A vendor portal is an online platform where suppliers interact with a company’s procurement and finance teams. Also known as a supplier hub, having one can help your company streamline tasks like order management, invoice submission, and payment tracking.
By centralizing communication, a vendor portal is designed to enhance efficiency, improve transparency, and reduce manual errors, fostering strong supplier relationships and accelerating the payment process.
What is a Vendor Portal?
A vendor portal is an online interface that enables suppliers to engage directly with a company’s procurement and finance systems. It may offer a number of functionalities designed to streamline interactions for both parties, including invoice submission, payment tracking, and document management.
Depending on the company’s unique vendor portal, suppliers may be able to submit invoices electronically, reducing paperwork and processing time. They may also be able to track the status of payments, review order history, and access documents like purchase orders and contracts in a centralized location.
With these capabilities, supplier hubs empower vendors with a self-service option, offering visibility into transaction details without the need for repeated back-and-forth communication with the company. This saves your procurement and accounts payable (AP) teams valuable time, as they’ll likely field fewer supplier inquiries as a result.
Is There a Difference Between a Supplier Hub and a Vendor Portal?
No, there isn’t a formalized difference between a supplier hub and a vendor portal. The terms “supplier hub” and “vendor portal” are often used interchangeably. The name depends on the company’s preference.
Benefits of a Vendor Portal
A vendor portal can deliver many business benefits, particularly when it comes to vendor relationship management, streamlining AP processes, and enhancing overall operational efficiency. Following are some noteworthy potential advantages.
Reduced Administrative Burden: A vendor portal can help free AP teams from repetitive tasks like addressing payment status inquiries. Fewer hours spent on tasks like these can translate to lower labor costs and the ability for team members to focus on higher-value work.
Enhanced Visibility and Transparency: Supplier hubs can give vendors self-service visibility into the status of invoices, purchase orders, and payments, helping to foster trust and transparency, which helps fortify vendor relationships.
Streamlined Invoice Processing: When integrated with an automated AP platform, vendors can submit invoices electronically, helping businesses reduce the time spent manually entering data and decreasing the likelihood of input errors.
Improved Payment Timelines: With more efficient AP processing, companies may be able to maintain a more consistent payment cycle, which can strengthen vendor relationships and potentially lead to better contract terms or opportunities for early payment discounts.
Automated Workflow and Compliance: Some vendor portals offer built-in workflow automation for approvals and compliance checks, requiring that all necessary documentation is provided and procedures are followed throughout the procurement process. This potentially reduces risks associated with manual processing, which leaves room for non-compliance.
Data-Driven Insights and Reporting: When offered as part of a complete procure-to-pay solution, a supplier hub can help companies gather data on spending, vendor performance, and payment cycles, enabling more informed decisions and better management of cash flow and supplier relationships.
The Importance of Vendor Portals
An EY report notes that companies have various motivations for implementing vendor portals, including “risk and controls, vendor management, and the optimization of working capital.” The same report acknowledges that many businesses are in the midst of digitally transforming their accounting systems, including modernizing the procure-to-pay process.
AvidXchange’s 2025 Trends Survey underscores this, with 64% of finance leaders stating they would consider adopting payment automation software or switching providers to gain access to a supplier hub. Notably, 77% of survey respondents said that supplier collaboration is part of their business strategy, emphasizing the value vendor relationship management can bring to organizations.
Many businesses understand that supplier hubs can drive strategic value by helping to reduce operational costs through improved efficiency. They can also enhance vendor relationships through transparency, creating opportunities for better payment terms and discounts. This can directly impact the bottom line, supporting scalable, cost-effective AP operations.
Does Your Business Need a Vendor Portal?
Consider these ideas when deciding whether a supplier hub is right for your organization.
Workload: Does your AP team spend significant time answering vendor questions about payment status, invoice receipt, or errors? A vendor portal can reduce this burden by providing suppliers self-service access to this information.
Manual Processes: Do your AP processes rely heavily on emails, phone calls, or paper-based workflows? A supplier hub can centralize and streamline these communications, giving employees and vendors alike visibility into invoice and payment status via the Internet.
Invoice Volume: If your company processes a large number of invoices, a portal can simplify submission and tracking for suppliers, reducing errors, delays, and status inquiries.
System Compatibility: Is your current AP system capable of integrating with a vendor portal? A smooth integration supports data consistency and reduces implementation friction. If you’re considering automating your AP, some platforms may offer a vendor portal and full-service onboarding of your suppliers.
Future Growth: If your company is growing or expects to onboard more vendors, a supplier hub can scale with your business needs and help your AP team handle increased payment volume without adding headcount.
Return on Investment (ROI): Calculate the potential ROI of implementing a vendor portal and decide if it’s worth the expenditure. This can encompass potential cost savings (including savings from reduced manual labor and fewer late payment fees), efficiency gains, and improved supplier satisfaction.
Decide whether your company has the resources to build a supplier hub in-house or if an outsourced solution will work best. Some AP automation platforms like AvidXchange offer a built-in supplier hub and dedicated support resources.
Final Thoughts on Supplier Hubs
Implementing a vendor portal is a strategic move that helps streamline AP processes, foster stronger supplier relationships, and enhance operational efficiency. By reducing manual tasks, improving transparency, and enabling scalability, businesses can optimize costs, leverage better payment terms, and drive bottom-line growth.
As organizations increasingly prioritize digital transformation, a vendor portal offers a forward-thinking solution that can simplify procurement and payment workflows while empowering finance teams to focus on higher-value initiatives, ultimately supporting long-term success.