Vendor Database Management is the process of identifying and managing vendors who supply goods and services to a business. It involves the creation of a database to track the vendors, the goods and services they supply, the cost of these items, and any discounts offered. This helps businesses manage their finances more effectively, as it allows them to compare vendor performance and choose the provider that offers the best value. Vendor Database Management also ensures compliance with contractual requirements and regulatory requirements, while helping to reduce costs and minimize risk.