How to manage vendors in Touchless system

There’s a recurring issue we’ve seen in almost every finance team worked with invoices getting held up simply because the vendor isn’t registered in the system. The vendor sends their invoice on time, the work is done, but payment can’t be processed because someone has to chase them down for GST details, bank information, or compliance documents.

It’s not that the process is broken; it’s just manual and far too dependent on people following up over emails and phone calls. Finance teams spend hours each week just tracking down basic vendor info, and Payments are delayed for weeks because onboarding wasn’t completed, and that always comes back to finance, not the vendor.

These aren’t isolated cases. It happens across industries, especially in companies that are growing fast or dealing with a high number of vendors. The workload keeps increasing, but the process doesn’t scale. And when the pressure is on to close books faster or improve working capital, manual vendor onboarding becomes one of the biggest bottlenecks in the entire invoice-to-pay cycle.

There’s a better way to handle this one that doesn’t involve spreadsheets, follow-ups, or last-minute scrambles during month-end.

Let’s talk about touchless vendor onboarding, what it actually looks like when done right, and how it can completely change the way finance and procurement teams operate.

The problem with traditional vendor onboarding

Before we get into what’s broken, let’s talk about what vendor onboarding actually is.

In simple terms, vendor onboarding is the process of collecting and verifying all the information needed to do business with a supplier, things like PAN, GST, MSME certificates, bank account details, and compliance documents. Only after this is done can their invoices be processed and payments released.

Sounds straightforward. But in practice, it's anything but.

Traditionally, the process involves a lot of emails, spreadsheets, and manual follow-ups. A vendor sends an invoice, and that’s when the scramble starts: someone from finance reaches out asking for documents, waits for a response, and then manually enters all that data into the system.

We’ve lived through this cycle, and here’s where things consistently go wrong:

Common Vendor Onboarding Problems

1. Delayed invoice processing

New vendors often send invoices before they’ve completed onboarding. Without the required details in place, those invoices just sit there unprocessed. That delay not only slows down payments but also creates unnecessary follow-ups and friction.

2. Manual Back-and-Forth

Most of the time, finance teams are the ones chasing vendors for PAN, GST, MSME certificates, and bank details. It’s a slow loop of emails, calls, and reminders, and it takes valuable time away from more important work.

3. Compliance gaps

Missing documents don’t just hold up payments; they create risk. If key statutory details are missing or inaccurate, it opens up room for audit issues, especially during financial close or regulatory reviews.

4. High operational effort

Even when you get the right information, someone still needs to manually enter it into the system. That’s duplicate effort, prone to human error, and adds up fast when you're dealing with multiple vendors each month.

Each of these issues on its own might seem small, but together, they slow down your invoice-to-pay cycle and stretch your finance team thin. We’ve seen this firsthand, and it’s exactly why we knew something had to change.

The Touchless Solution with Automated Vendor Onboarding

After dealing with onboarding delays and endless back-and-forths, we realized automation isn’t just a nice-to-have; it’s essential. That’s where TYASuite comes in.

With TYASuite’s Zero-Touch Vendor Invoice Processing, the onboarding process becomes completely automated and hassle-free

Here’s how the touchless onboarding feature works in a zerotouch vendor invoice processing system:

1. Invoice arrival & Vendor check

The moment the invoice is received, the system checks the vendor’s status. If the vendor is already registered, the invoice moves forward in the payment process without delay. If the vendor is new or unregistered, the system flags this automatically; no manual review is required.

2. Automated onboarding trigger

Instead of your finance team manually reaching out to collect vendor details, the system takes over. It sends a personalized email to the vendor with a secure, unique onboarding link. This link guides the vendor to a self-service portal designed for easy registration.

3. Vendor self-registration

Using the link, the vendor accesses the portal and uploads all necessary documents themselves. This includes PAN, GST certificates, MSME registrations (if applicable), bank account details, and any compliance documents your organization requires. The portal is built to clearly communicate what’s needed, so vendors know exactly what to provide, eliminating confusion and back-and-forth.

4. Automatic data sync & validation

Once the vendor submits their information, the system automatically verifies and validates the documents to ensure accuracy and compliance. The data then syncs directly into your enterprise resource planning (ERP) or accounts payable system, updating the vendor’s profile without any manual intervention.

