Supplier management software, also known as supplier relationship management software, is a procurement tool that focuses primarily on optimizing supplier relationships in an organization to make the most out of them.

Key features of an ideal supplier management software include supplier information management, onboarding and qualification, risk management, performance monitoring, compliance tracker, and contract management, along with analytics and collaboration capabilities.

Although most people use VMS and SRM synonymously, they’re pretty different from each other. The primary goal of a supplier relationship management software is to optimize the value received from suppliers by fostering collaborative relationships, while a VMS just focuses on managing an organization’s vendors.