A Vendor Management System (VMS) is crucial for organizations to manage their vendor relationships and payment tracking. With blockchain technology, a VMS can provide a decentralized and tamper-proof platform that enhances transparency, security, and automation. All parties involved can have real-time access to the same set of data, creating a transparent ecosystem that eliminates information asymmetry. Additionally, the immutability of blockchain enhances the integrity of vendor-related records and reduces the risk of fraud or manipulation. Employing smart contracts within the VMS can automate tasks such as onboarding, contract execution, and payment settlements, leading to improved efficiency, trust, and accountability in vendor management operations. The traditional vendor management system faces several challenges that can be addressed by utilizing blockchain technology. One key problem is the lack of transparency and trust in vendor relationships. Information asymmetry and discrepancies in records can lead to disputes and hinder effective collaboration. Additionally, manual processes and paper-based documentation result in inefficiencies and errors, increasing administrative overhead. Furthermore, the centralized nature of traditional systems exposes sensitive vendor data to the risk of unauthorized access and data breaches. By implementing a blockchain-based vendor management system, organizations can overcome these challenges by ensuring transparency, immutability, and secure sharing of information, automating processes through smart contracts, and enhancing data security and privacy.