need to balance the resource demands of multiple business processes. This can sometimes lead to trade-offs in the procurement module features.

While ERP software offers a comprehensive solution for all aspects of a business, the integration capabilities of many dedicated portals ensure you don’t miss out on important activities.

Integration lets you connect activities in a standalone procurement portal with your main business ERP solution.

2. Industry-Specific Vendor Portals

An industry-specific vendor management portal is a type of standalone supplier portal and is performance-built to meet the unique needs of a particular industry.

This type of portal could be for product manufacturers, retail outlets, government agencies, etc.

The needs of a manufacturing company seeking a procurement management portal will differ dramatically from those of a government agency. This is because of differences in operational requirements, scale of operations, and regulatory frameworks.

A procurement portal for a government agency may heavily focus on features relating to maximum security of file transfer and compliance with regulations.

On the other hand, a production company portal could be much more geared toward regular and automation features that reduce costs and boost operational efficiency.

There are some existing solutions with functionalities that primarily address the specific needs of certain industries. So as a government procurement officer, this option may be worth considering.

Establishments looking for industry-specific builds can also use their in-house team or contract a service provider for a customized solution that meets operational needs and requirements.

3. Customizable Vs. Out-Of-The-Box Solutions

Two other options you'd likely come across when out there looking for a procurement portal are customizable solutions and out-of-the-box offerings.

A customizable procurement portal means the software can be built from scratch or customized to fit the unique requirements of your business or organization.

Most solution providers would present you with a demo product to have an idea of their development prowess. Based on what the provider has to offer and your own predefined needs, you can work together on how flexible you'd like your own solution to be.

Out-of-the-box supplier portals come as ready-made solutions with prebuilt features. The predefined features and functionalities aren't necessarily tailored to any specific niche or industry but designed to cater to a broad range of users.

They are relatively quick to implement and offer cost savings. Due to the time and features involved in the development of customized solutions, however, they generally come at a higher initial cost but pay dividends long-term.

They provide long-term cost savings because the initial customizations offer comprehensive solutions. Due to their flexibility and adaptability, features and functionalities in customized solutions can be added or tweaked to meet the evolving needs of the organization.

How to Implement a Vendor Portal?

From when you start considering a vendor portal type until when the final product is ready for use, here are a few things to consider.

1. Choose the Right Vendor Portal for Your Organization

No doubt the above-described portal types have helped with an understanding of the different vendor portal options available. Selecting the right option in terms of budget and true needs goes beyond understanding features and functionalities.

As such, here are—in no particular order—some practical considerations to get things right as best as you can.

• Involve in the conversation your chief procurement officer (CPO) or those in charge of sourcing, procurement, and supply management. Those handling this aspect of your establishment generally have a wealth of experience regarding procurement bottlenecks.
• Use identified needs to draft a list of features you’d like to see in a vendor portal for your organization. All identified features should focus on streamlining procurement processes. Try to do without the bells and whistles as much as possible to save on costs.
• Reach out to as many vendor portal developers as possible. You may not have to do as much research if you're working with referrals or recommendations.

2. Discuss Key Considerations

During your initial consultation with a product developer, do not forget to make clear what you think the most important factors, elements, features, and aspects of the vendor management portal you desire are.

Key considerations include security features, compliance measures, intuitive design, flexibility, scalability, and many other important elements of the portal you envision.

Let them bring to the conversation their experiences and expertise, as those can help give shape to your needs and requirements.

3. Integration With Existing Systems and Workflows

Integration capability is also part of key considerations but requires a section of its own due to how crucial it is in the grand scheme of things.

The presence or absence of an integration module could make or break a vendor management portal.

Say your organization or business already has CRM or ERP software. Not integrating the supplier portal with the existing system essentially means you’re creating the same inefficiencies the procurement platform is designed to solve.

It's important to always remember the goal is to have a platform for procurement that can seamlessly pull data from or feed data to other apps or web services your business already uses.

