I gave you an insight into various types of invoices in the last three posts. You can access these at

http://faoblog.com/processes-ap-invoice-othertypes/

http://faoblog.com/processes-ap-invoice-othertypes2/

http://faoblog.com/processes-ap-invoice-othertypes3/

I guess that’s a lot on invoice processing basics. Let me move on to the next most outsourced function, “Vendor Management”. This normally comprises of the following subsets.

  • Vendor Maintenance
  • Vendor query handling
  • Vendor Dispute Management

There could be more, but these are prime.

So, what exactly is vendor maintenance? Any organization will have to deal with various vendors and suppliers for material and services. This is a large function for manufacturing and trading companies, as their basics depend on proper procurement. For this, they need to deal with vendors. This is relatively less for service organizations, but never-the-less, it will be necessary for them also to have a bunch of identified vendors or suppliers. Now these processes do not comprise of identifying and short listing vendors, but maintaining them in the client’s ERP system.

As the term suggests, this activity includes setting up of vendors, changing their details, change management. The second and third activity listed above is more of a fallout of the accounts payable processes as there will always be queries and disputes needing solutions. These two components can also relate to the basic information of the vendor or supplier.

Like they say in TV  serials, “To be contd…….”

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