Higher Education Vendor Management Platforms Save Colleges Time and Money- PaymentWorks

by Ashley Poynter

Content Manager

How Higher Education Vendor Management Platforms Save Colleges Time and Money During Vendor Onboarding

Let’s face it: vendor onboarding in higher education is often a nightmare. Between the decentralized departments, mountains of paperwork, and the ever-present risk of a typo sending money into the void, it’s no wonder colleges and universities struggle with this process. But here’s the good news: it doesn’t have to be this way.

Vendor management platforms tailored to higher education offer a smarter, more efficient way to onboard vendors—saving time, cutting costs, and reducing risks. Through the experiences of Stephen F. Austin State University, Texas State University, and insights from industry experts, let’s explore how these platforms can transform onboarding from a headache into a streamlined, strategic process.

The Hidden Burden of Manual Vendor Management and Onboarding

The Cost of Manual Processes

Automation: A Game-Changer for Vendor Onboarding

Cost Savings Through Centralized Processes

Fraud Prevention and Risk Mitigation

Strategic Value of Higher Education Vendor Management Platforms

The Future of Vendor Onboarding

Get Ready for Vendor Management Day 2025

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The Hidden Burden of Manual Vendor Management and Onboarding

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Vendor onboarding might not be glamorous, but it’s absolutely essential—and for too long, it’s been treated like the office chore nobody wants to claim. Angela Sarno, Vice President of Marketing at PaymentWorks, sums it up perfectly:

“I just think this particular piece of the puzzle for finance and procurement organizations is often totally overlooked and thought of as a clerical thing rather than something that can actually bring value on a strategic level to an organization” (FASBO).

This misconception often leads to inefficient and fragmented processes, creating bottlenecks that drain resources.

At Stephen F. Austin State University, manual vendor onboarding consumed significant time and energy. Brittney Goad, Disbursement Manager at SFA, recalls her early experience with vendor setups:

“Day one at my job, I got all these W9s and I was told to set them up, so I’m like, ‘Okay.’ Then, day one is over, it’s five o’clock, so I just spent my whole day setting up these vendors, which is like, there has to be a better way.”

Similarly, at Texas State University, Dan Alden, Director of Procurement, encountered similar inefficiencies:

“Everything was being handled with paper forms. Everything was human intervention… We were doing what we could to try to confirm [payee identity] data, but we were very limited.”

These anecdotes highlight how manual processes not only waste valuable time but also increase the risk of errors, non-compliance, and fraud. The problem is clear: manual onboarding isn’t just tedious—it’s inefficient, prone to errors, and creates bottlenecks that frustrate everyone involved.

Manual vendor onboarding may feel like “just the way things are,” but its inefficiencies cost time, money, and peace of mind. There has to be a better way—and spoiler alert, there is.

The Cost of Manual Processes

Manual onboarding isn’t cheap, even if it seems like it at first glance. Those endless hours of data entry and back-and-forth emails? They add up. And the risks? They’re even costlier. Brittney Goad captures the frustration of dealing with unreliable workflows:

“You can be sending money that I have no idea how I’m actually sending it based on what… There’s typos, too. There’s no way for me to validate that information.”

This inefficiency creates friction across departments. For instance, delays in vendor onboarding impact procurement and finance teams, creating a backlog that frustrates internal stakeholders. Sarno identifies this common pain point:

“There’s the organizational friction: Who’s doing what? Are people doing things twice? Did it actually get done?”

Moreover, the lack of reliable data undermines the entire financial ecosystem of the institution. Sarno continues:

“All of those fancy things you’ve invested in to do all that work for you are relying on data that you’re collecting on pieces of paper or PDFs.”

And it’s not just about workflow headaches. When the data behind your financial processes comes from PDFs or handwritten forms, the risks of compliance issues and fraud skyrocket.

Manual processes might seem like the “cheaper” option, but they’re costing your institution more than you think—in time, resources, and potential financial risks.

Automation: A Game-Changer for Vendor Onboarding

Here’s where the plot twists (in a good way). Vendor management platforms bring automation into the picture, tackling tedious tasks—like data collection and verification—so your staff can focus on more important things. Think of it as the assistant you always wished you had.

Stephen F. Austin State University saw a major shift when they embraced automation. Goad explains:

“I needed to find a solution to secure vendor information and improve efficiencies, and improve the time that I spent on vendor setups… I had to make sure that I had some sort of return on investment for my institution.”