4. Best Practices for Onboarding Suppliers To The Portal

Once a procurement portal solution has been completely developed, now it's time to let existing vendors and new suppliers know about the new platform. This is now the platform through which to get the buying projects done.

That said, here are some best practices for a smooth and successful onboarding experience:

• Communicate clearly. Let all your suppliers know about the portal, its benefits, and how they can register and use it. You can add a knowledge base or video guides to a section of the platform to handle this aspect. You may want to phase the onboarding process and instruction into stages so you don’t overwhelm users with too much information at once.
• Request necessary documents including business registration, insurance certificates, and tax identification. Make sure to verify the correctness and authenticity of the provided information.
• Apart from training to help vendors navigate the portal, have a dedicated support team to assist vendors with complex onboarding and navigation issues.
• Ensure the portal is accessible on mobile. Nowadays, almost everyone carries a mobile device around, not a laptop or desktop computer. Mobile accessibility gives suppliers the flexibility to communicate and update your business or organization at any time and from anywhere.

Top 3 Vendor (Supplier) Portal Solutions

Now let's see some portal solutions examples that you can use depending on your needs and requirements.

1. Clinked for Customized, Standalone Solution

Clinked is a cloud-based portal solution for handling business-to-client collaboration and project management. The portal solution is used by businesses of different sizes and in different industries, including IT, law firms, healthcare centers, financial institutions, and many others.

These organizations use Clinked portal infrastructure for client-business operations, standalone procurement platforms, and many more, thanks to its adaptability and flexibility.

Apart from its capability for customizations, Clinked can be deployed as an out-of-the-box solution since it comes prebuilt with features such as task management, secure file transfer, robust communication and messaging module, and invoicing to meet the procurement aspect of most businesses.

Reach out to the team at Clinked for a product demo to see if its ready-made solution is the right fit for your procurement platform's needs. For establishments needing industry-specific vendor portals, Clinked can add new features, tweak existing functionalities, and line things up properly to support the important procurement workflows of any business or organization.

Because the team of developers at Clinked has worked on several industry-specific supplier portal projects, it's not a challenge setting up function-specific portals enriched with just the right features and functionalities.

A consultation call with the team may even reveal to you some new key considerations for your procurement platforms that you’ve yet to consider.

Clinked Features

• Customizable vendor portal solution
• White-label solution
• Instant messaging feature and robust notification system to communicate with your suppliers and to receive updates as they happen
• Mobile app for 24/7 connectivity no matter where you or your vendors are
• File sharing to send files/folders with your suppliers and audit trail for visibility when there are changes to shared documents
• E-Signature option to digitally sign sensitive and confidential documents without leaving the portal environment
• Billing and invoicing for efficient payment management with suppliers
• Project management feature to break down procurement tasks into manageable chunks
• Analytics and reporting
• Integrations with many other web services to connect with existing business tools like CRM software so you don’t miss out on any business operation

2. Zoho for Vendor Portal and Contract Management

Zoho Creator's vendor management helps handle vendor relationships, manage contracts with different vendors, and monitor all responsibilities assigned to each vendor.

The platform comes with Vendor, Contracts, and Vendor rating modules with all these built-in systems helping you manage contracts with different suppliers. 

The platform lets you add new vendors based on project type. It also lets you assign employees to act as a point of contact for each or specific vendor.

The inbuilt rating and review feature lets you see which vendors have a proven track record and are deserving of your contracts. You can base your vendor selection on factors such as delivery timing and compliance with terms.

The vendor portal also features an automated notification system so you get alerts about contracts, including expiry deadlines. Zoho claims it can customize the solution to add required functionalities and modules.

Zoho Creator Features

• Out-of-the-box supplier management software with options for customizations
• Automated notification system to keep you informed of contract deadlines
• Prebuilt integrations and APIs for more integrations
• Complementary mobile application
• Vendor rating system

3. SoftCo for Vendor Management

SoftCo markets itself as a vendor lifecycle management solution. The out-of-box supplier portal provides features required for vendor-buyer relationships from supplier onboarding to integration with existing ERP software.

