It’s no secret that maximizing operational efficiency and cost effectiveness remains a top priority for commercial real estate (CRE) professionals. Vendor invoice management is a key part of achieving these goals—a strategic process that, if harnessed correctly, can yield significant competitive advantages. It extends beyond mere transactional relationships; it plays a pivotal role in the seamless functioning and profitability of operations.  

In this blog, we’ll answer the question, “What is vendor invoice management?” and explore the technological advancements that help solve its most common set of challenges.  

Vendor invoice challenges 

Despite its importance, vendor invoice management comes with a set of common yet daunting challenges for CRE professionals.  A few examples include: 

• High per-invoice charges from accounting vendors: Accounting vendors at times levy significant per-invoice charges. This additional financial burden can inflate operational costs unexpectedly, particularly when invoice volumes are high.  
• Paying duplicate invoices: The payment of duplicate invoices represents a glaring inefficiency. This redundant financial drain not only wastes resources but also signals a need for more streamlined, error-proof processing methods.  
• Invoice charges above contracted pricing: When invoice charges exceed previously agreed-upon pricing, it undermines contractual adherence and can create significant budgetary discrepancies. Such overcharges necessitate vigilant contract management to ensure invoicing accuracy.  
• Late payment fees & poorly managed vendor relationships: Timely payments are the lifeblood of healthy vendor relationships. Late payment fees and the resultant faltering of vendor goodwill can lead to disrupted services and diminished trust.  

The power of proptech in vendor management: Bids and contracts

Adopting proptech in the vendor management processes within the NNN space ushers in a new era of seamless, streamlined functionality. It revolutionizes ...

Vendor invoice management system 

Today’s most successful CRE properties are solving their vendor invoice challenges by integrating advanced software solutions. Here are two ways technology helps streamline vendor invoice management for properties. 

1. Work order and invoice processing  

Proptech tools prioritize service requests and simplify the approval process, saving time and reducing the risk of errors.  

Benefits:  

• Prioritizes service requests based on pre-defined criteria such as urgency, vendor availability, or cost, ensuring efficient resource allocation  
• Tracks tenant satisfaction on work orders so you know which vendors are doing a good job, allowing you to make better vendor decisions and increase occupant satisfaction  
• Simplifies the approval process with electronic workflows, speeding up operations and reducing manual intervention  
• Ensures work stays within budget by setting a not-to-exceed (NTE) limit  
• Offers better tracking and reporting capabilities to monitor work order statuses and vendor performance 

 2. Accounting integrations  

Seamless integration of vendor management systems with accounting software allows for efficient and accurate financial operations.  

Benefits:  

• Streamlines the payment process by ensuring that all vendor payments are directly tied to respective invoices and work orders within the accounting system, reducing manual entry  
• Mitigates the risk of overpayment or duplicate payments with automated invoice matching 
• Provides a clear audit trail for financial compliance and reporting purposes  
• Enhances financial forecasting with more accurate and accessible vendor payment data  

Simplify vendor management for your NNN properties

Learn how to find the right service provider, get a contract signed, assign work, manage COIs, and pay invoices – all from a single, easy-to-use platform.

What is vendor invoice management to you? 

Envision a world where every invoice aligns perfectly with its contract. 

It’s time to be proactive and not just adapt to change, but to transform. By harnessing proptech solutions, you can architect a new standard for vendor invoice management—one that is marked by precision, efficiency, and resilience.  

Looking ahead, the landscape of CRE operations will be shaped by those willing to lead with innovation. Discover a faster, simpler, more cost-effective way to work with vendors and keep your commercial properties running at their best.

Download our guide and take a free self-assessment to score your vendor management processes.