Building a Future-Proof Vendor Management Strategy: People, Process, and Platform
Discover the people, processes, and platforms
by Ashley Poynter
Content Manager
PaymentWorksBuilding a Future-Proof Vendor Management Strategy: People, Process, and Platform
Table of Contents
Why You Need a Future-Proof Vendor Management Strategy
People: Your First Line of Defense and Opportunity
Process: Creating Repeatable, Risk-Aware Workflows
Platform: Leveraging Technology to Scale and Secure
A Future-Proof Vendor Management Strategy Needs All Three
Get Ready for Vendor Management Day 2025
Want Help Aligning Teams On a Future-Proof Vendor Management Strategy?
Interested in More Tips On a Future-Proof Vendor Management Strategy?
Want Personalized Guidance On a Future-Proof Vendor Management Strategy?
Why You Need a Future-Proof Vendor Management Strategy
Vendor management has grown far beyond just issuing payments or updating contact details. Today, it touches risk management, cybersecurity, regulatory compliance, and operational efficiency. A modern vendor management strategy must be able to adapt quickly to new threats, technologies, and expectations.
What Does “Future-Proof” Really Mean?
To “future-proof” your vendor management efforts means creating a system that can withstand evolving risks and adapt to new requirements without needing to be constantly rebuilt. It’s about putting the right foundation in place now so your organization isn’t caught flat-footed tomorrow.
A future-proof vendor management strategy is not about chasing every new software trend. It’s about establishing consistent, compliant, and risk-aware practices that are supported by the right people and technologies.
People: Your First Line of Defense and Opportunity
Often overlooked in the rush to implement systems and workflows, people are the most critical component of any vendor management strategy. Technology can enhance your work, but it’s your team that makes it effective. Or vulnerable.
Empowering the right stakeholders
Vendor onboarding and management typically span several departments: procurement, accounts payable, compliance, IT, and legal. One of the most common pain points in organizations is unclear ownership. Who’s responsible for verifying bank accounts? Who checks tax ID validity? When those lines blur, gaps emerge. And with gaps come risk.
A future-proof strategy starts with assigning clear roles and responsibilities across the vendor lifecycle. Aligning cross-functional stakeholders creates a stronger risk posture and reduces friction in day-to-day operations. More importantly, you need to document these roles and responsibilities, as Chris Arehart of Chubb points out below:Â
Building a culture of risk awareness
No matter how strong your processes or platform may be, human error remains a significant risk. Social engineering attacks, phishing scams, and invoice fraud schemes all depend on a lapse in human judgment.
That’s why regular training and awareness programs are crucial. Teams should understand not just how to follow a workflow, but why each step matters. Grounding staff in the risks associated with vendor onboarding and maintenance empowers them to spot anomalies and escalate them appropriately.
Improving internal communication
In most organizations, vendor management involves multiple handoffs between departments. Without centralized communication and shared visibility, those handoffs become black holes.
Establishing shared communication channels and dashboards helps ensure everyone is working from the same playbook. It also builds trust across departments and reduces duplication of effort.
Treating vendors as partners
Lastly, don’t forget the vendors themselves. The onboarding process sets the tone for your entire business relationship. Delays, redundant paperwork, and unclear communication can create friction, or worse, damage your reputation.
Streamlining the experience and setting clear expectations enables you to build long-term partnerships based on trust and transparency.
Process: Creating Repeatable, Risk-Aware Workflows
Once the right people are aligned, the next pillar in a future-proof vendor management strategy is process. This is where you define the “how” of your operations: how data is collected, validated, approved, and maintained.
Auditing your current workflow
Start by understanding your existing process. Where are the bottlenecks? Are there any redundant steps? Which parts are manual, and which are automated? Most importantly, where is the risk hiding?
Conducting a full audit of your vendor onboarding and maintenance workflow can help uncover blind spots that may not be apparent in day-to-day operations.
Designing for standardization and consistency
Every vendor should go through the same set of checks, regardless of size or frequency of engagement. Standardizing your process reduces confusion and errors and supports compliance.
Consistent workflows also make it easier to train staff, monitor performance, and apply updates when regulations or business needs change.