Vendors have the option to submit all required information through the platform where a designated internal team can work on the approval process. This automated data submission eliminates manual data entry.

Also, the platform has pre-qualification measures including automated third-party validation for strict control over risky vendors. This feature might be useful for businesses operating in highly regulated industries.

The provision for audit trail and dashboard features helps enhance visibility, compliance, and traceability.

SoftCo Vendor Management Features

• Premade, out-of-box solution for vendor and contract management
• AI-enabled third-party verification, using information such as Tax, TIN, VAT, and bank details
• Integration into existing business ERP software solution
• Dashboard for visibility, reporting, and analysis for data-driven decision-making
• Invoicing feature

Challenges and Considerations When It Comes to Supplier Portals

Despite the many benefits vendor portals bring to business and organizational procurement processes, it's still very possible to feel the proverbial cold feet as a decision-maker.

As such, here are some potential barriers and considerations to overcoming hesitation.

User Adoption

Some of your suppliers may show a level of resistance to adopting new technologies or changing their existing processes. Addressing their concerns and demonstrating the benefits of using the portal can be helpful.

Security And Compliance Issues

It's natural to have concerns about the capabilities of a vendor portal infrastructure when it comes to the security of important and sensitive business data.

The cost of not securing business information and data is huge. Similarly, failure to adhere to regulatory and governmental requirements can lead to fines and be costly for a business.

Go for a platform with the highest level of data encryption and robust security measures for peace of mind over procurement records, secrets, and other classified data.

Managing Change Within the Organization

Your employees or other members of the team may be reluctant to adopt new technology, especially if there are already several existing business tools.

By providing adequate training and support and communicating the benefits a procurement portal brings to your operations, employees can certainly be encouraged and motivated to adopt and use a vendor management portal.

Cost and Resource Constraints

Depending on the vendor portal type, you may have to invest significantly upfront and cover ongoing maintenance costs.

Customized procurement portals, for example, would typically require high upfront costs compared to out-of-the-box solutions due to the customizations.

Regardless, investing a couple of hundred dollars a month into a procurement management system can provide huge cost and process savings in other areas. For instance, the time your employees spend manually completing paper-based procurement documents can be better spent on other cash-generating tasks.

Technical Difficulties

Especially as your business or organization grows and evolves, performance issues are bound to happen, requiring urgent addressing. It makes sense if issue handling is part of your key consideration before committing to a portal solution.

A solution provider should have as part of its offering an ongoing, consistent, and long-term training program. This helps equip your internal team with ways to handle the technical side of the portal.

When necessary especially in the event of complex technical difficulties or system downtime, the product developer should step in to help.

So make sure to ask during consultations with the portal developer where they stand when it comes to resolving technical difficulties.

Wrapping Up

The importance of vendor portals in modern procurement efforts can not be overemphasized. The market for vendor software is growing and is expected to grow even bigger.

Supplier portals help the procurement team replace manual data entry with automated data transfer over cloud-based solutions, eliminating costly inconsistencies.

Vendor portals also separate the procurement aspect of a business or organization while still maintaining a link to other business processes through integrations.

These and many other benefits discussed in this article can add significant positive changes to how you collaborate with suppliers and complete buying processes.

It’s understandable if you’re hesitant to adopt a procurement portal due to security, costs, and adoption concerns. It’s worth considering the potential benefits of a vendor portal to your procurement efforts and other areas of your business though.

As a reminder, a standalone vendors portal would generally be fine for your procurement needs particularly if the solution supports integration with CRM software or ERP solution. 

If you can't find any or a suitable industry-themed procurement portal (considering your organizational needs), contracting an experienced developer for a customized solution should get you a portal with all the right configurations.

Keep in mind that Clinked vendor portals are flexible and adaptable to accommodate various needs. Clinked portal can be deployed right away as an out-of-the-box solution or customized to meet your industry-specific needs.

For a product demonstration or a quick consultation call, contact the team at Clinked. A customer care representative will be happy to provide help or assistance so your Clinked-built procurement portal can go live as soon as possible.