The Top 10 Best Vendor Management Software Providers in 2025

Let's be honest—managing vendors can feel like herding cats. That's where vendor management software (VMS) steps in to keep your vendor relationships on track, your compliance in check, and your data at your fingertips.

The role of vendor management software

Think of vendor management software as your procurement team's Swiss Army knife—it tackles everything from sourcing and compliance to analytics and reporting in one handy package.

What a vendor management tool can do for your business

A robust vendor management tool provides:

• Centralized Vendor Information: Consolidates all vendor data in a single platform.

• Performance Tracking: Monitors vendor performance metrics over time.

• Risk Management: Identifies and mitigates potential risks, particularly important as 31% of cyber insurance claims involve third-party risks like ransomware and vendor outages.

• Compliance Management: Ensures vendors meet regulatory and contractual requirements, crucial because businesses must ensure vendor compliance with GDPR regulations to avoid costly penalties.

• ESG & Sustainability: A vendor management software helps track and ensure vendors meet environmental, social, and governance standards, supporting sustainable sourcing initiatives.

• Cost Optimization: Tracks spend, helping businesses achieve cost efficiencies.

Read more about vendor management.

The 10 best vendor management systems for 2025

(Note: This table provides a quick summary. See below for detailed insights.)

Choosing the right VMS provider for your needs

When selecting a vendor management software, consider the specific needs of your business. Factors such as business size, regulatory requirements, and vendor ecosystem significantly influence the selection of the right vendor management solution.

Read more about the Best SRM systems in 2025.

A deep dive into the 10 best vendor management software providers

1. Kodiak Hub

Founded in Stockholm, Sweden, in 2017, Kodiak Hub is a pioneering vendor management software that has quickly gained prominence in the field. With a team rooted in procurement and corporate backgrounds, Kodiak Hub delivers a best-in-class vendor management solution built on a deep understanding of the challenges associated with legacy procurement systems. Recognized as a ProcureTech 100 pioneering digital solution for three consecutive years, Kodiak Hub has positioned itself as a leader in Vendor Relationship Management innovation.

Kodiak Hub's modular platform offers plug-and-play tools that specialize in vendor information management, risk monitoring, and performance analytics, setting it apart from all-in-one procurement suites. The platform facilitates streamlined vendor onboarding, risk assessments, and self-assessment tools, along with robust performance scorecards. Known for its intuitive design, Kodiak Hub’s no-code solution can be deployed within weeks, allowing businesses to quickly benefit from its comprehensive insights and advanced reporting capabilities.

2. Jaggaer

Based in North Carolina, Jaggaer has a longstanding reputation in the field due to its origins as SciQuest, a cloud software pioneer. Jaggaer offers a comprehensive vendor management system that centralizes vendor data and utilizes AI-driven tools to manage risk and identify new opportunities. Its intuitive dashboards and reporting tools simplify data analysis, enabling users to generate performance insights quickly and efficiently.

3. SAP Ariba

SAP Ariba combines the strengths of SAP’s robust ERP platform with Ariba’s supply chain expertise, offering a highly scalable vendor management solution. Focused on Source-to-Pay functionalities, SAP Ariba provides a range of tools for vendor management, strategic sourcing, procurement, and financial supply chain. Its seamless integration within SAP’s ecosystem makes it ideal for organizations looking for an all-in-one solution with extensive B2B network capabilities.

4. Medius

Headquartered in Manchester, Medius originally made a name for itself with its Accounts Payable automation. Now, it has expanded to provide a vendor management solution designed to streamline data collection and vendor performance evaluation. Medius’ centralized platform features a vendor self-service portal, reducing administrative workloads and enhancing data accuracy. The platform also includes tools for validating credentials and generating custom reports, making it a powerful option for companies looking to automate vendor processes.

5. Coupa

Coupa, headquartered in California, is renowned for its holistic approach to spend and vendor management. It features a vendor management solution focused on third-party risk management, offering tools for data collection, benchmarking, and performance reporting. Coupa’s solution emphasizes risk mitigation, with built-in analytics and reporting that provide clear insights into potential vendor risks and cost-saving opportunities.

6. Basware

Basware is a Finnish company headquartered in Espoo, Finland. It was founded in 1985 and is known for its expertise in eInvoicing, Source-to-Pay, and AP automation solutions globally.

7. Zycus

Founded in 1998, Zycus has been a consistent innovator in the vendor management tool field, with a platform powered by the Merlin AI suite. Zycus is notable for its user-friendly, conversational AI interface that facilitates smoother vendor interactions. With tools focused on risk management, cloud-based vendor data storage, and strategic insights, Zycus caters to companies looking to modernize their vendor management processes.

8. Kissflow

Kissflow offers a cloud-based vendor management solution designed for organizations looking to streamline workflows and improve collaboration with vendors. Its SRM capabilities include vendor self-service onboarding, performance monitoring, and risk management. Kissflow’s intuitive interface and automation tools help reduce manual processes and enhance productivity across procurement and supply chain operations.

