Vendor Management

Effective vendor management is crucial for maintaining reliable supply chains and controlling costs. This guide covers comprehensive vendor management in Angage ERP.

Understanding Vendor Management

Vendor Types

Product Suppliers

• Raw material vendors
• Component suppliers
• Finished goods suppliers
• Equipment vendors

Service Providers

• Professional services
• Maintenance contractors
• Logistics providers
• Consultants

Hybrid Vendors

• Product + installation
• Equipment + maintenance
• Software + support
• Materials + services

Setting Up Vendors

Creating New Vendors

1. Navigate to Purchase → Vendors
2. Click New Vendor
3. Enter basic information:
   • Vendor Name (legal entity)
   • Display Name (short name)
   • Vendor Code (auto-generated)
   • Tax ID/Registration
   • Currency

Vendor Information Structure

General Information

• Legal name and trade name
• Registration numbers
• Industry classification
• Company size
• Years in business

Contact Management

• Primary contacts
• Department contacts
• Escalation contacts
• Emergency contacts
• Portal users

Financial Details

• Payment terms
• Banking information
• Credit limits
• Tax settings
• Currency preferences

Operational Settings

• Lead times
• Minimum order values
• Delivery schedules
• Quality requirements
• Service levels

How-To Guides

How to Qualify New Vendors

Initial Screening

1. Create vendor record as "Prospective"
2. Collect required documents:
   • Business registration
   • Tax certificates
   • Insurance policies
   • Bank references
   • Quality certifications
3. Run background checks:
   • Credit verification
   • Reference checks
   • Site visits
   • Sample evaluation

Approval Process

1. Submit for approval
2. Review by:
   • Procurement team
   • Quality assurance
   • Finance/Legal
   • Management
3. Set vendor status:
   • Approved
   • Conditional
   • Rejected

How to Manage Vendor Contracts

Contract Creation

1. Go to vendor record
2. Click Contracts tab
3. Create new contract:
   • Contract type
   • Effective dates
   • Terms and conditions
   • Pricing agreements
   • Volume commitments
4. Attach documents
5. Set renewal alerts

Price Agreements

Configure pricing:

• Fixed prices by period
• Volume-based tiers
• Index-linked pricing
• Promotional rates
• Blanket order rates

How to Set Up Vendor Catalogs

1. Navigate to vendor record
2. Go to Products tab
3. Import catalog:
   • Upload CSV/Excel
   • Map fields
   • Validate data
4. For each product:
   • Vendor SKU
   • Description
   • Unit price
   • Lead time
   • MOQ
5. Enable for ordering

How to Configure Approval Hierarchies

For different vendor categories:

1. Go to Settings → Purchase Approvals
2. Create approval matrix:
   • New vendor approval
   • Contract approval
   • PO approval limits
   • Payment approval
3. Set escalation rules
4. Define delegates

How to Track Vendor Performance

Key Metrics Setup

1. Configure KPIs:

   • On-time delivery
   • Quality rating
   • Price competitiveness
   • Response time
   • Issue resolution

2. Set targets:

   • Minimum acceptable
   • Target performance
   • Excellent threshold

3. Configure scoring:

   • Weighted average
   • Category importance
   • Overall rating

Performance Reviews

1. Schedule periodic reviews
2. Generate scorecards
3. Identify issues:
   • Late deliveries
   • Quality problems
   • Price increases
   • Service failures
4. Create action plans
5. Track improvements

How to Manage Vendor Communications

Portal Access

1. Enable vendor portal
2. Set permissions:
   • View POs
   • Update shipments
   • Submit invoices
   • View payments
   • RFQ participation
3. Send credentials
4. Track usage

Automated Notifications

Configure alerts for:

• PO confirmation requests
• Shipment updates
• Payment notifications
• Contract renewals
• Performance reviews

Advanced Features

Vendor Categorization

Category Management

Organize vendors by:

• Product/service type
• Criticality level
• Spend volume
• Geographic location
• Certification status

Strategic Classification

• Strategic Partners: Critical suppliers
• Preferred Vendors: Regular suppliers
• Approved Vendors: Qualified suppliers
• Prospective: Under evaluation
• Inactive: No current business

Risk Management

Risk Assessment

Evaluate vendors for:

• Financial stability
• Operational capacity
• Geographic risks
• Compliance status
• Dependency level

Mitigation Strategies

• Dual sourcing
• Safety stock
• Alternative vendors
• Contract protection
• Insurance requirements

Vendor Development

Improvement Programs

• Performance coaching
• Capability building
• Quality programs
• Technology adoption
• Process optimization

Collaboration Tools

• Forecast sharing
• Inventory visibility
• Joint planning
• Innovation projects
• Cost reduction initiatives

Best Practices

Vendor Selection

• Define clear criteria
• Use competitive bidding
• Check references thoroughly
• Validate capabilities
• Document decisions

Relationship Management

• Regular communication
• Performance feedback
• Recognition programs
• Issue resolution
• Strategic reviews

Compliance & Control

• Maintain documentation
• Regular audits
• Contract compliance
• Spend analysis
• Policy enforcement

Continuous Improvement

• Performance monitoring
• Benchmark analysis
• Process optimization
• Technology adoption
• Training programs

Configuration

Vendor Settings

Navigate to Settings → Purchase → Vendors:

• Numbering Format: VEN-00001
• Approval Required: Yes/No
• Portal Enabled: Yes/No
• Default Terms: Payment days
• Document Requirements: Mandatory files

Integration Options

Configure connections:

• EDI setup
• API access
• Catalog sync
• Document exchange
• Payment systems

Reports & Analytics

Standard Reports

• Vendor spend analysis
• Performance scorecards
• Contract compliance
• Payment history
• Issue tracking

Dashboards

• Vendor overview
• Spend by category
• Performance trends
• Risk indicators
• Compliance status

Troubleshooting

Common Issues

Cannot create vendor

• Check required fields
• Verify unique tax ID
• Review approval settings
• Check user permissions

Portal access not working

• Verify portal enabled
• Check credentials
• Review permissions
• Test connectivity

Performance metrics missing

• Check calculation settings
• Verify data sources
• Review period settings
• Update configurations

Contract alerts not firing

• Check alert settings
• Verify dates
• Review notification rules
• Test email configuration

Next Steps

Learn about Purchase Requisitions to start the procurement process.