Integrating risk controls
A major component of a future-proof vendor management strategy is embedding risk controls directly into the process. This includes steps like:
- Verifying tax identification numbers (TINs)
- Validating bank account ownership
- Checking vendors against OFAC and other restricted lists
- Enforcing approval hierarchies before any sensitive data is entered
Embedding these checks into your workflow, rather than treating them as add-ons, means you reduce the chance of critical steps being skipped. Ben Lao, Head of Procurement, Ryan LLC, frames the importance of this in the video below:Â
Supporting regulatory compliance
Organizations today face growing regulatory scrutiny around vendor relationships. Whether it’s IRS requirements, financial auditing standards, or data protection laws, compliance must be a core function of your workflow and not an afterthought.
Documenting every step in your process, keeping detailed logs, and maintaining centralized records makes audits far easier—and positions you as a well-governed organization.
Continuous improvement
Even the best processes need regular tuning. A future-proof vendor management strategy includes ongoing reviews of your workflows to ensure they’re still serving your needs. Track metrics like cycle times, error rates, and compliance findings, and use that data to drive improvement.
Platform: Leveraging Technology to Scale and Secure
With people and processes in place, the final piece is technology: the platform that supports and automates your vendor management activities. But technology alone won’t future-proof your strategy. It has to be the right platform, aligned with your goals.
Automation and security
The best platforms reduce manual data entry, eliminate unsecured email-based information sharing, and automatically flag inconsistencies or risks. They allow your team to focus on exceptions, not routine tasks.
Security is especially critical. A platform should encrypt sensitive data, enforce access controls, and create immutable logs of all activity.
Scalability and integration
As your organization grows, so too will the volume and complexity of vendor relationships. Your platform must be able to scale without breaking—and it should integrate seamlessly with your existing ERP or financial systems.
Avoid tools that require heavy customization or complex workarounds. Look for solutions that are flexible, interoperable, and built with vendor lifecycle management in mind.
Audit trails and visibility
Auditability is essential for compliance and trust. A future-proof vendor management strategy depends on platforms that provide complete, searchable records of every vendor interaction, change, and approval.
When audits arise (or when issues emerge) this visibility allows you to respond quickly and confidently.
Vendor experience
While much of your platform will serve internal stakeholders, don’t overlook the vendor side of the experience. Frustrating portals, unclear instructions, and duplicate data entry can delay onboarding and lead to vendor dissatisfaction.
An effective platform streamlines the vendor experience, making it intuitive, transparent, and mobile-friendly where possible.
A Future-Proof Vendor Management Strategy Needs All Three
Building a future-proof vendor management strategy isn’t about choosing between people, process, or platform—it’s about ensuring they all work in harmony.
People bring judgment, collaboration, and vigilance.
Processes bring structure, consistency, and accountability.
Platforms bring scale, speed, and security.
Together, they form a strategy that’s prepared for the challenges of today and ready for what comes next.
Organizations that embrace this holistic approach reduce risk and build stronger relationships with their vendors. More importantly, they position themselves to adapt, whether the next challenge is regulatory, technological, or entirely unforeseen.
In the end, a future-proof vendor management strategy is less about predicting the future and more about preparing for it. So prepare for it with the right mindset, the right framework, and the right tools in place.
Get Ready For Vendor Management Appreciation 2025
The Vendor Management Appreciation Day (#VMAD) celebration continues in 2025! And you should join us.Â
Why? Because there’s no expiration date on honoring one of the most important, under-recognized roles across industries: vendor management.
Join us in observing Vendor Management Appreciation Day (VMAD)! We’re gearing up for the 2025 celebration, and we want you to be a part of it!
VMAD is a new holiday geared toward unifying vendor management professionals and celebrating innovation in the field.
Moreover, we’ve released gifts each month to help you supercharge your vendor management efforts. Additionally, we’re planning some awesome events so everyone can connect and celebrate the important, strategic role of vendor management.
In the meantime, learn more here, and grab some free vendor management goodies.
Want Help Aligning Teams On a Future-Proof Vendor Management Strategy?
Explore our blogs below. They’re filled with action items you can implement right away.
Nacha’s Upcoming Rule Change: What You Need to Know
The Case for Automating Third-Party Risk Management: Costs, Risks, and ROI
Cleaning Up Vendor Information Management for 2025
Vendor Verification: How NOT to Do it and What to Do Instead
Interested in More Tips On a Future-Proof Vendor Management Strategy?
Want Personalized Guidance On a Future-Proof Vendor Management Strategy?