9. GEP SMART

GEP SMART is a cloud-based platform for managing vendor relationships, spend, and procurement. It offers a range of features, including contract management, vendor onboarding, and performance analytics. GEP SMART’s strength lies in its flexibility and scalability, making it suitable for both mid-sized and large enterprises. It’s designed to enhance visibility into vendor data while providing tools for strategic vendor management and collaboration.

10. Oracle Procurement Cloud

Oracle Procurement Cloud is part of Oracle’s comprehensive cloud suite, offering powerful vendor management tools tailored for global enterprises. Known for its advanced analytics and automation capabilities, Oracle's platform enables organizations to manage vendor contracts, monitor compliance, and analyze performance metrics. Oracle’s solution is ideal for organizations seeking a robust, enterprise-level VMS with extensive integration options.

The vendor management software market landscape & positioning chart

Our positioning chart provides a clear view of how each SRM solution addresses different aspects of supplier relationship management.

Is the solution designed as a niche tool, solving specific points in the supplier lifecycle, or does it offer a broader range of functionalities? Additionally, we examine whether each platform prioritizes Top-Line Value or Bottom-Line Savings for its users.

Top-Line Value solutions emphasize strategies that drive sales growth, focusing on areas like enhancing supplier performance, quality, collaboration, and sustainability. In contrast, Bottom-Line Savings solutions concentrate on cost reduction, helping companies identify savings opportunities, with a lighter focus on collaboration and strategic supplier development.

This positioning chart aims to simplify the decision-making process by showing where each platform excels, so you can find the solution that best aligns with your business goals.

Importance of security measures in vendor management systems

Security in vendor management systems is a critical yet often overlooked aspect of managing third-party relationships. Robust security measures ensure that sensitive business data remains protected and that interactions with external vendors do not introduce vulnerabilities.

Implementing comprehensive technical safeguards—such as data encryption, secure authentication protocols, and stringent access controls—is essential, as 80% of organizations with low visibility into vendor security experienced breaches in the past year. Additionally, vendor management systems should incorporate regular third-party validations, including security audits and compliance checks, to verify that security controls adhere to industry standards.

Integrating these security practices not only protects valuable business data but also ensures compliance with regulatory requirements, reducing risks associated with vendor interactions. Prioritizing security measures in vendor management systems is essential for businesses aiming to safeguard their operations and maintain trust among customers and stakeholders.

Tips to choose the best vendor management software

Assess your business needs

Begin by evaluating the specific needs of your organization. Consider the size and complexity of your vendor network, your industry’s regulatory requirements, and your budget. If your vendor base is extensive and diverse, you may need a vendor management system with robust data management and compliance features, like e.g. Kodiak Hub. Alternatively, if your focus is on streamlining communication with a few key vendors, a simpler solution may suffice.

Prioritize key features

Some offer basic tools for vendor data storage, while others provide advanced features like real-time performance tracking, risk assessment, and compliance monitoring. Identify the features that are critical for your procurement strategy. For example, if risk management is a priority, look for software with built-in risk assessment tools. If sustainability and ESG tracking are essential, ensure that the platform supports monitoring of vendors’ compliance with these standards.

Check for integrations

Your VMS will likely need to interact with other systems in your tech stack, such as ERP, procurement, and financial software. To prevent data silos and streamline workflows, ensure the VMS you choose is compatible with your existing systems.

Consider usability

Nobody wants to wrestle with clunky software that requires a PhD to operate. If your team can't figure it out quickly, they simply won't use it—and your shiny new system becomes expensive digital shelf-ware. Look for a VMS with an accessible, well-designed interface, as effective software usability significantly boosts productivity and adoption. User experience matters, as a platform that’s easy to use will boost productivity, reduce the learning curve, and encourage consistent usage across the organization.

All-in-one or best-of-breed?

S2P and P2P platforms cast a wide net, but here's the reality—when you're treating supplier relationships as the strategic assets they truly are, you need specialized intelligence and tools that go deeper than 'adequate.' That's where dedicated vendor management systems shine, turning supplier data into the kind of actionable insights that drive real business performance.

Frequently asked questions

Is vendor management software suitable for small businesses?

While VMS can benefit organizations of various sizes, it's particularly valuable for mid-to-large enterprises managing complex supplier ecosystems with hundreds or thousands of vendors.

Who uses vendor management software?

Typically, VMS is used by procurement teams, supply chain managers, and finance departments to handle vendor-related processes and data.

What is the difference between vendor management software and procurement software?

Vendor management software focuses specifically on managing vendor relationships, while procurement software encompasses a broader range of functions, including purchasing, invoicing, and order management.

How does vendor management software handle security and compliance issues?

Most VMS platforms include compliance management tools, audit trails, and security features aligned with standards like ISO 27001 for effective vendor risk assessments.

Can I customize a vendor management software to fit my business needs?

Yes, many VMS providers offer customization options, allowing businesses to tailor workflows, reporting, and integrations.

What should I consider when choosing vendor management software?

Consider your business needs, industry’s regulatory requirements, the size of your vendor network, budget, and the specific features your team will use most.

Conclusion

Choosing the right vendor management software is crucial for driving operational efficiency and minimizing risks within your vendor ecosystem. With options like Kodiak Hub and other top-tier providers, you can find a solution that meets your specific needs and elevates your vendor management practices in 2025.