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Why Spreadsheets Fail at Vendor Management

The hidden risks and operational costs of managing vendors with spreadsheets and email.

July 10, 2024Joshua Owens, COO

The Spreadsheet Trap

Almost every organization starts managing vendors with spreadsheets. It makes sense—spreadsheets are familiar, flexible, and free. But as vendor counts grow and compliance requirements increase, spreadsheets become a liability.

The Failure Modes

Version Control

Which spreadsheet is current? The one in Sarah's email? The shared drive version? The copy on Mike's desktop? When multiple people update the same data in different places, accuracy becomes impossible.

Data Integrity

Spreadsheets don't validate data. Typos in vendor names, inconsistent date formats, expired values that were never updated—errors accumulate invisibly until they cause problems.

Access Control

Who can see vendor banking information? Who can modify insurance dates? Spreadsheets make it difficult to provide appropriate access without creating security risks.

Audit Trail

When an auditor asks "who changed this date and when?"—spreadsheets can't answer. Every modification should be tracked, but spreadsheets only show current state.

Scalability

A spreadsheet might work for 50 vendors. At 500 vendors, it becomes unwieldy. At 5,000 vendors, it's impossible.

The Hidden Costs

Beyond the obvious problems, spreadsheet-based vendor management creates hidden costs:

  • **Staff time**: Manual data entry, duplicate tracking, error correction
  • **Response delays**: Information scattered across files and inboxes
  • **Missed expirations**: No automated alerts means relying on human memory
  • **Audit failures**: Incomplete documentation, missing approval records
  • The Alternative

    Purpose-built vendor management systems address these failures:

  • Single source of truth with version history
  • Validated data entry with required fields
  • Role-based access control
  • Complete audit trails
  • Designed to scale

  • VenLink was built by operators who lived with spreadsheet limitations. We created the system we wished we had. See how it transforms vendor management.

    Ready to Learn More?

    See how VenLink transforms vendor management for industrial operators.