The results were transformative. By automating vendor verification and reducing manual data entry, SFA achieved significant time savings. Goad adds:

“Now, my AP team has strategic initiatives. We’re able to focus on other things and not have to worry about the vendor onboarding process.”

Texas State experienced similar benefits. Alden highlights how automation alleviated bottlenecks:

“We were very heavily paper-based, […] and we were looking for a way to… get everything automated and off paper.”

Automation transforms vendor onboarding from a resource drain into a strategic win, giving your team time to focus on what really matters—like making your institution better for everyone.

Cost Savings Through Centralized Processes

Automated platforms also address the fragmented nature of vendor management in higher education. Decentralized systems often lead to inconsistent practices and redundant work. Goad emphasizes how centralizing onboarding improved efficiency at SFA:

“Our accounts payable office was separate from our procurement office, and so you have your procurement team saying one thing and then you have your accounts payable people saying another thing… This was one of the ways that I thought with the procurement director that we needed to collaborate.”

At Texas State, Alden noted that shifting from paper-based forms to an automated platform not only saved time but also reduced financial risks:

“When bank account information is updated in your system by request of the payee, there’s no way to verify that the requestor is, in fact, the vendor. Automation solves that problem.”

Fraud Prevention and Risk Mitigation

Fraud is a growing concern in higher education, and manual onboarding processes often leave institutions vulnerable. Vendor impersonation and phishing scams are common threats, with significant financial and reputational consequences. Sarno underscores the importance of robust fraud prevention measures:

“We can’t ever talk about vendor management without having a brief stop to talk about the scams.”

Automated platforms incorporate fraud prevention tools such as bank account verification and real-time risk assessments. Goad explains how this has improved security at SFA:

“Any new information that [vendors] put out on their PaymentWorks profile goes back to your verification screening, and so there they go checking that direct deposit information again.”

These measures reduce the likelihood of payment fraud, ensuring that funds are directed to the correct recipients. Automation isn’t just about saving time—it’s about protecting your institution’s finances and reputation by making fraud prevention a top priority.

Strategic Value of Higher Education Vendor Management Platforms

The world of vendor management doesn’t stand still. Fraud tactics evolve, regulations shift, and new tools emerge. Staying ahead means committing to continuous improvement.

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Here’s the thing: vendor management platforms aren’t just tools. They’re enablers of change. By automating the grunt work, they empower procurement and accounts payable teams to think bigger and tackle initiatives that add real value to the institution.

Sarno reflects on the broader impact of automation:

“The value I’m trying to talk about here is what else it can bring to your organization. And revenue generation is definitely a big one.”

For institutions like SFA and Texas State, vendor management platforms are more than just tools—they are enablers of organizational change. Goad summarizes the shift in perspective:

“You’ve got to be smarter with what you have. […] I needed to come up with a seamless solution for our institution. I will never go to my leadership and just say, “Hey, we need to get a vendor team. I need two active teams and I need to let them do vendor setups every day. 40 hours a week, I need someone to have a vendor team and verify. I need them to call the company and I need them to verify their direct deposit, verify the legal name, the TIN number. I need to do that.” I just could not go to my leadership and ask for that. I had to make sure that I had some sort of return on investment for my institution, and I’m sorry, but getting two FTE’s was not the answer, so I had to find a solution out there for myself. ”

Vendor management platforms don’t just solve today’s problems—they set your institution up for future success, making onboarding a strategic advantage rather than a necessary evil.

The Future of Vendor Onboarding

As higher education continues to evolve, the importance of efficient and secure vendor onboarding cannot be overstated. Manual processes are no longer viable in a world where institutions face mounting pressure to do more with less. By adopting vendor management platforms, colleges and universities can reduce costs, save time, and protect themselves from fraud—all while improving the experience for vendors and internal stakeholders alike.

The stories of Stephen F. Austin State University and Texas State University serve as powerful examples of what’s possible when institutions invest in automation. With the right tools, higher education can turn vendor onboarding into a strategic advantage, positioning themselves for long-term success.

Get Ready For Vendor Management Appreciation 2025

Yes, we just celebrated our second annual Vendor Management Appreciation Day (VMAD) and YES! The celebration will continue in 2025. Will you join us?

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.