• GST verification – Cross-checks GSTIN validity with the government portal.
• PAN verification – Confirms authenticity with the income tax database.
• MSME verification – Checks MSME registration against the official database.
• Bank verification – Validates account details using the banking database.

 “All these verifications happen in real-time, touchless, before the vendor can even submit their documents.”

5. Manager approval before final registration

Once government validations are complete, the system routes the vendor profile to the designated manager for final approval, ensuring both compliance and internal control before the vendor is fully registered.

6. Invoice processing resumes instantly

With the vendor fully onboarded and their details in the system, the invoice can now proceed through the payment workflow without further delay.

The result? The entire onboarding process happens seamlessly and in real time, eliminating delays and freeing up your finance team to focus on what really matters.

7. Automated MSME yearly status check

The system also performs an annual MSME status re-check automatically. Vendors receive automated reminders and follow-up emails to update their MSME status, ensuring records remain current without manual effort from the finance team

Benefits of automated vendor onboarding

For the Business:

⇒  Speedier Invoice Approval

New vendor registrations happen instantly, so invoices don’t sit idle waiting for paperwork. This keeps your payment cycles moving quickly.

⇒  Built-in Compliance

All necessary tax and regulatory details are captured right from the start, helping you stay audit-ready without scrambling for missing documents.

⇒  Less Busywork for Finance

By removing manual data entry, your finance team can focus on more strategic tasks instead of chasing down vendor info.

⇒   Improved Audit Confidence

Digital records are organized and verified automatically, making audits smoother and reducing risk.

⇒  Quantum of Time & Effort Savings

Significant Time Savings: What used to take days of chasing vendors and manual verification now takes minutes with touchless automation. Finance teams save dozens of hours each month, freeing them from repetitive onboarding hassles.

For the Vendors:

⇒  Effortless Setup

Vendors only need to follow a single link to complete their registration, no printing, scanning, or complicated forms.

⇒  Quicker Payments

Without onboarding delays, vendors get paid faster, strengthening your supplier relationships.

⇒  Clear Communication

Vendors know exactly what information is needed upfront, cutting down on repeated requests and confusion.

Why this matters for Finance & Procurement teams

♦  Removes one of the biggest roadblocks in invoice-to-pay cycles.

Vendor onboarding often causes delays that hold up the entire payment process. By automating this step, you clear the way for invoices to move through quickly, reducing frustration and speeding up cash flow.

♦  Ensures “zero-touch” truly covers onboarding, processing, and payments.

Many systems claim to be zero-touch but still require manual intervention during onboarding. This solution guarantees that from the moment a vendor submits an invoice to final payment, everything happens smoothly without your team having to chase or input data.

♦  Strengthens vendor relationships with a professional, hassle-free experience.

When vendors experience a streamlined onboarding process, it builds trust and confidence in your operations. A smooth start sets a positive tone for ongoing collaboration, making vendors more likely to prioritize your business and respond promptly

♦  TYASuite’s Advantage

TYASuite delivers a fully automated vendor onboarding experience integrated seamlessly within its Zero-Touch Vendor Invoice Processing platform.

Engineered to comprehensively address critical compliance requirements, including GST, MSME registration, banking information, and statutory validations, TYASuite minimizes risk and ensures regulatory adherence.

This robust solution empowers finance and procurement leaders with complete end-to-end visibility and control, eliminating manual interventions and streamlining the entire vendor onboarding to payment workflow.

By leveraging TYASuite, organizations can enhance operational efficiency, reduce errors, and maintain consistent compliance while fostering stronger supplier relationships.

Conclusion

Vendor management is moving towards fully automated, touchless systems that streamline operations and reduce manual workload. By adopting a touchless system like TYASuite’s Zero-Touch Vendor Invoice Processing, businesses can significantly reduce cycle times, minimize errors, and maintain full compliance with regulatory requirements.

Moreover, automating these workflows improves vendor satisfaction by offering a transparent and hassle-free experience, ultimately strengthening long-term partnerships.

Take control of your vendor onboarding and payment cycles. Experience the efficiency of TYASuite’s Zero-Touch Vendor Invoice Processing today.