Not all businesses have the same level of complexity in their vendor and supplier management. However, for the ones that routinely procure goods or services from hundreds of different entities, the processes involved can get overwhelming very quickly. Vendor portals offer a solution to that, by streamlining vendor sourcing, vetting, communication, payments, contracts, and more. 

While there are quite a few off-the-shelf options available to them, many teams prefer to build their own vendor portal using a no-code solution like Stacker, rather than buy an existing solution. 

In this blog, we’ll explore what a vendor portal is and how to decide whether to buy or build, with a focus on vendor portals for SaaS, vendor management software, and no-code solutions.

What is a vendor portal?

A vendor portal is an online platform that allows businesses to manage their vendors or suppliers. It offers a central place for tasks like onboarding vendors, managing payments, tracking contracts, and overseeing supplier relationships. 

By using a vendor management portal, businesses can introduce some automation, and reduce the burden of administrative management on their own teams. For example, a secure login portal allows vendors to create their own accounts. They can also update all the information needed to work with them regularly. 

Vendor portals are particularly useful in industries like retail, where operational efficiency has a key impact on the bottom line, or SaaS, where managing multiple third-party services is common.

Vendor portals: Buy or build?

Deciding whether to buy an off-the-shelf vendor portal or build one using a no-code platform depends on your business’s needs, processes, and long-term goals. Both approaches have distinct advantages depending on how you manage vendor relationships. 

Buying off-the-shelf: When it makes sense

Opting for an off-the-shelf vendor portal is usually a great choice for businesses that have standardized needs and want a reliable, fast-to-deploy solution. 

Standardized industry needs

If your industry follows well-defined, standard practices and your internal operations align with these norms, an off-the-shelf solution can be a perfect fit. 

Additional functionality requirements

Off-the-shelf vendor portals for specific industries often come bundled with features beyond vendor management. For example, they might include document management or vendor payment. 

A mid-sized event management firm might need to manage vendor communications, but also planning logistics or client invoicing. In this case, the procurement team could instead choose an event management ERP solution that covers both functionalities to some extent.

Adopting established methodologies

Many off-the-shelf solutions are built in alignment with the most common vendor management methodologies and best practices. If you’re open to adjusting your processes to fit a structured approach, this can save time. 

For instance, a house renovation company might adopt a vendor portal that follows a standard workflow for managing construction contractors, suppliers, and service providers, making it easier to coordinate projects.

Building with No-Code: When it’s the right fit

For businesses with unique requirements or that want a more adaptable system, building a vendor portal with a no-code platform offers flexibility and customization. This is particularly valuable for businesses whose needs are constantly evolving or that want a tailored solution.

Unique business processes

If your business doesn’t follow a standard workflow or has sophisticated requirements, building a vendor portal with no-code is ideal. 

Take the example of a cosmetics subscription box retailer that works with multiple beauty product suppliers. Such a company might need a stringent vetting process with multiple document submission, review, and reference steps. A ready-made vendor management system might not allow for such a customized vetting process.

Need for scalability

If your vendor management processes are expected to evolve, no-code solutions provide the flexibility to scale and adapt. 

For example, a growing food and beverage company might initially need a portal to track ingredient suppliers. However, it might later want to expand the system to manage delivery partners, equipment vendors, and regulatory compliance as their operations scale up.

Desire for broader use cases

No-code platforms allow businesses to iterate and adapt easily, even as their use cases change and evolve. 

For instance, a construction firm might begin by building a vendor portal to manage communication and payments with subcontractors. Over time, they could extend the system to include features where vendors can offer additional services directly to other business partners or integrate with project management tools.

Lower ongoing costs 

Off-the-shelf solutions often come with higher ongoing costs, especially for features like advanced reporting or adding more users. These solutions usually charge more for bundles of features as well as users, which can add up as your business grows. 

In contrast, no-code platforms tend to have more straightforward pricing, typically based on how many people in your internal team will use the system. This can make no-code more affordable in the long run, especially if you need a lot of users or want to avoid paying for features you don’t need.

Building a custom vendor portal with no-code might take more time and effort at the start, and you might need to properly plan for the switch to a new vendor management tool, but it can save you money over time. Once you’ve built the system, you can keep adapting and expanding it without extra fees, which makes it a great option if your vendor management needs are complex or expected to grow.

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Deciding whether to buy or build a vendor portal depends on your business’s unique needs. If you require a quick and standardized solution, buying a vendor management portal may be the best option. 

However, if customization, flexibility, and cost control are priorities, building your own vendor app using a no-code business app builder like Stacker could be a smart investment. Either way, a well-implemented vendor portal can significantly improve your vendor relationship management and streamline your operations.

If you want to give Stacker a try, or explore how it can help you build a vendor portal, book a demo with our team.