Vendor Management System Definition

A vendor management system (VMS) is a software application that helps organizations procure and manage contracts with suppliers. A VMS provides a centralized platform for tracking and managing supplier relationships, as well as the performance of those suppliers. It can also help to automate the sourcing and bidding process for new projects.

A VMS typically includes a database of supplier information, such as contact details, financial history, and performance data. This information can be used to identify potential vendors for new projects, and to evaluate the costs and risks associated with working with them. A VMS may also provide tools for creating and managing Request for Proposals (RFPs), Request for Quotations (RFQs), and other documents related to the procurement process.